TESLA

Everything is about Tesla electric vehicle company these days. But let’s hold our horses for a minute. I will not dive into the economic situation and financial analysis. But I will remind you, though, of common sense. Tesla, was up almost 500% a few days ago if you take as a reference to the price from last September. It was up 106% this year alone and we are less than 40 days in it. Tesla is almost worth twice the combined market cap of GM and Ford. Tesla has a market cap of around $160 billion. That puts it above Netflix’s $157 billion market cap. It also surpasses the likes of Nike, Nvidia. Tesla it hadn’t a profitable year yet! So, yes it has a lot of potentials and reflects a brighter and cleaner environment but besides the few positive news regarding the sales and new factories which if you want could have taken the stock up, this is abnormal and doesn’t have anything to do with reality and the market. It’s just euphoria, similar to bitcoin if you want. Everyone who bought Tesla is suddenly a genius! Unfortunately, live’s a bit more complicated.

Being a volatility seller this makes me happy and like a surfer with ocean’s waives can’t wait to through my self in it. So, this is the trade I made yesterday: 555/560/960/965 short Iron Condor for 2$ credit. The stock was all day around 750. Yes, that’s right, 200$ on either side to be proved wrong! What happens when Implies Volatility tops 100%.

TSLA Iron Condor Option Strategy

Bring it on, TSLA! 😉