I told you so on TSLA! That has to be first. Aside from the FACT (finally, facts!) that the company is performing miles below anything that can possibly justify the lofty PRICES (never values) that the stock rose to, now we have a 3rd Model S on fire, this time in Nashville, where they usually wait to get home before they barbeque the road kill.
Fortunately, no one was injured but the RUMOR (not sure) is that this was NOT a collision so, either another road debris fire (they have that outside of California, you know) or possibly just spontaneous combustion. In fact – and this is purely speculation – it may be that TSLA's drastic slowdown in production growth has something to do with a flaw in the battery packs that may ultimately lead to a recall.
If that is the case (and it's only speculation based on some vague and possibly coincidental signs), then this may just be the beginning of TSLA's big correction, Yes, we are super-short TSLA in all of our portfolios and have been for ages. Just yesterday I told you we liked the Jan $120 puts and they opened at only $2.40 and finished the day at $4.30 for a very nice 82% gain on the day (you can get these trade ideas delivered to your mailbox daily, by the way). In our Member Chat room, we flipped into the Jan $165/155 bear put spread at $5.50 and those will return $4.50 (82%) if TSLA stays below $155 through Jan.
Now, on to the next soon to be overbought stock – Twitter! They IPO today…
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