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Is it time for Tesla to LEAP again?

corneliussmurphy 0

With the recent earnings reported from TESLA along with some analysts suggesting a lower target price, the formula for TESLA to break-out could be upon us once again. History as the blueprint along with some information from a TESLA expert could help us to fully understand what’s under the hood of the world-wide leader in electric cars. Starting with TheStreet’s Katherine Ross & Jim Cramer in an interview with Rob Maurer from Tesla Daily, we learn more about Q1-2021 earnings and how tax credits and sales of Bitcoin played a role. Further, we get Rob’s perspective on Tesla’s record-setting profitable quarter, exceeding expectations despite an industry-wide shortage of chips. Finally, we’ll hear about some lesser-known TESLA Solar Products while Katherine and Jim ask a few tough questions (URL below).

Today’s sock and activity are similar to last year’s momentum and run-up. And short sellers had to cover their positions and were forced to buy the stock causing it to rocket up even more. Then, while in overdrive, TESLA finished the record-setting race and split 5:1 in late August 2020. Our recommendation back then was to purchase the January 2021 950 CALLs which, at the time were selling for around $19 ($19 x 100 = $1,900). That CALL surged to as high as $331,000 for a 174-fold gain. YES, we got lucky!

Fundamentals along with the current market capitalization & cash in the bank just don’t support the current stock price as only a car company, however Tesla is actually a technology company offering cars, batteries, software, solar products and rumors suggest even more to come on the horizon.

All-up, all-in, this creates an incredibly volatile scenario for betting with or against Tesla using options which are speculative and highly risky. Bottom line . . . if I’ve learned one thing from all of the research others and I have done on Elon Musk over the years it’s this . . . DON’T BET AGAINST ELON MUSK!

UPDATE 10-13-2021 – I may have called this one a few months early but I’m doubling down now for TSLA to hit 1000 in November and 1200 by year end. Contributing factors are oil prices & supply along with strong Tesla numbers internationally while most other automobile companies were negative. Take a look at the November 19th 2020 CALLS strike price 1200and your 50-cent bet should grow 5-fold at a minimum if not more.

UPDATE 11-1-2021 – Done and done! We got this one right with research as well as history & overlaying the graph from two years ago over current. As of the morning on 11-1-21, these options were way up and we cashed out on 10-25-21 for an excellent gain 38X as well. Stay tuned as we’re currently studying the feasibility of TSLA repeating what the run-up in 2020 which might suggest the stock reach $4,500 per share in the next 18 months! Remember, never bet against Elon Musk.

UPDATE 11-29-21 – With today’s 5.5% gain in stock price, could Tesla be ready to rinse and repeat the incredible run-up to another 5:1 stock split? I say yes and maybe even quicker than last time. Stay tuned but calls and LEAPs are in order such as the December 19, 2021 strike price 1800 as they are near term and relatively inexpensive. I also like January 2023 LEAPs at just about any price over 1500 if you can afford them.

RISK – Trading options may result in potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options markets. Do NOT trade with money you can’t afford to lose.