TSLA Trade on Dec 27, 2021 10:35 from JRockTrades: Tradervue User Stock Trades.

Big Picture

Tesla and SPY have rallied in recent days. Tesla is up significantly since news came out that Elon was done selling shares.

I was watching Tesla and it was very extended on the 1 and 5 min charts. It was hugging outside the 2 Standard deviation bands around VWAP. I was watching the tape and it got very heavy around 1110 to 1112 area. It additionally broke it's uptrend line. I wanted to take a short playing for a move back to 1100. Since it is not available to short and I bought a put.

The trade started to work right away and I was looking for a pullback to 1100, though I was not looking to have the trade work against me after it started working. It was up about $200 and I put my stop order to sell if it retraced 50% of that. if the trade had made the target, I think it would have been worth about $30.

This trade did work, but probably is one I should have not taken. The Shark rule is to not short a stock holding over a rising VWAP. That said, it was very extended and looked ready to pull in. The trade never worked against me and I got a good fill and I was very closely watching it.