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Wiki Selling TSLA Options - Be the House

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Are you saying you are 1-2 fixes away from being disengagement free for million of miles? That's the thing about disengagements...you could be 2 fixes away from never to disengage on your normal routes ever again.
Dream on. You need to drive for a year to be sure ;)

There are still lots of features to add like

-able to read signs beyond stop and white speed signs
-understand hand gestures
-increase performance with road works
-work reliability with bar gates or any gates
-map new areas better and faster
Yes - that would be called "feature complete", something Elon talked about in 2019.

Getting OT now (kind of) .... so stopping here.
 
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What is Elon cooking?
1. Robotaxi unveil on 8/8
2. Here is chapter 8 of this podcast
3. I wrote this 8 years ago

1712449736376.png
 
Curious anyone still selling Call next week?
Already sold 100x -c165, SP going up is not a given, most of the world wants a compact car, not a robotaxi. 8/8 is a long way away and the post was clearly a stock-pump from Musk, and any reveal on 8/8 isn't going to mean a fleet of FSD taxis the next day either

And there's the small matter of the collapsing auto business, which right now is the main source of revenue

Not to mention a very, very bad earnings call coming up in a few weeks

I see no fundamental reason for the stock not to dump, nothing changed IMO. Nevertheless, it might induce some FOMO and pop, so I might just roll those -c165's up and out as a risk-reduction measure, then roll them back if/when the markets see through the smoke and mirrors
 
EPS might surprise in two weeks because of increased regulatory credits and FSD revenue release (no longer being Beta).

Beta has no meaning- not legally, not in GAAP terms.

The only new functionality actually having anything at all to do with revenue recognition in 12.3.3 is vision cars get autopark.

So whatever fraction was deferred for their inability to deliver autopark, specifically, to FSD/EAP buyers since the switch to vision could be recognized (in North America anyway). I doubt that's a substantial amount, and it's not new money coming in it's just moving from liability to recognized revenue.


What's the basis for expecting regulatory credits revenue to be significantly increased from Q4?
 
For many of my friends with millions of dollars invested in Tesla and busy day jobs, it makes sense for them to buy and hold. Maybe sprinkle in some covered calls or buy puts as insurance from time to time. Guys like me though, who have much smaller bank rolls, more time on my hands, and a deep fascination with phycology and technical analysis, prefer to trade tsla in hopes of making more during rallies while avoiding downside risk.

From my experience, the most money and the highest success rate will be made trading with the trend and identifying reversal points. So how do you identify the direction of the trend and how do you know when it has reversed? Here's my 2 sense:

There are small trends inside of bigger trends inside of even bigger trends. Most people know that, but what they may not know is which trend they are going to trade.

Just before P&D (4/2/23) I mistakenly traded the short-term uptrend despite the larger trend still pointing down. The larger trend is more powerful until it’s broken.

TSLA 4-4-24.PNG


To identify the trend, I like using candle setups, moving averages, and trendlines. Any indicator that the stock has recently respected should be used. If the SP hits a trendline and immediately shows support/resistance that is a well respected trendline. That trendline should then be monitored closely. Same is true of moving averages.

There are times the SP is not respecting a trendline or moving average. The SP acts like they don’t exist and it goes above and below them with ease. Times like these I don’t pay much mind to the indicator since they aren’t well respected. Here’s an example during the Nov-Dec 2022 fall where the daily 21 EMA was well respected until it broke in Jan 2023.

TSLA 21 EMA.PNG


To identify when a trend may have reversed or is coming to an end, I like using candle setups, RSI divergences, and volume. Reversal candles are really the first major sign of a trend reversal. Most recently on Dec 28th, 2023 we had a daily bearish engulfing candle after an 8-week uptrend that kicked off the downtrend we are currently in. If there was a hierarchy of reversal candles, the 1 day reversal and engulfing candle are at the top of the list.

Divergences are a great tool to identify when the trend may be approaching its end. Pair this with trendlines and volume and predicting some moves starts to seem too good to be true. At the end of the last major uptrend in Dec 2023, we had massive bearish divergence on the hourly time frames as we approached key trendline resistance.

TSLA weekly 4-4-24.PNG


Higher volume and/or a gap up/down on the day after the reversal candle is another key sign of a reversal. For example, Jan 9th, 2023 the SP gaped up the day after a 1-day reversal formed. Or on July 20th, 2023 the SP gaped down after hitting the strong downtrend leading back to its ATH. I also like to see volume increasing towards the end of a trend.

