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Home › Forums › Swing Trades › TSLA Support Buy
TSLA is down 15% in a 10 day timeframe:
That tends to be *it* in terms of momentum. There have been instances in which the selling gets worse and volatility accelerates but it normally comes on earnings.
I’m already in the trade (and getting squeezed) but here is the best setup right now.
Here’s the trade. Use a scaling technique:
Sell to Open TSLA Dec 180-175 Bull Put Spread @0.85
The market is a little wide but I’m seeing prices flash at .90-.95 so I think this price is fillable.
Add at 1.25, 1.80.
I’m OK holding this through earnings.
TSLA selling off aggressively off of two things:
1. Consumer reports withdraws support for the Model S given some poor ratings.
2. Something about their referral program being illegal.
Expect momentum to continue to come into play here. Anybody who bought >235 and was hoping for a further bounce now has to contend with a 7% price drop in a single day, wiping out all gains from the past 5 days. Expect more of a stop run.. be ready to scale in further.
Selling another round at 1.20, will buy back this ruond at .80
Out of the 2nd round at .80, still have first round on.
40 realized per spread.