Here’s an update on $TSLA, and a new trade idea on $DKNG (November 25, 2020)
DKNG TSLA
I put DraftKings ( NASDAQ: DKNG ) on our active trade list today. Here’s the thing, this is where I bought the stock, 49.88, and it just started peaking almost to $50.00. The high here was 50.05 last Friday and so I thought I would get an early jump on the stock because it’s back above the 50.
It seems like, not so much that this is a stock that’s going to scream higher, it might but it might not. I liked the fact that it was a stock that gave me a low-risk trade; because I could look at this stock, the low is 46.61, that’s the low. And so I am happy to be with this stock, I am happy to stay in this stock unless it starts trading below 46.61.
If it starts pulling back like that, if it starts pulling back here, well then it’s falling out the bottom of the box and I don’t want to be long this stock so that’s why I put my stop where I did. And as long as this stock stays above that level I will be long this stock, at least for a while. But it’s going to need to start performing right away; that’s what I have got to have my stocks do so I thought I would give this trade to you.
Also another thing, Tesla ( NASDAQ: TSLA ) continues to defy logic, it’s going up too fast, that’s what you could say. People have been saying that for a 1000 percent so I will just say this: As long as this stock is moving out of this little pinch and pop, this little volatility squeeze, I will want to stay long the stock. It is very difficult to imagine, just on pure momentum that the stock is not going to hit 600.00, probably pretty soon.
That’s just the way I see it, that’s the way I am trading it. I am long some stock, actually a fair amount, but I am actually short some calls against it to hedge myself a little bit and take advantage of time decay and the hope strategy, which many people employ.
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