Option strategies for TSLA earnings!
Updated
Tesla will post its financial results for the third quarter of 2023 after market close on Wednesday, October 18, 2023.
TSLA: Oct 2nd,2023
In the third quarter, we produced over 430,000 vehicles and delivered over 435,000 vehicles. A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged.
Fundamental Analysis: (Negative)
Lower numbers for produced cars, Lower operational margins, and Lower sales are not what the market rewarded!
Technical Analysis: In the consolidation zone below the resistance line!
Important Resistance levels: 278-300
Important Support levels:234-212
Expected volatility: 13-20%
Direction of breakout? No one can predict that!
So what should we do?
For Stock traders, it is not recommended to open a position!
For option traders, the story is different:
we have two different options!
Long Straddle 265 for October 20 at 20-21 USD/contract
or
Long Strangle Oct 20,2023 call 285 with Put 235 at 6USD/contract
Option Profile:
option wall: 200-300
Max Pain: 255
Put/call: 0.975
Note: If TSLA doesn't make a sharp move in the next 8 days both strategies lead to loss!
Education:
A long strangle is an options strategy that involves buying a call option and a put option with different strike prices and the same expiration date. The call option has a strike price that is above the current market price, while the put option has a strike price that is below the current market price.
A long straddle is similar to a long strangle, but the strike prices of the call and put options are the same.
Both long strangles and long straddles are bullish strategies that profit if the underlying asset price moves significantly in either direction. However, they differ in terms of their risk and reward profiles.
A long strangle has a lower risk than a long straddle because the strike prices of the call and put options are different. This means that the trader will only lose money if the underlying asset price does not move significantly in either direction.
A long straddle has a higher risk than a long strangle because the strike prices of the call and put options are the same. This means that the trader will lose money if the underlying asset price does not move significantly in either direction.
However, a long straddle also has a higher potential reward than a long strangle because the trader can profit if the underlying asset price moves significantly in either direction.
Which strategy is better for you depends on your risk tolerance and investment goals. If you are looking for a lower-risk strategy with a lower potential reward, then a long strangle may be a good option for you. If you are looking for a higher-risk strategy with a higher potential reward, then a long straddle may be a better option for you.
It is important to note that both long strangles and long straddles are complex strategies and should only be used by experienced traders.
TSLA: Oct 2nd,2023
In the third quarter, we produced over 430,000 vehicles and delivered over 435,000 vehicles. A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged.
Fundamental Analysis: (Negative)
Lower numbers for produced cars, Lower operational margins, and Lower sales are not what the market rewarded!
Technical Analysis: In the consolidation zone below the resistance line!
Important Resistance levels: 278-300
Important Support levels:234-212
Expected volatility: 13-20%
Direction of breakout? No one can predict that!
So what should we do?
For Stock traders, it is not recommended to open a position!
For option traders, the story is different:
we have two different options!
Long Straddle 265 for October 20 at 20-21 USD/contract
or
Long Strangle Oct 20,2023 call 285 with Put 235 at 6USD/contract
Option Profile:
option wall: 200-300
Max Pain: 255
Put/call: 0.975
Note: If TSLA doesn't make a sharp move in the next 8 days both strategies lead to loss!
Education:
A long strangle is an options strategy that involves buying a call option and a put option with different strike prices and the same expiration date. The call option has a strike price that is above the current market price, while the put option has a strike price that is below the current market price.
A long straddle is similar to a long strangle, but the strike prices of the call and put options are the same.
Both long strangles and long straddles are bullish strategies that profit if the underlying asset price moves significantly in either direction. However, they differ in terms of their risk and reward profiles.
A long strangle has a lower risk than a long straddle because the strike prices of the call and put options are different. This means that the trader will only lose money if the underlying asset price does not move significantly in either direction.
A long straddle has a higher risk than a long strangle because the strike prices of the call and put options are the same. This means that the trader will lose money if the underlying asset price does not move significantly in either direction.
However, a long straddle also has a higher potential reward than a long strangle because the trader can profit if the underlying asset price moves significantly in either direction.
Which strategy is better for you depends on your risk tolerance and investment goals. If you are looking for a lower-risk strategy with a lower potential reward, then a long strangle may be a good option for you. If you are looking for a higher-risk strategy with a higher potential reward, then a long straddle may be a better option for you.
It is important to note that both long strangles and long straddles are complex strategies and should only be used by experienced traders.
Note
Note
If you have long straddle 265 or long strangle 235- 285, you can close your trades by 80-100% profits at the market opening! Set your price limits for the put options 265 at 36-40, and for put 235 set the limit between 8-10.Best!
Note
Now you can close this trade with +100% profits in 9 days..!Trade closed: target reached
Note
Note
if it is above your level of comprehension it doesn't mean it is not educational!!! Note
this analysis provided the opportunity to make up to 300% profits!!!Trade closed: target reached
All the information you need to make an informed decision for free in the next 3 weeks: docs.google.com/spreadsheets/d/11cFXkX6bPFslJzkQxtLJKDNWZQhpaBvuoZvDiFonZuc/edit?usp=sharing
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