TSLA - weekly puts, hold 1-3 contracts overnight

You can see white dotted support line.
Larger trend is still down.
On 15min chart, 10sma is below 20sma, and stochastic is below RSI. Look for RSI to move below 50 line
On daily chart the RSI has come up to 50 line and it could fail and turn lower.
Take a good entry on 5-15 min chart.
Notice TSLA has had three gap up days. I use directional moving index more than volume bars. From what I see, buyers are fading and selling should start taking over. TSLA could gap open lower.
I only buy weekly options on TSLA because they are too expensive and volatile. This can also be advantageous if large price moves happen intraday or overnight. If you only have a few contracts then your real loss will be very small. Instead of thinking of loss in percentage, think real risk. If you buy one put option for $400, that is your max loss. If that one option is held overnight and turns into $1200, do you think the reward is worth the risk?

交易進行

I bought weekly 520 puts for $3.10

註釋

After yesterday's doji candle (daily chart), if today's candle is a bearish engulfing that is a sign for more selling.

註釋

This is a great place to open puts, with stock around 550-551 at 11:30 am.
If you see the 15 minute candle chart you can draw a downsloping resistance line. Puts should be sold if stock gets over that line.

交易進行

Added more puts for $2.10
I note the opening hourly candle today is bearish engulfing.
If you use volume on your chart, try replacing it with Directional Moving Index (set to 14 days so it matches RSI time period). You can read about this indicator online. Watch it on the 15min and hourly chart for this trade.

註釋

Sorry I forgot the market is closed this Friday. On 30 min chart you can see a triangular (pennant) consolidation. I am still trading on 15min chart and will sell all puts today. Mostly I am focused on preserving capital and finding clear buy/sell signals.

註釋

I closed puts on the 8th for a small loss. On 15min chart the stock price stayed up near resistance line and the daily candle was no longer bearish engulfing.