In this latest video, Chicken Genius aka Ken Teng predicted that Tesla’s share price may reach $60 in the coming months. This is due to Elon Musk going onto Twitter space and talking about prioritizing car sales over margins, which means Elon wishes to sell every car that Tesla made and the only way is to reduce price. When the price of Tesla is reduced, the profit margins will be impacted. Ken talked about demand destruction and Tesla is at the most dangerous part of the cycle where earnings have not been priced in yet.
Tesla’s share price has dropped almost 70% year to date. I remembered Tesla was still holding strong just 3 months ago, where the whole market was falling but Tesla was rising. Thereafter, the disappointing AI day and Q3 earnings plus the whole Twitter buyover caused the stock to crash.
For the past few months I have been generating returns through selling Covered CALL against the Tesla shares that I own, together with my Vertical Spreads positions.
My Profit/ Loss Table (Wheel Strategy)
My Profit/ Loss Table (Vertical Spreads)
Here are the details of my trades.
With Selling Covered CALL
With Vetical Spreads
I hope this sharing gave you a good idea on how to trade if Tesla’s share price continues to plunge in the coming weeks/ months.
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Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading
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Struggling with inflation and high cost of living? Try these 10 methods to help you save money and accumulate more savings for investments or rainy days.
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Excited to start your trading journey or perhaps try out with a paper trading account to build your confidence in trading? Check out this step-by-step to help you get started:
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Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts on executing these trades:
Also, check out my trading strategies in different market conditions, whether it is bullish, bearish or volatile:
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I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
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I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sense of the percentage yield I get out of my gains:
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This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
I Cut $135,715 Worth Of Losses In The Last 1.5 Months
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