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Investor's Business Daily

Investor's Business Daily

As Tesla's Big Run Hits The Brakes, This Bearish Option Trade Could Return 17%

Investor's Business Daily
Summary
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59% Informative

Tesla 's phenomenal run looks like it might be coming to an end with the stock down over 8% Wednesday .

With the stock under pressure, I'm willing to bet that it will trade sideways at best over the next few weeks .

Using the 520 strike as the short call gives plenty of margin for error if Tesla does bounce from here.

A Jan. 17 expiry bear call spread on Tesla using the 520 -525 strike prices could be sold for around $0.75 late Wednesday .

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