[Options] A Self-Driving Long
The team at All Star Charts issued a bullish call on $TSLA in our most recent Monthly Conference Call. And the team lays out a good case for $TSLA trading up to as high as north of $1100 per share! That's a lot of road to ride from here (around $800).
So, let's take a look at a trade idea that is moderately affordable that would take a nice bite out of the middle of this possible run this summer.
Here's the Play:
Buying a $TSLA September 850/900 Bull Call Spread for a $18.50 debit looks like a great play here. This means being long the 850 call and short an equal amount of 900 calls for a net debit and this represents the most one can lose.
However, I won't intend to take a max loss if I can prevent it. If $TSLA closes below $650 per share and/or if the spread losses 50% of its value, I'll close the trade and move on. No questions asked.
On the other hand, if $TSLA goes our way, then I'd be looking to close the spread for about $35. This would represent a capture of about 50% of the maximum available profit. But I wouldn't intend to hold this trade into September expiration if I can help it. Rather take my money and run.
All Star Options subscribers with any questions on this trade, please send them here.
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