IA Trade Alert (Patreon)

I just bought more Tesla at $228 even - may not be the bottom and my goals are not your goals but my plan was to layer in - harder per layer as we go. First layer 250, second layer 230, and so on. 

I got another option position $220 strike for Jan 2025 - breakeven $241 by Jan 2025 

Net debit is $21 - sold the puts and bought the calls - rem this you should only do if you have lots and lots of margin... rem I have a large HODL bag I sell puts against. 

The stock of Tesla ($TSLA) keeps dropping (down 20% compared to NDX's 5% since the 2nd quarter earnings report on July 19). This drop is due to concerns about prices, meaning people are worried that price cuts seen in China might happen everywhere. I personally think China's situation is unique, with deflation affecting all industries and a very competitive electric vehicle market. The specific pricing strategy and market conditions in China probably won't be the same worldwide.

In the third quarter, demand for Tesla in China is still strong. The most recent data shows that there were 14,000 insured units per week from August 7 to August 13. They are taking orders for Highland there now. Additionally, deliveries of the Cybertruck is already underway, which is expected to have a positive impact on Tesla's overall performance, much like what happened in 2020 when the Model Y launched.

Considering the stock's current price-to-earnings ratio, 40% Earnings CAGR, and my 2024 earnings-per-share estimate, Tesla is a $450 stock. Buying at half that for me is an oppty. Rem I loaded up big time when it was low 100's and I cannot find a better risk reward.