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Is it time for Tesla to LEAP again?

corneliussmurphy 0

With the recent earnings report from TESLA along with a few analysts suggesting a lower target price, the formula for TESLA to break-out once again is upon us. Don’t just take my word for it, let’s use history as the blueprint along with some information from a TESLA expert 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).

https://www.thestreet.com/jim-cramer/stock-market-advice-live-tesla-tsla-gamestop-gme-earnings-gauntlet-april-27

Last year, when TESLA was a few hundred bucks per share and so many so called “experts” were shorting the stock, we saw a ramp upward followed by a modest pull back. That’s the case once again as we’ve just pulled-back from around 900 to around 675 as happened in late 2019/early 2020 (both circled).

When the momentum continued, 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. My recommendation 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. 

Here’s the play I am going with as we speak. January 21, 2022 CALLs Strike Price $1,500 for around $18 ($18 x 100 = $1,800) and my rationale is 2fold (excuse the pun).

  1. With history from last year as our barometer, you’ll be elated when TESLA spilts again late in the fall and baby gets a new pair of shoes.
  2. It’s always a good idea to acquire widely-held options for liquidity and the January 21, 2022 CALLS at $1,500 have much activity and open interest.

Update, I just bought this LEAP on 5-6-2021 for $14 x 100 = $1400 so even better than my original pitch.

Make your own decision as options are highly speculative and keep in mind that I am not an expert nor do I provide anything but some fun and creative strategies. However, 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!