This is our Intermediate Term hedge for TSLA calls and a directional trade on the market tanking between now and Labor Day. Sell Signal: ARKK (ARK Innovation Fund) Option: Sep 17th $110P (5.70-5.80) Target: Below $100 The amount of risk capital earmarked for this trade is a balance between how much TSLA is owned, shares and/or long term calls, and how aggressive a stance to take on a directional bet that the market is headed lower and possibly much lower. The relative weakness in ARKK compared to market indices is striking. ARKK topped in February, made an interim low mid-May, had a six-week retracement rally into early July and has now turned back down...hard.
