TSLA | Tesla Inc. Trading Journal with VantagePoint

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, Forex and ETFs. TSLA in focus today….

This journal entry looks at the recent market movements of Tesla Inc. NASDAQ: TSLA.

VantagePoint Trading Journal TSLA [Update]

Earlier this week we discussed a potential bearish play in TSLA. Here is how the rest of the week played out for ever-popular stock:

The bearish trend in TSLA continues with prices closing on Thursday at $351.09.

As you can see, TSLA continued its bearish trend throughout the week as the VantagePoint indicators predicted.  In this case, the spread that we initially sold for a $1.00 credit could be bought back in for $0.27 this morning.  Depending on one’s risk tolerance, you could let the spread expire worthless (it expires on Friday the 29th of September).  Remember, a trader’s risk tolerance is their own and they must adhere to their own risk profile.

VantagePoint Trading Journal TSLA

The market continues to struggle to try and find itself as it has for the past few trading sessions. This is not a terrible thing for the shorter-term trader who has a powerful tool like VantagePoint and its artificial intelligence-backed predictive indicators at his or her disposal. Let’s use VantagePoint to take a close look at sometimes market darling and sometimes market goat Tesla Inc. (TSLA).  Here’s a chart that may give traders an opportunity to take a closer look:

image of TSLA trading diary with VantagePoint
VantagePoint indicated a bearish crossover in TSLA on 9-21. This could present a new bearish opportunity for stock and options traders.

You will note that VantagePoint indicated a bearish crossover on 9/21/17 (where the blue predictive indicator crossed below the black simple 10-day moving average). You can also see the VantagePoint neural network artificial intelligence indicator was already in the zero (0) position from a day prior.  Traders can use these indicators together to identify and confirm a new bearish scenario in TSLA.

According to the data on the chart, stock traders could be interested in a short position.  Traders would enter a position after seeing the crossover and confirmed neural index. Doing so could help maximize profit potential with continued downward movement to come.

There is a multitude of other ways to play this bearish scenario. Options traders can also utilize the VantagePoint chart for a potentially bullish play.

Using VantagePoint to trade options

One way to do this would be to take the opinion that perhaps TSLA is not going to simply fall out of bed but at the very least TSLA is not going to go up in the short-term.  In this case, a credit call spread such as the weekly 9/29/17 expiration 347.50/350.00 call spread collecting $1.00 in premium could accomplish this goal.  As long as TSLA stays below 347.50 at expiration (9/29/17), the trader will collect all of the premium.  That is the maximum profit whereas the maximum loss would be the width of the spread ($2.50) less any premium collected ($1.00) or $1.50.  The break-even price would be $348.50 and a trader would be at risk for 4+ trading days. This creates a risk to reward ratio of 1.5:1.

Utilizing the VantagePoint platform and its predictive software can assist any type of trader to better manage their positions.

image of vantage point software banner

tylerr@tradermarketinggroup.com'

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »