In years to come traders and investors will look back at the Tesla chart in hindsight and think how easy it was. Those that traded it will know the reality, that this was a very volatile, choppy, fast moving, gapping up and reversing stock in real time. This was no easy trip to the money tree. Most Shorts thought it was so obvious and due for a reversal and got hurt shorting at the wrong time, the best day traders did pretty well with it. For most it was like riding a bucking bronco. Most investors couldn’t touch it because the valuations made no sense. Tesla did not meet the earnings strength of the old school pure CAN SLIM investors they had to buy based on the chart and relative strength. This was not an easy trade, for those who were able to trade it profitably or hold it through thick and thin I applaud you. The next step for the Tesla Lottery winners will be to escape it with their profits when the time comes.

The Five $TSLA trading strategies that have worked so far:

  1. Buying and holding it. So far the traders and investors that have been long and just waited long enough have won .

  2. Buying near the 20 day line has worked almost every time, there have been only three losses of this line since April.

  3. Selling bear credit spreads below the 20 day line has been a very profitable strategy with the large vega premium this year.

  4. Selling puts below the 50 day line has worked.

  5. Ignoring volatility and riding the long term trend with the 50 day as the stop has been the most simple strategy and most effective BUT the most difficult to sit through.

No one really knows what path Tesla will take from here whether today was a new high that will stand for the rest of the year or we zoom off to $200 next week.  But whatever happens next the road will likely be bumpy so let’s trade the chart and not our own opinion. Be careful.