First, some recent history and how being right on TSLA can translate into massive returns. There are three links below the chart that should be read in order to understand how updates and alerts come to be trades. The first Buy above occurred when TSLA broke out above $650 on Jun 23rd, coincident with a Buy Signal from our pattern recognition system. As you can see by the expiration (Jun 2023) it was meant to be a long-term position. The shorter-term Oct 20th trade was sent out as an example more than a formal trade, but it was so compelling I took it (as have many subscribers from your emails). In other words, you can buy into TSLA without a formal Buy Signal, anytime. Jun 9, 2021 - TSLA Strategy: Update Jun 10, 2021 - TSLA Long Term Price Projection & Strategies Oct 14th Tesla Update For new subscribers and old, or rather "seasoned," what to do now? When it comes to the magnitude of opportunity that is TSLA we cannot afford to wait around for a "dip." Simply going up slower today then yesterday has been "dip" enough for the stock to take off even stronger the next day. In other words, dips are relative, subjective, and an unreliable way to enter an initial position. Some general parameters If you are new to the service: (1) We value "get in now" over "wait for a dip." (2) We value owning shares over sitting on hands not knowing which option to buy. (3) When it comes to options we value time over strike; that means 6+ months and if your capital allows it, 2023 calls over 2022 calls and late 2022 calls over mid-2022 calls. Shorter-term expirations make better percentage returns so if you go that way, pay attention. Two Examples Going Forward* Sep 2022 $2,000C = $85 = $8,500 - for a 3-6 month trade. Jan 2023 $2,400C = $80 = $8,000 - for a longer-term Buy and Hold LEAP. *Options are full of risk commensurate with reward. Over the years we have held TSLA calls until they expired worthless. It happens. But often the next trade is up several hundred percent, some much more. With options, trade management is a critical component of success. Using dollar cost averaging and/or money management stops is highly encouraged. For Current Subscribers Sitting on Big Gains Idea: Take profits in an in-the-money call and with the proceeds: (1) Roll-up into an out-of-the money call, same expiration or above, and/or, (2) Buy shares with some of the gains, and/or, (3) Take out some cash and buy yourself a present. More specific ideas will come as the market unfolds in the weeks ahead. Coming next week: A long term hedge against a market meltdown via puts in the legacy automakers.
