Mike Khouw: Cybercabs are a game changer—here's how I'm trading Tesla
The strategist at YieldMaxETFs breaks down how a bullish bet on Tesla could pay off for options traders.
TL;DR
- Tesla's Cybercabs, featuring a futuristic, driverless design, have been seen in Northern California.
- The Cybercab's appearance is considered a potential catalyst to re-evaluate Tesla's market position.
- A specific options trading strategy is outlined: buy TSLA Dec 390 calls, sell Oct 23 weekly 425 calls, and sell Oct 23 weekly 330 puts.
- This strategy aims to profit from a potential rise in Tesla's stock price, with the sale of shorter-dated options designed to reduce the net cost and benefit from time decay.
- Technical indicators for Tesla (MACD, DMI, RSI) are currently bullish, supporting a long call position.
- The trade's profitability depends on Tesla's stock price staying above the breakeven point of the long call by expiration, with different outcomes possible based on price movements.
- While Waymo has established scale, Tesla's ability to deliver EVs at scale is highlighted as a strength.