After a prolonged up or downtrend, if unsure if the trend has reversed ask yourself these questions:
  • Has there been a significant reversal candle both on the weekly and daily chart?
  • Has the stock reached a well-respected long-term moving average or trendline?
  • Has volume been significantly increasing towards the bottom both on weekly and daily?
  • Have any divergences occurred?
    • This point by itself is not a signal of a reversal and should only be used in combination with other factors. Divergences can last for several weeks, even months past when they first begin to form. Even then they aren’t a sign the SP has reversed, rather a warning.
After a questionable reversal, if you are still unsure ask yourself:
  • Has the SP broken a well-respected trendline or moving average in the direction of the trend you believe may have been reversed?
  • Did volume increase during that break? (For example, Jan 23rd, 2023 when SP gaped up and volume increased following breaking the well respected 21 EMA. Or on Jan 3rd, 2024 when SP gaped down and volume increased after SP broke the well-respected uptrend line.
  • What is the bigger picture telling you?
When in doubt, wait and do nothing. The chart will provide more data soon enough.
 
For many of my friends with millions of dollars invested in Tesla and busy day jobs, it makes sense for them to buy and hold. Maybe sprinkle in some covered calls or buy puts as insurance from time to time. Guys like me though, who have much smaller bank rolls, more time on my hands, and a deep fascination with phycology and technical analysis, prefer to trade tsla in hopes of making more during rallies while avoiding downside risk.

From my experience, the most money and the highest success rate will be made trading with the trend and identifying reversal points. So how do you identify the direction of the trend and how do you know when it has reversed? Here's my 2 sense:

There are small trends inside of bigger trends inside of even bigger trends. Most people know that, but what they may not know is which trend they are going to trade.

Just before P&D (4/2/23) I mistakenly traded the short-term uptrend despite the larger trend still pointing down. The larger trend is more powerful until it’s broken.

View attachment 1036427

To identify the trend, I like using candle setups, moving averages, and trendlines. Any indicator that the stock has recently respected should be used. If the SP hits a trendline and immediately shows support/resistance that is a well respected trendline. That trendline should then be monitored closely. Same is true of moving averages.

There are times the SP is not respecting a trendline or moving average. The SP acts like they don’t exist and it goes above and below them with ease. Times like these I don’t pay much mind to the indicator since they aren’t well respected. Here’s an example during the Nov-Dec 2022 fall where the daily 21 EMA was well respected until it broke in Jan 2023.

View attachment 1036429

To identify when a trend may have reversed or is coming to an end, I like using candle setups, RSI divergences, and volume. Reversal candles are really the first major sign of a trend reversal. Most recently on Dec 28th, 2023 we had a daily bearish engulfing candle after an 8-week uptrend that kicked off the downtrend we are currently in. If there was a hierarchy of reversal candles, the 1 day reversal and engulfing candle are at the top of the list.

Divergences are a great tool to identify when the trend may be approaching its end. Pair this with trendlines and volume and predicting some moves starts to seem too good to be true. At the end of the last major uptrend in Dec 2023, we had massive bearish divergence on the hourly time frames as we approached key trendline resistance.

View attachment 1036430

Higher volume and/or a gap up/down on the day after the reversal candle is another key sign of a reversal. For example, Jan 9th, 2023 the SP gaped up the day after a 1-day reversal formed. Or on July 20th, 2023 the SP gaped down after hitting the strong downtrend leading back to its ATH. I also like to see volume increasing towards the end of a trend.

After a prolonged up or downtrend, if unsure if the trend has reversed ask yourself these questions:
  • Has there been a significant reversal candle both on the weekly and daily chart?
  • Has the stock reached a well-respected long-term moving average or trendline?
  • Has volume been significantly increasing towards the bottom both on weekly and daily?
  • Have any divergences occurred?
    • This point by itself is not a signal of a reversal and should only be used in combination with other factors. Divergences can last for several weeks, even months past when they first begin to form. Even then they aren’t a sign the SP has reversed, rather a warning.
After a questionable reversal, if you are still unsure ask yourself:
  • Has the SP broken a well-respected trendline or moving average in the direction of the trend you believe may have been reversed?
  • Did volume increase during that break? (For example, Jan 23rd, 2023 when SP gaped up and volume increased following breaking the well respected 21 EMA. Or on Jan 3rd, 2024 when SP gaped down and volume increased after SP broke the well-respected uptrend line.
  • What is the bigger picture telling you?
When in doubt, wait and do nothing. The chart will provide more data soon enough.

This is great, thank you!

With the long bottom wick on Friday's candle (which may just be an artifact of the false news plunge) what is your sense of where we are now in the trend and heading to next, and are you positioning for upside, more downside, or flat?
 
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Curious anyone still selling Call next week?
I will be selling $200's if/when the premium makes it worthwhile. I ultimately want to reduce my TSLA share position because I don't want my life savings to be at the mercy of Elon's tweets. I have an additional +25 DITM calls expiring over the next 12 months as well, so I still have plenty of upside exposure.
 
Elon today:

“Tesla is an AI/robotics and sustainable energy company.”

