Medium term
Trade view / 19 August 2016 at 7:58 GMT

Tesla could be running out of power

Product Manager Futures and Options / Saxo Bank

The shares of electric vehicle maker seem to be stuck in the rut with strong resistance near $236. On August 1 shares failed to break above this level and have slowly drifted down to current levels of $222. We see further pressure over the next few weeks especially as earnings are out and the merger with Solar City is a fact now. 

Markets have been relatively quiet especially in the US where the Fed seems to be split and many traders are still on a holiday that could extend with Labor Day. 

TSLA Daily

Source: Saxo Bank. Create your own charts with SaxoTraderGO click here to learn more

Management and risk description
For this short-term bearish trade we initiate a 10 point-wide vertical put spread

Underlying Price $223.51

Buy 1 23 September 16 225 Put for $11.90
Sell 1 23 September 16 215 Put for $  6.15   (*as of the close last night) 35 days
Net Debit (money you pay)      $5.75

Breakeven  = 225-5.75=219.25
Max Gain = 10 - 5.75= 4.25
Max Loss = 5.75
ROR= 74%
*above calculations at expiration
Entry: today

Stop:  no stop

Target: 2-3 weeks out

Time horizon: exit week the of expiration or when 80% of max gain achieved

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail