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A Short Trade Idea in Tesla as It Crashes Below Its 50-Day MA

by | May 10, 2024

Join Graham at 2 p.m. ET TODAY as he rolls out the red carpet for a brand-new project: MOONSHOTS!

Once again we’re not seeing much directional bias in the market on this final trading day of the week, a week that’s seen very little volume and falling volatility.

The bond market (TLT) is selling off, which is going to put some pressure on stocks.

Consumer sentiment also fell 12.7% for the month of April, which doused the market with some cold water this morning…

Most of the price action so far this morning, in my opinion, has been totally random.

Notice that no sector was up even a half-point this morning, which tells me there’s no bus driver.

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Random action like this leads to low-probability trading, and the market filled the gap to the downside early, so don’t go trying to be a hero out there.

One stock to keep an eye on is Tesla (TSLA).

I shared this idea with my Trading Pit members already, and I’m giving it to everyone in my “VIP Trade Room” session — which is open to everyone to attend (noon ET Monday-Wednesday, 11 a.m. ET Thursday and Friday!).

It’s no secret that Tesla has been a dog for much of 2024, down over 32% year to date.  Check out this chart from my ProTrader Dashboard, the top right chart in the first image, specifically (which is a daily chart with all of the moving averages).

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Here’s a closer look at the daily section…

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The thick blue link that goes all the way across is the 50-day moving average, which Tesla just broke below (that big red candle on the far right.

This leads me to believe it’s going to continue breaking down and fill the gap lower.

I would buy the $170 put and sell the $167.50 put expiring next Friday, May 17. This will cost about $1.10.*

Or a trader could buy the $170 put and sell the $165 put for about $2.20 in premium, giving you about $5.00 in profit potential, should things work out.

I hope everyone has a great weekend! Be sure and join Graham for a very special event at 2 p.m. ET TODAY, when he’s rolling out the red carpet for a very special preview of a new project — he’s offering a nice discount today ahead of the world premiere!

Roger Scott
Roger Scott Trading

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

Telegram: https://t.me/+_vmfwkeP8fA5YWQ5

*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.

P.S. Graham Is Rolling Out the Red Carpet for ‘Moonshots’ — 2 p.m. ET TODAY

For the first time ever, Graham Lindman is hosting a “Red Carpet” event at 2 p.m. ET TODAY, May 10, where he’ll expose his latest project: MOONSHOTS.

What are MOONSHOTS, you may be asking?

These are 24-hour trades propelled by some of Wall Street’s biggest investments, happening almost every single day.

I have been LIVE trading these with our All Access Diamond members for the past few weeks, and the results are nothing short of astonishing…

  • 85.7% accuracy.
  • 10.62 profit factor.
  • 44.6% average return — OVERNIGHT!

During the event, I’ll detail the entire strategy and even provide select traders with access to the system, and the code behind these remarkable moves.

So clear your calendar after lunch and…

Join the Live Session Here!

The trades expressed are from historical data in order to demonstrate the potential of the system. From September of 2023 through May of 2024 from the study we have seen a 74.4% win rate on options with an average winner of 76% and an average return of winners and losers at 44% on an average 24 hour hold time in a model portfolio.

*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. 

 

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WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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