Tesla To $500!? Here's What To Watch Out For This Week

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Hey Options Trader,

The Nasdaq-100 made a new all time high today as rotation has came back into Tech. Unfortunately, Nvidia didn’t benefit from this move up, but some other stocks did. Tesla saw another 5% up day today and it looks like $500 is approaching soon. How long will this bull run last before the next big downturn?

Here’s What We Are Covering:

1. $QQQ and $VIX - How long could this melt up rally last? Are we done yet?

2. Tesla $500? Here’s what to watch out for.

3. $PLTR - why didn’t we run up further after the news of being added to QQQ?

$QQQ and $VIX - How long will this melt up rally last?

$QQQ finally some rotation back into it today. We continue to push higher with no fear in sight. If we look back to the last extended melt up rally we had the $VIX stayed depressed for around 3 months. This means extreme greed took place for quite a while and I think we will see the same thing throughout most of January.

My take is that QQQ will see a point of overextension and FOMO around the $550-$560 area before we finally revert back to fair prices. I think this will happen in mid January.

This is how i’m playing it. I’m letting my Apple, Google and potentially Amazon shares get called away to shore up cash for the next dip opportunity which I expect to be around late Jan, early February.

When this pullback happens, I will add more QQQ LEAPS, and sell cash secured puts heavily in great stocks that I already own.

Just know that the pullback could always come earlier, so don’t be surprised if on January 1st we get it. I’m warning you in advance.

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Tesla To $500?? Here’s what to look out for!

Tesla has seen quite an incredible run up! I only sold 1 cash secured put and I was expecting a pullback to sell more, but that didn’t happen. I’m definitely not chasing the hype here. I will wait until we get some selling pressure and hopefully get $1k - $2k in premium selling the $400 puts.

We are overextended outside of the top bollinger band, but can easily go up to that $500 psychological level. Depending on your risk tolerance, you can do what you please with this info.

Tesla is a new income generator for me and I don’t want to hold the stock for to long if assigned.

Current position: 1 Sell $380 Put for $1260 in premium collected.

Palantir Inducted Into $QQQ But No Run Up Today?

This is the action I prefer to see on Palantir. The more this stock goes up in a short period of time, the more unsustainable the move. As you can see we are finally consolidating towards the middle bollinger band and following the established trend line.

I may add more LEAPS on consolidation, but I do enjoy collecting the income on the Cash Secured Puts. I already have 15 LEAPS on PLTR.

I expect the next set of earnings to be blowout, with all the new contracts they are securing.

NEXT EARNINGS: Potentially FEBRUARY 3rd

My $PLTR Wheel Strategy For Passive Income

Hope your week goes well!

-Ryan