Red_Ben

Double Top On Tesla - 600 coming

Short
NASDAQ:TSLA   Tesla
It's time for the big short on TSLA. 1000 resistance is holding and we have yet to test the log-chart bullish trendline since going parabolic. There's good reason to think it fails when we do, but even if we get a bounce, bearish divergence is suggesting momentum is running out. I like a short here, targeting 600 with late March or early April dated puts. Either wait for a daily close below 880 or, perhaps better, buy on a bullish candle as near 1000 as possible. I'd prefer to hedge with a spread rather than place a stop on this trade. The more challenging aspect will be when to take profits. I'm watching the daily 50 sma very closely...other than that, watch for a gap fill and consider taking profits on puts with the intention of buying more on the dead-cat bounce.

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