Lately, Elon Musk seems to be living like a reality TV show star, but whomever is writing the script needs to be fired – and quick.
Musk has found himself in hot water over his recent Twitter tirade, as he took the stage to voice his opinions against the mainstream media.
This new online rampage has led many to dub this the “downfall of Tesla.”
And even you may have found yourself wondering whether Tesla (a stock once coveted by man) is even worth trading these days, too…
The answer is yes…
But it doesn’t involve touching a single share of Elon’s stock.
Telsa in Turmoil
Now look, personally I love my Tesla – it got my family and I safely away from Hurricane Irma. But the truth is, just because you love the products a company produces doesn’t mean you have to love the stock.
And when it comes to this stock, there’s just not a lot to love right now…
For instance, on January 2, 2018, TSLA kicked off the year at $312. Fast forward to yesterday (May 29, 2018), and the stock closed at $283.76. That’s a decline of over 9%.
But it’s not just financial problems dragging down this company…
Two Other Reasons Tesla is Facing Big Problems
1. Elon’s Twitter Meltdown
Elon Musk took to his smartphone to go on a rant addressing his problems with the mainstream media. Musk announced that he had full intentions to create a website dedicated to rating journalists and news organizations based on their “supposed truthfulness” – a site that, in fact, has already been created in Russia.
This grew from the recent coverage on Tesla, which including a daunting report about factory safety. But outside of Musk’s “fanboys” his message wasn’t well-received. Because to be honest, threatening the free press is never the best move…
2. Concerns Surrounding Tesla Model 3
You may have seen the recent news that a Tesla set to auto-pilot crashed into a parked police car– but that’s not the first complaint to come forth. Many noted that the Model 3 has long emergency stopping distances, difficult-to-use controls, and a harsh ride. All of these problems already prevented the Model 3 from getting a recommended buy rating from Consumer Reports.
This, combined with the bad press, makes a not so great support for the stock and its investors.
But regardless of the bad rap, you can still win big off Elon Musk’s latest temper tantrum…
Two Ways You Can Play Tesla
1. Selling Put Options
Selling puts is a short-term strategy you can use to generate some fast, monthly income. Ideally, you’ll want to sell “out-of-the-money” puts on stocks you want to own that are trading higher than the strike price of the put option you sold. A put option is out-of-the-money when the strike price is lower than the current stock price.
And when I say fast – I’m talking cash in your pocket in as little as four days. Take my Fast Fortune Club members, for example…
Last month, I sent my Club members two put selling trade recommendations – one on Tesla Motors, Inc. (TSLA) and one on Alibaba Group Holding Ltd. (BABA). We sold out of the money (OTM) weekly put options on both stocks that my system indicated were overvalued. And just two days later, we bought them back for a combined $339 profit.
And anyone who sold multiple contracts on each stock did even better. To give you an idea, you could have walked away with an extra $3,390 in your pocket if you sold 10 contracts on each.
But we’re just getting started…
Tomorrow, I’m going live to reveal a major change about to happen in the markets – and an opportunity that could deliver an easy triple-digit profit.
The action starts right at 12 noon Eastern – and you don’t want to miss it.
So click here to learn how to reserve your spot now.
2. Creating a Calendar Call Spread
A “calendar spread,” or also known as a “time spread” doesn’t necessarily deal with two options with different strike prices on one order, but instead involves two options with different calendar expiration dates (the strike prices can be the same or slightly different). You’d buy-to-open an option with an expiration out at a specific date of your choice. Then, you’d write (or sell) an option with the same strike price normally, but you wouldn’t have to use a shorter expiration date.
Keep in mind that this strategy is similar to writing covered calls in that you’re using the longer-term option as a proxy for the stock. You’re still selling a call option, but you’re selling it against another longer-term option on that stock.
So let Elon Musk keep Tweeting away – because we’re going to cash in big on this downward spiral.
Good Trading,
Tom Gentile
America’s No. 1 Pattern Trader
P.S. It’s not just my Club members that have had the chance to make some fast, easy cash… You see, I’ve developed a way for you to turn 4 ½ minutes at lunch every Monday – into a shot at $1,000… $2,000… even $5,000 payday by Friday. When those massive gains hit, you can literally sit back and watch the cash roll in without lifting a finger. Click here to learn more.
