Tesla (TSLA) hasn't exactly been a great place to invest these days.
The other night, Tesla beat sales estimates by $100 million. It even saw global net orders jump 49% year over year for its Model S and X combined. The stock even began to jump, gaining nearly 3%. The next morning, reality hit.
What traders managed to ignore was the fact that the company had a nearly $1 billion cash burn rate, a number that is only set to rise as the company rolls out even more growth initiatives. Other traders ignored what some analysts called a “phantom beat,” given the exclusion of the SolarCity acquisition costs from estimates.
On that realization, TSLA slipped $13.50 and then fell even more after that.
However, traders look to be stepping back into the trade, as the stock catches support at the 50-day moving average. SHojld that hold, teh stock could bounce back even more than it did today. One way to consider trading it is with the TSLA March 250 call up to $8 and or the TSLA April 250 calls at market prices aboe $12.50.
Or, you can even sell a put option here by selling to open the TSLA April 250 put for a credit of $14.