The Weekend Update recommended three TSLA Sep 2022 calls for new purchases. Here is an update and and three observations: TSLA Shares: 905 ----> 945 = +4.5% TSLA Sep 16th $1200C: 54.20 ----> 67.50 = +24.5% TSLA Sep 16th $1500C: 19.12 ----> 25.55 = +33.6% TSLA Sep 16th $1800C: 7.40 ----> 11.00 = +48.6% Observation #1 - Percent Returns On these six-month calls, the further out of the money the better the percentage return. This is especially relevant for PRO Service trading since it tends to be shorter-term oriented and more aggressive trading. The double edged sword of this kind of leverage is that it works the same way when trades go wrong, i.e., higher percentage losses. Observation #2 - Bullish > $900 With TSLA in particular: The higher the price, the more bullish the trade. All of the above calls are still "Buys" above TSLA $900 (currently $945). Observation #3 - Trailing Stops Short-term traders should keep a 50% trailing stop on a close only basis: Sep 16th $1200C @ 33.75 Sep 16th $1500C @ 12.78 Sep 16th $1800C @ 5.50 It would take a TSLA share price drop well below $900 for any of those stops to get hit anytime soon. Remember to keep moving stops up as options make new highs.
