The Big Picture & Pending New Trades With all of the October 16th expiration positions now out of the way, there is room in both Premium and PRO portfolios for several new positions that will carry our trading through the Nov 3rd election...and its aftermath. Coupled with the election is what appears to be an alarming increase in Covid cases here in the US. But that is not necessarily a bad omen for the market. The worst of the Covid-led market scare in late February took the DJIA down 10,000 points, then from its late March low it has rallied back 10,000 points. The only question next time (like right now) is whether the first leg will be down again and then up, or the next leg is up, and then down. We will know by Nov 4th. TSLA One of the best trades in the Intermediate Term Portfolio was the TSLA Oct 16th $400C, bought on August 12th at $13, going off the board Friday at $39 in-the-money. Let's call it a triple. Still open is the Dec 18th $550C, a little underwater for now (-34%). TSLA earnings are Wednesday. The stock closed last Friday at $434, was as high as $465.90 during the week, but closed back down at $439.67, a disappointing pre-expiration week. We'll see what happens in the three days of trading pre-earnings, but holding through earnings is a dangerous, all-or-nothing bet, for any nearer term options. The 50 day moving average is at $405.65 which should provide massive support, if seen. Let's hope it's not seen, at least not before Wednesday. The Future is EV As the planet begins its transformation from fossil based fuels for personal transportation vehicles to electric ("battery") vehicles, TSLA will be leading the pack in almost every aspect of the transformation. They are at least 3-5 years ahead in battery technology and probably the same in self-driving, "autonomous" technology. So why look further? This is why: NIO is up 10X in the past six months, almost like a baby TSLA just shot out of a cannon. Two recent IPO's, LI and XPEV are also on my screen to see if either or both begin to take on the same characteristic price patterns as TSLA and now NIO have exhibited. Stay tuned as the making of a basket of EV stocks begins to take shape. The future...is the future.
