The TSLA puts I mentioned were up over 44% in the first hour of trade.

I’ve been bearish TSLA for a while now and that continued into this week. I thought that the pressure from the Twitter deal and operational issues were going to keep a lid on the stock’s upside potential for a while. Well, on Monday it was announced that TSLA would be slashing prices in China and it sent the stock cratering. The TSLA puts I mentioned were up over 44% in the first hour of trade. 

Here was my reasoning:

Now, since I am so bearish on the market right now, I want to go after the stocks that I think have the biggest immediate-term downside even if the market doesn continue to drift higher a bit more.

This week, I am going after TSLA to the downside.  I think the pressure from the Twitter deal and operational issues are going to keep a lid on the stock’s upside potential for a while.

If I am wrong, I will be looking to exit this trade with a loss if TSLA closes above $217 which is just above the 5-day moving average.

If things go my way, I think we will see TSLA crack below the $200 level this week and $198 is my first target on the trade.  If things really spiral, I think TSLA could see $190 soon.

I know trying to bet against TSLA really is stirring a hornet’s nest with traders. Make sure you join me today to get my full game plan on this stock plus the market in general.  We are in for a wild few weeks ahead, so buckle up!