July 10, 2019

Tesla Credit Spread Discussion

After achieving record deliveries in the second quarter, Tesla (Ticker: TSLA) is getting ready to increase EV production at its factory in Fremont, California. “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments,” wrote automotive president Jerome Guillen. Tesla has said it plans to produce “significantly” more than the 360,000 to 400,000 vehicles expected to be delivered in 2019, easing concerns over demand for the company’s electric cars.

Source: Seeking Alpha

This sent the stock up over 3%.  It has come to significant resistance here and the short-term news is out.  This presents us with an opportunity for a credit spread.

Click the video below as I discuss this in more detail.

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about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

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