Why I think Tesla stock will cross $1000 soon
Tesla has been an issue of debate as for reaching above the $900 levels and getting back down.
The reason for this downfall of tesla is due to the fact that the common shared knowledge that it will cross the thousand mark. Since, everyone knew this information. It cannot be true because everyone have taken longs and calls of tesla for 1000 mark, and more even for 1200 upto 1500. Which bound to make it volatile and fall because everyone cannot be millionaire with the same directional position. We know for the fact that in stock market, if one loses other gains. Thus, those who have bought their positions for puts and shorted calls were the biggest winner during that period.
However, recent activity suggested that the calls volume has been decreased and there is a increase in volume activity of puts for tesla. The fact that everyone knew that tesla will cross 1000 has been erased from the minds of people. Thus, when there is no certainty of a position in stock it is mostly likely to act on that direction. Which in this case is positive.
I suppose it's a great opportunity for buying calls and longs for tesla. Since I calculated its lower value to be around $584, which the stock reached during the pre market session. It is very likely that it will go upward from now on and will cross the $1000 mark, might even cross $Tesla(TSLA.US$ $1200 value mark.
Current price of tesla : $620
The reason for this downfall of tesla is due to the fact that the common shared knowledge that it will cross the thousand mark. Since, everyone knew this information. It cannot be true because everyone have taken longs and calls of tesla for 1000 mark, and more even for 1200 upto 1500. Which bound to make it volatile and fall because everyone cannot be millionaire with the same directional position. We know for the fact that in stock market, if one loses other gains. Thus, those who have bought their positions for puts and shorted calls were the biggest winner during that period.
However, recent activity suggested that the calls volume has been decreased and there is a increase in volume activity of puts for tesla. The fact that everyone knew that tesla will cross 1000 has been erased from the minds of people. Thus, when there is no certainty of a position in stock it is mostly likely to act on that direction. Which in this case is positive.
I suppose it's a great opportunity for buying calls and longs for tesla. Since I calculated its lower value to be around $584, which the stock reached during the pre market session. It is very likely that it will go upward from now on and will cross the $1000 mark, might even cross $Tesla(TSLA.US$ $1200 value mark.
Current price of tesla : $620
Good luck and happy trading to all mooers.
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AnonymooOP : Relink to the post from 5 months ago. I assume it's not too much significant now, since the market already crossed all time highs but I assume there are other factors to this stock too.