Tesla Destroys the Bears – THIS Is My Game Plan Now

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SPX futures are +25 after shaking the tree down to the 21-day yesterday at 5762.

SPY broke $580.50 and hit a low of $574.41 to shake the tree. I was long SPY puts and short premium in anticipation of that. Today SPY is up as we see if $580.50-$581.75 serves as stiff resistance. I’m not bearish — I just think we can be stuck in a range for a while. I shorted some SPY around $580.75 pre-market.

Now let's dig into some individual names, starting with the topic of today's newsletter:

TSLA is up 14% on its impressive earnings report, pushing the bears back, big time. The stock has been stuck in a range trade since the 2021 top, but we could see $260 to $271 before the election, though of course that depends on what kind of follow-through we see.

I'm coming in long 11/8 $240 calls. This is what I'm looking to do:

  • Sell 25% of the calls to lock in immediate profit
  • Turn 25% of the calls into a spread to reduce risk
  • Hold 50% to potentially benefit from more upside

I also played the stock through the $224 gap yesterday afternoon.

AAPL: there is a lot of debate about how the quarter will turn out. There was a report yesterday about lower iPhone 16 orders. It held $227-ish. I'd avoid it until closer to the print. Actively, it's tricky. But it's fine as a long-term investment.

NVDA held the 8-day yesterday, giving us $137 as a new point of reference moving forward. That needs to hold. I don't think it runs away, but it's still a focus. Pivot resistance is $142, then $143.71.

IBIT held where it had to yesterday, giving us the $37 area as new support. I got bigger and I'll trim some this morning.

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*Scott Redler Positions Disclosure as of 2024-10-24 at 8.26.56 AM

 

 

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