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TSLA Trade

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  • *Please note that the prices and other statistics on this page are hypothetical, and  do not reflect the impact, if any, of certain market factors such as liquidity, slippage and  commissions
  • *Please note that the prices and other statistics on this page are hypothetical, and  do not reflect the impact, if any, of certain market factors such as liquidity, slippage and  commissions
  • *Please note that the prices and other statistics on this page are hypothetical, and  do not reflect the impact, if any, of certain market factors such as liquidity, slippage and  commissions
  • *Please note that the prices and other statistics on this page are hypothetical, and  do not reflect the impact, if any, of certain market factors such as liquidity, slippage and  commissions
  • *Please note that the prices and other statistics on this page are hypothetical, and  do not reflect the impact, if any, of certain market factors such as liquidity, slippage and  commissions
  • *Please note that the prices and other statistics on this page are hypothetical, and  do not reflect the impact, if any, of certain market factors such as liquidity, slippage and  commissions
  • Transcript

    • 1. TSLA Intraday Trend Trade after Reversal off Double Bottom Deborah Knighton 1/14/2014
    • 2. SMB TRAINING is NOT a Broker Dealer. SMB Training engages in trader education and training. SMB TRAINING offers a number of products and services, both electronical (over the internet through smbtraining.com) and in person. SMB TRAINING also offers web-based, interactive training courses on demand. The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. SMB Training and SMB Capital Management, LLC are separate but affiliated companies. No relevant positions Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.”
    • 3. Big Picture • Aftermakinganall time highonDecember 31st, the SPY consolidatedforsevendaysthenreversedloweryest erdaymovingitout of itsconsolidation box. • Todaytheoverseasmarketsweremixed in Asia and were trading slightlylower in Europe prior tothe open. • Thefutureswere up thismorningonbetterthanexpectedretail sales and the SPY gapped up and continuedtotrendhighertherest of theday.
    • 4. The Big Picture SPY reversed below the bottom of the box yesterday on above average volume
    • 5. TradeStrategy • Trade a reversalon a longer time frame • Waitforreversalconfirmationtoenter • Getlucky! (Positive newscameoutafteralready in thetrade) • Tradetheintradayuptrend
    • 6. Intraday Fundamentals • TSLA tradeswith a Beta of 1.2, averagevolume of 10.6 million shares, and has an ATR of 7.4. • TSLA has a short interest of 50.7%. • TSLA isrankedby IBD as #1 in theautomotive sector and has a grading of 72 78 97 C D D+. • Therewererecallrumorscirculating in themorningthatwerelaterclarifiedthatiswasfor software updates, nothingto do withthefires. • A headlinethat Tesla had 6900 car deliveries in Q4 causedthe shares to pop. • ElonMusk’sappearanceon CNBC laterhelpedpropel TSLA shares evenhigherthroughouttheday.
    • 7. LongerTermTechnicals
    • 8. ShorterTermTechnicals October pivot low Downtrend Channel
    • 9. IntradayTechnicals After the news pop TSLA retraced back to VWAP where it caught a bounce, then trended up the rest of the day News Pop Retrace and bounce off VWAP Double Bottom
    • 10. Reading the Tape • I wasusingoptionsforthesetrades so I usedthe tape toget a general idea forwherebuyersweresupportingthebid and wheresellerswerestepping in whenever TSLA wasnear a keysupportorresistancelevel. • I noticedthat TSLA put in a doublebottomafterselling off thismorning, thentraded up tothe flat line whereitconsolidatedjustabove VWAP. • Todaywasprettyeasytoreadthe tape duetothevolatility and volume.
    • 11. Trade Management 6 1. 2. 3. 4. 5. 6. Bought 1 Call for 4.70 at 11:15 Bought 1 Call for 5.22 at 11:21 Sold 1 Call for 4.91 at 11:24 Bought 1 Call for 4.85 at 11:27 Sold 1 Call for 8.40 at 11:44 Sold 1 Call for 11.18 at 11:48 5 2 1 3 4 *Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions First Position usingtheJan 24’14 139 Calls
    • 12. Trade Management 2 1. 2. Bought 1 Call for 4.55 at 12:12 Sold 1 Call for 5.18 at 12:19 1 *Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions Second Position usingtheJan 17’14 142 Calls
    • 13. Trade Management 2 1 1. 2. Bought 1 Call for 3.50 at 12:21 Sold 1 Call for 4.97 at 12:37 *Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions Third Position usingtheJan 24’14 150 Calls
    • 14. Trade Management October pivot low 1. 2. Bought 1 Call for 4.63 at 2:30 Sold 1 Call for 5.05 at 3:00 1 2 Missed this move After closing third position, I took some tie to chill, eat lunch, and watch a Playbook presentation until about 2:00 *Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions Fourth Position usingtheJan 17’14 155 Calls
    • 15. Trade Management 2 1 1. 2. Bought 1 Call for 5.90 at 3:16 Sold 1 Call for 7.05 at 3:29 *Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions Fifth Position usingtheJan 24’14 157.5 Calls
    • 16. Trade Management 3 points October pivot low 2 points 4 points 9.5 points 1.5 points 20 points total captured *Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions Summary of IntradayInvolvement in Calls
    • 17. TradeReview • I wasveryhappywithmyentries and exitstoday trading TSLA. • I struggledwithwhetherthetradesweregoingto be intradayonlyor swing. I am contentwithmy final decisiontogo flat TSLA at theend of theday. • Aftergiving up allmyprofitsyesterdayonmy swing positions, today I wascompletlyokaywithmissingoutonsome of themoves. There are plenty of tradesoutthere and I am muchlessstressedwhen I am in thetradeonlywhenitisgoingtherightway. • I usedtwocalls in thefirst position toscale in and out. Later I onlyusedonecall as thetradeswerebasicallymomentumscalptrades. • Thesetrades are scalable. Whenmy portfolio increases I can put more money at risktoenterthetradeswith more calls and addtothe positions.

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