I sent this out to subscribers a week before Tesla 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.
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.
Best Leveraged Options
I recommended the three best situated options to our Premium and Pro subscribers in the Weekend Update. It's an example of the difference between being a paid subscriber or just a loyal follower of my work. If the latter, I've been pumping on TSLA since Dec 9, 2019. I hope you've done well, it would have been hard not to. My thanks for staying subscribed to this blog. If the former, well, I can tell from your emails that my TSLA coverage and recommendations has changed lives.
Back to the latter, hey, how about spreading some of that love around?
"Come on man...."