TSLA Intraday Trend Trade
after Reversal off Double
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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.”
• After making an all time high on December 31st,
the SPY consolidated for seven days then
reversed lower yesterday moving it out of its
• Today the overseas markets were mixed in Asia
and were trading slightly lower in Europe prior to
• The futures were up this morning on better than
expected retail sales and the SPY gapped up and
continued to trend higher the rest of the day.
The Big Picture
SPY reversed below the
bottom of the box
yesterday on above
• Trade a reversal on a longer time frame
• Wait for reversal confirmation to enter
• Get lucky! (Positive news came out after
already in the trade)
• Trade the intraday uptrend
• TSLA trades with a Beta of 1.2, average volume of 10.6
million shares, and has an ATR of 7.4.
• TSLA has a short interest of 50.7%.
• TSLA is ranked by IBD as #1 in the automotive sector
and has a grading of 72 78 97 C D D+.
• There were recall rumors circulating in the morning
that were later clarified that is was for software
updates, nothing to do with the fires.
• A headline that Tesla had 6900 car deliveries in Q4
caused the shares to pop.
• Elon Musk’s appearance on CNBC later helped propel
TSLA shares even higher throughout the day.
Shorter Term Technicals
October pivot low
After the news pop TSLA
retraced back to VWAP where
it caught a bounce, then
trended up the rest of the day
bounce off VWAP
Reading the Tape
• I was using options for these trades so I used the
tape to get a general idea for where buyers were
supporting the bid and where sellers were
stepping in whenever TSLA was near a key
support or resistance level.
• I noticed that TSLA put in a double bottom after
selling off this morning, then traded up to the flat
line where it consolidated just above VWAP.
• Today was pretty easy to read the tape due to the
volatility and volume.
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
First Position using the Jan 24’14 139 Calls
Bought 1 Call for 4.55 at 12:12
Sold 1 Call for 5.18 at 12:19
Second Position using the Jan 17’14 142 Calls
Bought 1 Call for 3.50 at 12:21
Sold 1 Call for 4.97 at 12:37
Third Position using the Jan 24’14 150 Calls
October pivot low
Bought 1 Call for 4.63 at 2:30
Sold 1 Call for 5.05 at 3:00
Missed this move
After closing third position, I took
some tie to chill, eat lunch, and
watch a Playbook presentation
until about 2:00
Fourth Position using the Jan 17’14 155 Calls
Bought 1 Call for 5.90 at 3:16
Sold 1 Call for 7.05 at 3:29
Fifth Position using the Jan 24’14 157.5 Calls
October pivot low
Summary of Intraday Involvement in Calls
20 points total
• I was very happy with my entries and exits today trading TSLA.
• I struggled with whether the trades were going to be intraday only
or swing. I am content with my final decision to go flat TSLA at the
end of the day.
• After giving up all my profits yesterday on my swing positions, today
I was completly okay with missing out on some of the moves.
There are plenty of trades out there and I am much less stressed
when I am in the trade only when it is going the right way.
• I used two calls in the first position to scale in and out. Later I only
used one call as the trades were basically momentum scalp trades.
• These trades are scalable. When my portfolio increases I can put
more money at risk to enter the trades with more calls and add to