Daily Tesla Trade Alert (1/19/24)

Yesterday, Tesla defied my expectations. I thought that the bulls would pour in and send the price higher. While I was right at the open, the day wore on, and Tesla’s price ended the day in the red. Oh well, that’s trading. But let’s see what it’s going to do today, shall we?

The 9-period is still below the 20-period. I’m not going to fight the trend today. Instead, I’ll look for a lower price target as well as a put option. Tesla’s Q4 earnings are coming out next week, and the general consensus is that they’ll be bad. Estimates peg that the year-over-year bottom line has declined 37.8%. While the cost cuts to the price of Tesla’s cars may have helped consumers, it didn’t jolt enough of an increase in adoption to help the revenue numbers.

On the intraday, yesterday the stock finished right around the midline of the VWAP. So, plenty of room for the price to move even lower today.

Trade Idea:

Price Target: $208.75

Options Contract: 16 FEB 2024 $205 PUT