TTD Plays for the Short Term

I am thinking lately about short term plays. I’ve picked a couple good bounce levels to pick up day/swing trades in the past 2 weeks that have obviously made me an expert at this. So I feel entitled to do this.

When I play options, I am typically playing Out-of-The-Money (OTM) due to the size of my account, but MGA has the ability to buy At-The-Money (ATM) or even In-The-Money (ITM) options. These are more expensive, but offer bigger reward if the play goes in your favour. Sort of like sitting at the high roller table, instead of the $5 table with all the toothless grannies losing their social security check. But normally, I am sitting at the $5 table hanging with the toothless grannies, because that’s what Miller Lite White Trailer Trash does and has more fun.

But I digress…

Three plays I am looking at right now:

Telsa (TSLA)

I know Cody & Jason like to stay away from this, but I think this is one of the strongest plays ever right now. I have made big money on TSLA in the past, purely because it is so volatile. Sort of like the world’s biggest penny stock.

In the past, it has been primarily a gamble as to whether it is going to go up or down in a given day. But now, there is an absolute certainty TSLA is going to rise to all time highs and beyond with his position/brand within the Trump organization. It doesn’t matter what the company TSLA does right now, so long as Elon continues to make headlines.

For the past week, TSLA has been very clearly trading sideways between $335 and $348.50. It broke this channel a couple times, but it has been very consistent in returning.

(I wish we could put charts in here)

Figure 1TSLA 30-minute chart – November 11-21

For a very short term play, I think we could buy ATM TSLA calls with 2-3 week expirations, whenever it hits $335.

If we want to go longer term to expiration, we could buy OTM calls (I would stick to $350, 365, 370) that expire in January(?). I would buy 1 or 2 now, regardless of stock price, and look to add more as the stock drops toward $330.

I would say this theory would be tested and should be reconsidered for further capital deployment or exit, if stock price reaches $320 at any point.

I was going to write about two more opportunities right now, but I need to eat dinner.