Part 7/12:
Tesla's earnings reports on October 22nd pose another layer of uncertainty. While likely to be incorporated into the price beforehand, holding risky or overly leveraged positions through earnings remains perilous because of potential surprises. Therefore, the speaker advises avoiding holding aggressive trades over the earnings date.
Trading Strategy: Options-Based Tactics to Capture the Move
Given the expected timeline (October 6th to October 22nd), the speaker advocates a focused options strategy to maximize gains while managing risk. They highlight three main tools:
Call Options: Buying long-dated (LEAPS) or near-term calls to leverage upside potential.
Margin Buying of Stocks: Using leverage to increase exposure, with caution due to margin risks.