Yes, and a lot of people think that. In fact, I'd wager all traders worth their salt are considering that. Fuel for a dry squeeze up. Not saying a squeeze will happen or that gaps won't get filled. Gaps will get filled, but after what price is the question. I have a feeling people stuck with ITM CCs will feel the heat and keep rolling them up. At some point they'll give up and think the stock will never look back. That's when the correction will happen. In 2019 we bounced off 100 MEMA before topping out at 200 WEMA. 2023 is following this playbook, at least the first part. 200 WEMA is currently sitting at 180. Do you think the stock will feel like it "won't look back" at 160 or 165? I have a feeling it will be somewhere around 180-185. That's when it's going to happen. I'm going to caution against calling the top here unless you want to hedge your account, although the odds of 102 being THE low is high ATM so further hedging might not be necessary.
Also, if you are stuck with ITM CCs, don't give up. But also don't dig yourself a bigger hole. Watch the 180 level.
Thank you for advice and I am about on the same page, surely the following
1. 150 cross sets 102 as a more solid bottom. (as you called crossing 140 doing so, I think)
2. It is scary to hold on to -CC (but I still do), but I am cutting my losses by daytrading in and out of shares and new -CC for next week too. These double whammies have cut my virtual loss on -cc 137 and 139 already in half today.
3. I am reckoning, a dip before 180 will occur because of macro and am considering (thinking after ER Tesla won't dip as far as NFLX/MSFT and maybe even AAPL/MSFT) trading -c (NOT covered) these shares based on the thought that the market is fighting the FED on expected lower interest rates. The Fed then has no other choice but to be extra hawkish to force their narrative, that inflation is far from over (wanting 2% to be secured) Especially when earnings are too high, not leading to more unemployment, not cooling down economy enough. So, especially when above this PCE tomorrow is too mellow, FED is gonna stop any squeeze next week (FOMC 1st of febr).
So not too sure if $TSLA will fall like the rest. Maybe I will decide to exchange (a part of)- ITM CC TSLA (expiring 1/27) to - ITM CC NFLX/MSFT/SPY (edit: for next week of course) avoiding the risk of ER spoiling.
Tesla is very solid, everybody seems to be convinced now, so a topping out, never looking back is imminent. I have been there before, just holding shares, but this time (after a dip, that I really want to see macro at least) I am planning on -P jun '25 to turbo boost. So at the moment gathering as much shares as I can, not a spare cent left.