Friday it was “25K car being cut is a lie”..paraphrasing..
8/8 will be RT day
now it’s trying to get AI more into the conversation, etc.

It could just be knowing that most likely this week the early narrative at least is most likely going to be:
“Tesla drastically cuts prices of top selling vehicle due to inventory glut!”


Frankly, I think they won’t stop at inventory only, no worse message to the market than you’re throttling factories.
 
Friday it was “25K car being cut is a lie”..paraphrasing..
8/8 will be RT day
now it’s trying to get AI more into the conversation, etc.

It could just be knowing that most likely this week the early narrative at least is most likely going to be:
“Tesla drastically cuts prices of top selling vehicle due to inventory glut!”


Frankly, I think they won’t stop at inventory only, no worse message to the market than you’re throttling factories.

Are you going/adding to near-term shorts?
 
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Friday it was “25K car being cut is a lie”..paraphrasing..
8/8 will be RT day
now it’s trying to get AI more into the conversation, etc.

It could just be knowing that most likely this week the early narrative at least is most likely going to be:
“Tesla drastically cuts prices of top selling vehicle due to inventory glut!”


Frankly, I think they won’t stop at inventory only, no worse message to the market than you’re throttling factories.
Just scanning the tesla.com here in Belgium, all the "available now" cars have discounts, even those as listed as "in transit", some of them quite substantial
 
For many of my friends with millions of dollars invested in Tesla and busy day jobs, it makes sense for them to buy and hold. Maybe sprinkle in some covered calls or buy puts as insurance from time to time. Guys like me though, who have much smaller bank rolls, more time on my hands, and a deep fascination with phycology and technical analysis, prefer to trade tsla in hopes of making more during rallies while avoiding downside risk.

From my experience, the most money and the highest success rate will be made trading with the trend and identifying reversal points. So how do you identify the direction of the trend and how do you know when it has reversed? Here's my 2 sense:

There are small trends inside of bigger trends inside of even bigger trends. Most people know that, but what they may not know is which trend they are going to trade.

Just before P&D (4/2/23) I mistakenly traded the short-term uptrend despite the larger trend still pointing down. The larger trend is more powerful until it’s broken.

View attachment 1036427

To identify the trend, I like using candle setups, moving averages, and trendlines. Any indicator that the stock has recently respected should be used. If the SP hits a trendline and immediately shows support/resistance that is a well respected trendline. That trendline should then be monitored closely. Same is true of moving averages.

There are times the SP is not respecting a trendline or moving average. The SP acts like they don’t exist and it goes above and below them with ease. Times like these I don’t pay much mind to the indicator since they aren’t well respected. Here’s an example during the Nov-Dec 2022 fall where the daily 21 EMA was well respected until it broke in Jan 2023.

View attachment 1036429

To identify when a trend may have reversed or is coming to an end, I like using candle setups, RSI divergences, and volume. Reversal candles are really the first major sign of a trend reversal. Most recently on Dec 28th, 2023 we had a daily bearish engulfing candle after an 8-week uptrend that kicked off the downtrend we are currently in. If there was a hierarchy of reversal candles, the 1 day reversal and engulfing candle are at the top of the list.

Divergences are a great tool to identify when the trend may be approaching its end. Pair this with trendlines and volume and predicting some moves starts to seem too good to be true. At the end of the last major uptrend in Dec 2023, we had massive bearish divergence on the hourly time frames as we approached key trendline resistance.

View attachment 1036430

Higher volume and/or a gap up/down on the day after the reversal candle is another key sign of a reversal. For example, Jan 9th, 2023 the SP gaped up the day after a 1-day reversal formed. Or on July 20th, 2023 the SP gaped down after hitting the strong downtrend leading back to its ATH. I also like to see volume increasing towards the end of a trend.

After a prolonged up or downtrend, if unsure if the trend has reversed ask yourself these questions:
  • Has there been a significant reversal candle both on the weekly and daily chart?
  • Has the stock reached a well-respected long-term moving average or trendline?
  • Has volume been significantly increasing towards the bottom both on weekly and daily?
  • Have any divergences occurred?
    • This point by itself is not a signal of a reversal and should only be used in combination with other factors. Divergences can last for several weeks, even months past when they first begin to form. Even then they aren’t a sign the SP has reversed, rather a warning.
After a questionable reversal, if you are still unsure ask yourself:
  • Has the SP broken a well-respected trendline or moving average in the direction of the trend you believe may have been reversed?
  • Did volume increase during that break? (For example, Jan 23rd, 2023 when SP gaped up and volume increased following breaking the well respected 21 EMA. Or on Jan 3rd, 2024 when SP gaped down and volume increased after SP broke the well-respected uptrend line.
  • What is the bigger picture telling you?
When in doubt, wait and do nothing. The chart will provide more data soon enough.
Nice post.!.. honestly, we just need to get about half a dozen of us in a room and we could just kill this!