TSLA is up 43.65% from its 2022 low of $620.57 on May 24th. It took us until July 21st, about a month off of the lows, to generate formal TSLA Buy Signals. We bought the Nov 18th $1,200C in both the Premium Service (entry 19.10 currently 26.50) and the PRO Service (entry 15.00). That call closed Friday at 26.50, up 38% (Premium) and 76% (PRO) with four months to go until expiration.
In the aftermath the shareholders meeting, the stock split expected by the end of August, the EV tax credit moving its way through Congress, and any new products announced during the meeting, we will be taking profits and piling at least some if not all of them into 2023/2024 calls in anticipation of a run to new highs, then up through the $2,000's (pre-split) and to our ultimate target of $3,000 by 2024-2025. [See Fib extension tool price forecast on right axis.]
TSLA Long Term Wave Progression
During the 2019-2021 Wave 3 advance TSLA ran up from around $70 (Dec 2019) to $900 (Jan 2021). All indications are that it is in a new Wave 3 advance that began at the May 2022 $620 low, already up 43% in two months. Another 12X advance may seem inconceivable ($7,440) but half of that ($3,720) is doable as it is supported by underlying fundamentals (and Fib extensions).
If you take no other trades recommended by this service during the term of your subscription, DO NOT PASS ON TSLA, it continues to be a Game Changer, and for some, a Life Changer. I'll do my part: Giving subscribers an excuse to go Long TSLA with shares, calls, and/or LEAPS. The rest is up to you.
TSLA Option Trading System Upgrade
I've never liked stops on TSLA option trades, the rewards for being right have been so generous and the stock so strong in its upswings since late 2019, I'd rather buy small with no stop, than buy medium or large with a 50% stop, trailing or otherwise. That still resulted in multiple back-to-back total wipeouts in 2020 and 2021, but also resulted in numerous three, four and even two five figure percentage gains along the way. Nonetheless, an option expiring worthless wreaks havoc on the psyche and what is oftentimes worse, it makes you less likely to take the next trade, you know, the one that's up 1,000% in three months.
Let's fix that right now:
Once the option reaches +100% institute a strict 50% trailing stop, i.e., a decline in price enough to retrace half the percentage return from peak gain.
If Peak Gain = +100%, THEN, exit trade if gain declines to +50%
If Peak Gain = +500%, THEN, exit trade if gain declines to +250%
If Peak Gain = +2,400+, THEN, exit trade if gin declines to +1,200%
Below are our TSLA trades since "Game Changer" in Dec 2019 when we married this stock and instituted our TSLA pattern recognition option trading. The "exit" returns shown are half peak gain returns which should provide a rough estimate of what was possible implementing this trailing stop technique. It is not the same as real time real money results, but what is absolutely the same are the verified dates of our BUY SIGNALS, along with actual entires and maximum gains shown on these tables. Note that even with this stop there are losing trades and a few total wipeouts, but applying the new rule reduces losses in both number and size.
As for what was left on the table as the result of some of the early exits, yea, some huge gains were reduced by using this exit strategy, but with TSLA we are getting new trade set-ups on average of every 6-8 weeks, so there is always a new trade lurking in the wings. As discussed in this Weekend Update that went out on Saturday, (reposted in part above) the next two years for TSLA will be all about exponential growth, in fundamentals, market cap and stock price. Our best TSLA trades lay still ahead, and you are welcome to come along and be a part of it. When it comes to trading TSLA options, either level service will do and remember, the PRO Service includes the Premium Service, for maximum trade opportunities.
Blue Line PRO Service- TSLA Option Trades w/50% Trailing Stop After +100%