I sent this out a week before earnings with TSLA @ $814. It's still a good read: "There is a lot of speculation that a good report will send price to test the $900 all time high. The Fib projection tool says price will cut through $900 like a hot knife through butter to reach our end-of-year price target of $1,000...and then some. If so, new price target becomes $1,400 by March. "The March 18th (2022) $1,200 calls are trading today at $9.50 ($950). At $1,400 those calls are worth $200 ($20,000). Current Long Term w/Fib Price Targets Since that Oct 14th pre-earnings post TSLA has risen from $814 to a close Friday at $1,114 [$1,127 after-hours]. During that same time, the March 2022 $1,200C has risen from $9.50 ($950) to a close Friday at $117 ($11,700), reason enough for why we trade options, why we trade options on TSLA and why we pay attention to Fib price projections. Also from the Oct 14th post: "Longer term, my target is $1,500 to $2,000 by the end of 2022, no matter what happens on the 20th. The next higher target on the Fib tool (not shown) is $1,850...close enough." The chart above is still identifies $1,850 as TSLA's next price target, but what is more exciting is what happens when we take a step-up to the weekly chart and overlay extended Fibonacci Price Projections: To sum up: The price pattern that has ignited the run up from late 2019 (about $70/share (split adjusted) to $1,114/share today is now projecting a price of just under $4,000/share in the next two years. As always, it won't be in a straight line and there will be "dips" along the way. For the immediate future, I'm good with $1,351 by year end and $1,852 1st quarter 2022. The only problem with the latter is it is inconceivable to me that TSLA can run to $1,850 without $2,000 acting like a magnet, suggesting the time between $1,850 followed by $2,000 being a matter of weeks, if not days. Once above $2,000 we'll take a harder look at the path and time frame from $2,000 to $4,000. Rolling Up For Leverage Once again TSLA deep out-of-the-money calls have found themselves at or in the money. Previously double-digit priced calls are now triple digit priced calls. Time to roll up for leverage? The calls below are candidates for rolling up strikes to acquire more leverage. This only works if stock performance is relentless in its ascent. Yet here we are. Jun 17th 2022 $1,800C @ $35 ($3,500) Sep 16th 2022 $2,000C @ $35 ($3,500) Jan 20, 2023 $2,000C @ $55 ($5,500) Caveat: Rolling up strikes for leverage goes both ways, especially when way out of the money, i.e. risk commensurate with reward for a stock that keeps surprising on the upside.
