Following up on late Friday's 5-minute chart, here is how DIA finsihed the week: The final 30 minutes breached the horizontal resistance line, suggesting one of two outcomes, (1) a new leg up, (2) an exhaustion thrust to be followed by a spike back down leading a new leg lower that will retrace the entire run up from April 3rd. If the former, TSLA should continue to do very well and is the best bet to participate on the upside. If the latter, it will be another round of 20-30% declines in the market averages, Ten Days in the Life of TSLA & It's Calls Starring, the June (2020) $800 Call These two tables below compare the prices of TSLA calls of varying strikes and expirations during the shares run-up of the past 10 days. As I have pointed out before, it almost doesn't matter which strike so long as you have enough time to expiration for these upward thrusts to unfold. The Jan 2021 calls are generating some substantial returns and although much less than the Jun 2020 calls, time is a non-factor with three more earnings reports and a whole lot of news coming out before Jan 2021 expiration. The Jan 2021 $1800C is trading at about $35 ($3,500), which is where our very first TSLA call (Jan 2021 $420) was trading back in early December 2019. It is now valued at $374.55 ($37,455). TSLA & Calls Apr 9th TSLA & Calls Apr 17 The stock has been running ahead of 1st quarter earnings (Apr 29th) and then later in May, "Battery & Powertrain Investor Day." Buy the rumor, sell the news? Maybe better to just buy the shares and trade the calls. This is a powerful stock (and lineup of cars, batteries, technologies, management and engineering). Disruptive innovation that is propelling everything forward, including Tesla's market cap. TSLA is the only stock I own. "TSLA Stochastic Buy Confirmed" - Mar 25 Price dropped almost $100/share in the days following this signal. A 50% trailing stop would have exited this trade with a 32% loss. Trading this signal with the Jun $800 calls and without a stop has resulted in significant gains. TSLA hands us 2-3 of these Stochastic Buy set-ups a year; worth the price of admission if that's all you do with your subscription. The Big Picture Last week's DIA chart updated, nothing has changed about the analysis, it's just getting stretched out. At some point the set-up for a Wave 3 hard down might get derailed, but we're not there yet.
