Tesla (TSLA) fell yesterday after The Wall Street Journal reported that sales over the last nine months had fallen 26%. The stock was down nearly 6% on the news, and our puts were in great position. But after CEO Elon Musk tweeted this morning that those sales numbers reported in the Journal are incorrect, the stock rebounded and is up over 7% today.
Our puts have been burned in the process, but I want to hold them a bit longer. Wtih expiration still a few days away, we may be able to get out at a better exit point given the uncertainty going into the Federal Reserve meeting tomorrow. Any bad news that comes out of it could easily weigh on the market and the stock. In addition, TSLA is now off its highs of the day. I’m watching the options closely and will be in touch right away when it’s time to sell. But for now, I recommend that you continue to hold the TSLA October $227.50 puts.