With a big press dump over the weekend, TSLA both announced a rise in deliveries following its price slashing strategy and also a tirade from Musk trashing his electric truck and steering the ship at a $20k version of his product line.

Tesla has a strong market advantage but has really struggled as the leader in the EV space. One of the takeaways from that is that even though competitors chip at Tesla’s overwhelming lead in the market, it’s dominance is undeniable. And not just from a market share perspective, but from a profitability angle as well.

This sets up a scenario where wild press stories from Elon Musk (and there is no shortage of these) have a habit of creating a buying opportunity. TSLA has been on a climb lately, but has the potential to keep climbing.

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If we can see TSLA hold up on support from the 10 and 20 day moving average, it should push to a new high for this year. The bullish crossover on the MACD is above 0 but there is a lot of momentum pushing higher. Look at a May call option around 220 to grab some potential income from this move. The premium is on the rich side at $220 (around $13) but the move is strong.

We will watch to see if it drops bellow the moving averages for confirmation today in this example of a stock with momentum pushing to higher highs.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily