TSLA rejection againTSLA has pretty much hit my 260$ price target, I have been selling covered calls against my TSLL position for this. I am prepping to short the stock as we approach this important fib. TSLA has rallied over 40% since August 5th and is due for some profit taking. I am not sure if the stock will completely retest the green fib at 220$, but I will definitely look for the EMAs to rise and meet the stock at some point. The basics here is that TSLA is simply overvalued, this is why the stock has had so many bull traps recently. Promises for the future need to be perfect and exceed expectations to justify this madness imo. I continue to have exposure to this stock simply because the cult is that strong, and I do not have any similar exposure in my accounts.
My plan:
I will start layering in TSLL long puts around 258$ TSLA price. I will place a small bet with a huge upside likely 10$ strikes a month or two out. With 3-700$ exposure I am presented the opportunity for a few thousand in profits if I am right. If I am wrong I ride my shares that arent called away. I think we see at least 234$ again soon.
