Very Bullish General Motors gave us an entry opportunity today. A shallow pullback into oversold status in the face of strong Chaikin Money Flow has resulted in a Money Flow buy signal. The "market" is in agreement with the Power Gauge through the positive Relative Strength reading.
This morning, we're adding GM to our Chaikin Power User portfolio. Meanwhile...
Very Bearish Tesla Motors heads into earnings this afternoon rated Very Bearishly, with negative Money Flow and relative strength indicating that the market is on board with an earnings miss. Because Tesla has sold off into the announcement, we'd favor an out of the money call spread. A defined risk, vega negative trade allows us to take advantage of implied volatility collapse once the announcement is made without getting hammered too badly by a positive earnings surprise and a stock move that goes against us.
Here's the trade we like (it lasts 3 days): SELL -1 VERTICAL TSLA 100 (Weeklys) NOV1 15 225/227.5 CALL @.73 LMT
Here's the trade we like (it lasts 3 days): SELL -1 VERTICAL TSLA 100 (Weeklys) NOV1 15 225/227.5 CALL @.73 LMT
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