jay_beckner

I play poker and trade options, seeking edges from study, reflection and analytics.

#020 TSLA Calls

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Trade Details: Bought to open 2 May 20th weekly Tesla Inc (NASDAQ:TSLA) 322.50 calls for $2.15, $436.04 total cost (87.2% of account), 4 days to go. The trade executed at 11:12:43 when the stock was approximately $318.60.

Potential: Targeting a 50% gain on this position as the stock trades toward point D in the harmonic bat pattern (see chart below). I plan to swing into a put position with the proceeds. If this pattern deteriorates by end of day, I will take a loss and move on.

TSLA 30-min chart featuring a bearish harmonic bat pattern.

TSLA 30-min chart featuring a bearish harmonic bat pattern.

Thesis: In the short-term, the market remains resilient; the bearish setups that I've been tracking haven't materialized, and the SPY and tech sector continues to grind higher. I'm fearful of a bull trap here, so I am happy to participate with this short-term long position.

Note: I had too much fun yesterday learning several harmonic patterns in addition to the bat (e.g. ABCD, Gartley, butterflycrab and shark). Clearly, I'm anxious to put the new knowledge to work... I've also been working on rules for shorter-term trades, a strategy that wasn't addressed in my latest strategy post.

#020 TSLA Calls Closed Loss

#019 TSLA Puts Closed Loss