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Short-Term TSLA Price Movements - 2016

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For longterm investment, focus on longterm fundamentals.
For short term trading, chart and technical indicators are way more reliable than news and fundamentals. If you can't tell if you are investing or trading, I think you probably should do smaller size to gain experience first. Don't use margin.

Yesterday weekly $210 Call closed at $3. It traded around that value the whole day. Right now it's at $0.45. Losing 80% of the money in a day. This happened after a stellar QR with bright future. Imagine if the QR were not so good. I have seen this with many stocks. Buying short term calls or puts does not work well statistically. There are a few situations that options can be useful. I talked about them in an earlier post.

If you keep buying high selling low, eventually your account will shrink to zero and you are only helping the manipulators.

Update:
I am not trying to predict what will happen to the stock later today or tomorrow. The $210 call may turn out to be a big win from now to the end of Friday, or drop to zero. I can not predict that.
I am hoping to help the inexperienced investors to quickly gain the basic knowledge so you don't lose your hard earned money. There are many intelligent and experienced investors on this forum who know a lot of good stuff. You can learn from them too.
 
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For me the most plausible theorie is that big institutional investors see the current situation (over 200 sp) as the best chance for a very long time to realize earnings.
For them it is clear that they will not see a substantial dividend during mid-term future. Additionally the next quarters will be tough and the current quarter result can probably not be repeated until 2018. So if you take those two points, you can come to the conclusion that it's the right time to leave now.
 
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From a other forum

The Hillsborough Area Regional Transit Authority announced it is partnering with electric car maker Tesla (NASDAQ: TSLA) to create an Uber-esque ride hailing service for transit users.

http://www.bizjournals.com/tampabay...artners-with-hillsborough-transit-agency.html

It's an interesting idea to partner up whith local communities to solve the self driving thing, after all they know best what they need

(bolding of quoted post added)

nice catch. first example I've seen of Tesla's stealth massive strategic advantage breaking the surface :)

hints in here... I'll add one more hint, "utility"

Speculative Tesla owned Uber-like service impact on Tesla's Mission and Valuation?
 
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SP is quite predictably unpredictable in the short term, regardless of the news it seems. A lot of you know much more than me about stock movement and manipulation. Can shorts really have this much power over the stock price on a day like today with so much volume? I have my doubts and suspicions at the same time. However, sentiment about Tesla is still more positive than it was before the Q3ER. That should mean more positive pressure on the SP over time. The trading range TSLA has been in should at least nudge up a bit.
People here blame the shorts way too often. More often it's the lack of big buyers.
 
For longterm investment, focus on longterm fundamentals.
For short term trading, chart and technical indicators are way more reliable than news and fundamentals. If you can't tell if you are investing or trading, I think probably should do smaller size to gain experience first. Don't use margin.

Yesterday weekly $210 Call closed at $3. It traded around that value the whole day. Right now it's at $0.45. Losing 80% of the money in a day. This happened after a stellar QR with bright future. Imagine if the QR were not so good. I have seen this with many stocks. Buying short term calls or puts does not work well statistically. There are a few situations that options can be useful. I talked about them in an earlier post.

If you keep buying high selling low, eventually your account will shrink to zero and you are only helping the manipulators.

I was just thinking about those who bought call options hoping for a risky return. Today is a slap in the face and very opposite from what should happen. TSLA used to be a good money making play. Not so much anymore.
 
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But what evidence is there of that? I think investors and analysts are just waiting for the news reg SCTY to come out. Which is the right thing to do for an analyst of course. No need to rush.

The evidence is lots of volume, decreasing number of shares available for shorting without a sharp price increase.
 
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People here blame the shorts way too often. More often it's the lack of big buyers.

Fair point. I see many institutional investors just waiting for confirmation of tomorrow though to re-assess their strategy with steering committees and what not.

Either way, yesterday's figures dispelled the biggest myth that a company cannot be profitable with EV's and also shut a couple people up (for the time being).
 
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(bolding of quoted post added)

nice catch. first example I've seen of Tesla's stealth massive strategic advantage breaking the surface :)

hints in here... I'll add one more hint, "utility"

Speculative Tesla owned Uber-like service impact on Tesla's Mission and Valuation?

This article is about same ppl but came 3 days earlier and didn't mention Tesla. Also far more interesting. Decidication of a closed road for autonomous transport.

http://www.bizjournals.com/tampabay...borough-transit-eyes-a-driverless-future.html
 
The evidence is lots of volume, decreasing number of shares available for shorting without a sharp price increase.

But why Fidelity specifically?

Also I'm not a fan of tracking shares available for shorting. Does every broker report shares only for their clients? A single data point could be misleading. I think short interest rate is a better indicator. If it goes up that would indicate few shares available. If we are still around 1% then I don't think shorts would have any problem finding shares.

And I agree with DaveT. Shorts definitely manipulate the market short term. Especially on a day like today where I can see a few short sales in key moments (to prevent crossing 200SMA for example) affecting the stock trend. But we give them too much credit.

If yesterday's results have changed the momentum we will see analysts and big buyers coming in that will negate any short selling.

Evidently the flood gates haven't been opened yet.
 
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