Why Invest in Tesla?<\/h2>\n\n\n\n
Not only is Tesla the global market leader in electric vehicles, Tesla's solar division, formerly known as SolarCity<\/a>, is also the largest solar installer in the US. So Tesla<\/a> is synonymous with disruptive renewable technologies.<\/p>\n\n\n\n Tesla's boss Elon Musk is now the most influential CEO in the global tech industry. Whether it's SpaceX, The Boring Company, Paypal, Neuralink, OpenAI, etc., Elon Musk is not only associated with disruptive innovations, but also has the power to make gold out of stone.<\/p>\n\n\n\n Tesla's financial strength and stock performance has led it to be included in the S&P 500 index for the first time in late 2020. It is one of the most traded stocks<\/a> on the market.<\/p>\n\n\n\n Based on TSLA's share price trend last year, which reached a low of $70.1 in March and has since climbed to a recent price of $900, those who bought at the lows last year could have achieved a 12x return on their investment.<\/p>\n\n\n\n Everyone is wondering if TSLA will shoot past $1000 per share, and when will that happen?<\/p>\n\n\n\n Is there a pattern in how the Tesla price changes, and can we see signs that predict when the stock price goes up?<\/p>\n\n\n\n From the TSLA price trends last year, we can see 4 periods of exciting up trends, in which the stock price would increase by $100-200 in a very short time.<\/p>\n\n\n\n If we use TD Ameritrade's analytic tool<\/a>, TTM Squeeze, we can see the same patterns which predicted the rise in 3 out of 4 occasions.<\/p>\n\n\n\n TTM Squeeze<\/a> compares the current stock price changes with the history data and plots the movement momentum with a multicoloured bar chart:<\/p>\n\n\n\n <\/p>\n\n\n\n By referencing TTM Squeeze with the stock chart of TSLA, we can see 3 times out of the last 4 bullish spikes<\/a> happened immediately after the red dots.<\/p>\n\n\n<\/p>\n\n\n\n <\/p>\n\n\n\n We also notice the red dots happened when the Bollinger Bands were narrowest, which means the options were the cheapest due to low IV. They were good opportunites to buy Call options to anticipate strong bullish moves<\/a>.<\/p>\n\n\n\n We can see a few red dots are beginning to build up in the TTM Squeeze chart, so we expect either a strong bullish or bearish<\/a> move very soon.<\/p>\n\n\n\n If you believe TSLA will go up soon, we can just buy and hold Tesla stocks. But at the current price of $800, you only get Return on Capital of 25% if TSLA reaches $1000.<\/p>\n\n\n\n If we trade options<\/a>, there is a chance to increase ROC to beyond 100%.<\/p>\n\n\n\n We can purchase a Calendar Spread<\/a> to increase the leverage:<\/p>\n\n\n\n This strategy would require $1900 in Buying Power.<\/p>\n\n\n<\/p>\n\n\n\n <\/p>\n\n\n\n On the TD Ameritrade platform, go into the Trade tab, and BUY a Calendar at $1000 in the the next month's options.<\/p>\n\n\n\n Adjust Qty to 1, and make sure you SELL a Call that expires in a month, and BUY a Call that expires in 2 months.<\/p>\n\n\n\n In the Risk Profile tab, we can see the Return on Capital is the highest when TSLA reaches $1000, when the value of the Call options<\/a> in the Calendar Spread becomes $5000.<\/p>\n\n\n\n From a cost of $1900 to enter the trade, this represents a maximum ROC that is 160%.<\/p>\n\n\n\n If we expect TSLA to go up to $1000, even though the cost to buy stocks is lower, the potential return is only 25%.<\/p>\n\n\n\n Though it costs $1900 to trade the Calendar Spread, the maximum ROC can be 160%, far greater than trading stocks.<\/p>\n\n\n\n![\"elon](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/elon-musk-1024x576.png\")
TSLA Stock Performance of the Past Year<\/h2>\n\n\n\n
![\"TSLA](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/TSLA\u80a1\u50f9\u53bb\u5e74\u6210\u957712\u500d-1024x576.png\")
Warning Signs Before Tesla Stock Price Takes Off<\/h2>\n\n\n\n
![\"Four](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/\u7279\u65af\u62c9\u80a1\u50f9\u56db\u6b21\u660e\u986f\u7684\u6ce2\u52d5-1024x576.png\")
What Is TTM Squeeze?<\/h2>\n\n\n\n
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![\"ttm](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/04\/ttm-squeeze-bars-1024x576.png\")
![\"squeeze](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/squeeze-and-burst-1024x576.png\")
![\"blog](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner.png\")
<\/a><\/figure>\n\n\n\nHow to Increase Leverage Without Increasing Risk<\/h2>\n\n\n\n
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![\"calendar](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/calendar-spread-1-1024x576.png\")
Purchase a Calendar Spread Using TD Ameritrade<\/h2>\n\n\n\n
![\"TD](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/TD-Ameritrade\u8cfc\u8cb7Calendar-Spread-1024x576.png\")
![\"Adjusting](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/\u8abf\u6574Calendar-Spread\u7684\u8a2d\u5b9a\u5f8c\u5206\u6790\u5831\u916c\u7387-1024x576.png\")
![\"Analyzing](\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/02\/\u5206\u6790Calendar-Spread\u7684\u6295\u8cc7\u5831\u916c\u7387-1024x576.png\")
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\n\t \nStrategies<\/th> Market direction<\/th> Minimum buying power<\/th> Return on capital<\/th>\n<\/tr>\n<\/thead>\n \n\t Stocks<\/td> Rise to $1000<\/td> $800<\/td> 25%<\/td>\n<\/tr>\n \n\t Calendar Spread<\/td> Rise to $1000<\/td> $1,900<\/td> 160%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n