First things first …
Mea culpa and mon dieu!
You know how sometimes when you see something and it looks a certain way even when it is not that way? My Tricida Inc. (Ticker: TCDA) straddle and stock idea from yesterday was incorrect!
The breakeven is closer to $6 and not $0.
I will close the trade idea today, take my small lump and move on.
A short straddle and long stock is a two short put position.
Duh.
Mon dieu!
Moving on to Tesla Inc (Ticker: TSLA) and a big move down after hours.
I think we see $200 this week, and I have a trade for it.
Every Major Stock Has Had A Huge Multiple Compression
Elon Musk is a brilliant dude.
TSLA went up 10 fold in the 2020-2021 timeframe and split multiple times.
There are not a lot of 10x revenue companies left with $500 billion-plus market caps. Just about every tech stock is going back to 2020 lows.
But I can think of one, TSLA, that isn’t.
I like put butterflies with a long strike at $200 for next week for low prices.
With sentiment so bad and the Fed spilling the beans on Nov. 2, I don’t see the 10x revenue multiples surviving too long.
Even the last one standing.
The Rundown
Power Income Trader
Bill closed out the iShares Germany Fund (Ticker: EWG) put spreads he bought for a 28% gain.
To Your Trading Success,
AG