TSLA's run up over $200 requires a recalculation of the 50% trailing stop. I'll be doing the math for everyone this time, but that will not always be the case, so try to keep up. Note: This analysis is based on the Premium Service entry which was a few hours after the PRO Service and at a slightly higher entry price. TSLA Daily Trend Model TSLA Sep 15th $200C - Calculating 50% Trailing Stop Best price since entry = $29.64*50% = $14.82 Stop = If option trades at or below $14.82 exit trade and stand aside waiting for next signal. Gain on trade = +43%. Best percentage gain since entry = +185%*50% = +92.5% = $20.00 Stop = If option trades at or below $20.00 exit and stand aside waiting for next signal. Gain on trade = +92%. Discussion The call is trading today at $29.50 with two potential stop-exits at $14.82 and/or at $20.00, depending on which of the two calculations is used. As discussed earlier, that choice is individual, but bottom line is by using a 50% trailing stop a gain is some magnitude is locked into this trade. There are 107 days left until September expiration and price patterns are suggesting a run to $250-300 by expiration. At TSLA $300 the call is worth $100 for almost a 10X return if held to expiration. In other words, using the stop locks in a nice profit, but unless we have a way to get back in, the mega profits could get away. Fortunately, we do have ways to get back in, so even if stopped out in the days or weeks ahead, pay attention to any new TSLA Buy Signals. New Positions New subscribers or anyone looking to initiate or add to a long call position in TSLA options now can look at the Sep 15th $220C @ $13.00.
