Tesla Motors Corp. TSLA – Options Update
Our bearish sentiment on TSLA yesterday ended up working in our favor quite well, as the intraday volatility provided traders with not one but three chances to execute lucrative swing trades. Our specified target range was the TSLA Weekly $200-195 Puts; those three opportunities on the day extended to all three sets of contracts, and were as follows:
$200 Puts – 4.45-8.45 (+55%), 4.15-7.50 (+81%), 4.36-6.35 (+46%)
$197.50 Puts – 4.06-6.35 (+56%), 2.83-5.39 (+90%), 2.83-4.51 (+59%)
$195 Puts – 2.44-5.13 (+110%),1.87-3.81 (+104%), 1.70-2.89 (+70%)
Amid the bombshell that Britain passed a referendum effecting its exit from the European Union (at least a two year process), world markets in general are all feeling the strain at present. TSLA has hit a low of $186 in the premarket, so our observed contracts all stand to produce further gains this morning.
To get ourselves a little closer to the heaviest action in the event of a continued backslide for TSLA, we may consider rolling down our strike range to include the $192.50 and $190 Puts as well.
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FRESH OPTIONS IDEAS:
As we’ve done many times before when attempting to use overall market conditions to our advantage, we’re going to be tracking some SPY Calls for potential daytrades. As long as the SPY can hold above $200, we could be in line to see some major volatility in the SPY Weekly $200-205 Calls. As always, we must issue a strong note of caution with regard to trading weekly contracts on a Friday. It should only ever be attempted by advanced-level traders!
We also want to submit another familiar face for a potential play with much less urgency. For a longer-term idea, we’ll be putting the PBR 07/15 $6.50 and $7 Calls on our radar.
Gold Watchlist:
We also want to provide our readers with a smattering of gold-related stocks to watch this morning. Currencies are taking a big hit, which usually means an influx of investor confidence in precious metals. As such, we will naturally look to plays like these for quick-hit opportunities:
LODE, PGLC, VGZ, XRA,TRX, GORO
Extended Watchlist:
PXYN, NHMD, DLCR, EMES, ENDV(Bottom bouncer)