Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How Can Dan Nathan’s Trade For Tesla Motors Inc (TSLA) Stock Make 5 Times Your Money?

Tesla Motors Inc (NASDAQ:TSLA) had a very good 2014 till September, during which the stock price had hit an all-time high. The stock price soared as high as $280 per share. But post September the stock tumbled and had dropped around 25% since then. Tesla Motors Inc (NASDAQ:TSLA) stock is currently trading at $219.31 per share. Option Actions Trader Dan Nathan talked on CNBC about Tesla Motors Inc (NASDAQ:TSLA)’s stock and his options to make money out of it in 2015.

Tesla, is TSLA a good stock to buy, Jamie Albertine, price target,

 Nathan feels that Tesla Motors Inc (NASDAQ:TSLA)’s stock trend in 2014 was very interesting, with a perfect text book head and shoulders, with $200 being the neck line. He added that the stock broke that mark a couple of weeks ago. He mentioned that Tesla Motors Inc (NASDAQ:TSLA) stock is in a downtrend after the September high. He added that the 50 day moving average stock price is about to get below the 200 day average price of the stock. He mentioned that some technicians call it the ‘death cross’.

Nathan added that if the stock breaks $200 on the downtrend, it could go as low as $160 – $170 on the downside. He suggested that it is good to have a near term bearish bet on the Tesla Motors Inc (NASDAQ:TSLA) stock considering the fact that the stock price is on the down trend and potential head winds ahead in 2015. Nathan shared his option ideas to make money out of Tesla Motors Inc (NASDAQ:TSLA) stock in the current situation.

“[…] Today when the stock is $217.50, I bought the February 210-180-150 put butterfly. I paid about $5 for that. […] I bought one of the February 210 puts for $11. I sold two of the February 180 puts at $3.50 each at $7 in total and I bought one of the February 150 puts for $1. It cost me $5 for the structure. That’s my max risk. Between $205 and $155 for February expiration, I can make up to $25. That 5 times my money and above $210 and below $150 I lose that $5. So if you think about it this is not a stock I want to short with 27% short interest,” Nathan said.

He added that this is one of the best ways to make money out of Tesla Motors Inc (NASDAQ:TSLA) stock at low risk.

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.