TSLA is moving like a rocket ship

BY ANDREW GIOVINAZZI

September 3, 2024

Yo Pit Crazies,

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Labor Day is over and with it the end of summer. Well what did I do this weekend? I had to move a rockwall that was in the way of the shed I wanted to build. It was a big rock, probably over 500 lbs. I used a metal bar, come-along winch, chains and my Ford Ranger to move it. But what really made it roll was the 5 in. PVC pipes that were 5 ft long.

Put it this way. The rock was so heavy it would not move just having the truck pull it. The friction and weight make it crazy heavy. Up on the rollers, I could almost kick it down the driveway.

1 Year Realized Vol in TSLA

Realized Volatility is similar. I don’t want my options getting dragged like the rock with the truck. I want the options to slide and move.

So how do I know 60% realized volatility is a good thing?

Let’s see why.

Realized Volatility is rising in Tesla Inc (Ticker: TSLA)

Remember that 60% volatility is almost 4% per day. On a stock like TSLA, that is near $8 per day. 90 day volatility means the average close to close move over the last 90 days. That is crazy high realized volatility and there is no sign that it is slowing down.

Option implied volatility is only in the low 40’s. This should be a trade with some “rollers” under it. We will take a look at it in Trading Desk for one of our Weekly Trades. If the market wants to rip like it did Friday, I would rather ride it.

On rollers.

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To Your Trading Success,