In the trader tip video, Brian talks about the Tesla TSLA trade setup of the week. Looking at the TSLA chart, we can see a downdraft and it’s about 40% or so off of its all-time highs. TSLA has also been consolidating, going sideways, and finding its own support over the last month or so. We can even see a double bottom now.
With that being said, that is an opportunity to do a put vertical credit spread. This trade structure gives us a little bit of room to be wrong. We can be out of the trade before the next earnings report.
Subscribers: Please let us know what you would like to learn and we will add it to the roster of our weekly Technical Trader Tips!
Non-subscribers: Please enjoy these micro-lessons as a way to further your education and understanding of how a technical trader…well…trades!
Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
