Buying TSLA put contracts.
Tesla Inc. (TSLA) is the leader for electric vehicles and has amazing technology and customer loyalty.
However, competition is picking up in TSLA’s primary business, the stock still trades at a premium valuation to expected earnings, and the overall market is moving away from growth plays with more risk.
Shares are likely to continue to break down if this market weakens. So by adding a bearish position in TSLA, we’ll be creating more balance with our trading approach — while still keeping some healthy bullish positions that will profit if the broad market finds support.