Tesla Q1 earnings preview – Keeping the dream alive
Tesla is always a trader favourite and this quarterly earnings report should garner strong interest. Few stocks create such fierce debate as to the near and longer-term prospects, and when you get such dispersion in the expected outcomes you get movement and this creates opportunity.
Movement is always a draw card for short-term traders and Tesla is the poster child of movement and volatility, especially around key announcements such as quarterly delivery or earnings reports.
If we look at Tesla’s pedigree over prior quarterly earnings (as a guide), we’ve seen the share price fall in five of the past eight quarterly earnings, with the average move lower being 5.7%. In the three time it rallied the average rally was 9.6% - somewhat skewed by the 17.7% gain seen in Q3 2019. So, one thing is true, historically we’ve seen sizeable moves in price to earnings news – this time may be no different, in fact, if the implied move on the day of earnings (derived from options pricing) is 8.7%, so traders are eagerly anticipating movement.
I've mapped out the implied levels on the daily chart for context.
For more intel on what to look out for take a look at the link - pepperstone.com/en-au/market-analysis/tesla-q1-earnings-preview-keeping-dream-alive/
Movement is always a draw card for short-term traders and Tesla is the poster child of movement and volatility, especially around key announcements such as quarterly delivery or earnings reports.
If we look at Tesla’s pedigree over prior quarterly earnings (as a guide), we’ve seen the share price fall in five of the past eight quarterly earnings, with the average move lower being 5.7%. In the three time it rallied the average rally was 9.6% - somewhat skewed by the 17.7% gain seen in Q3 2019. So, one thing is true, historically we’ve seen sizeable moves in price to earnings news – this time may be no different, in fact, if the implied move on the day of earnings (derived from options pricing) is 8.7%, so traders are eagerly anticipating movement.
I've mapped out the implied levels on the daily chart for context.
For more intel on what to look out for take a look at the link - pepperstone.com/en-au/market-analysis/tesla-q1-earnings-preview-keeping-dream-alive/
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