Technical Analyst Identifies Important Levels for Tesla (TSLA)

Two important levels for Tesla (TSLA) stock at this point are $208 and $220, Rick Ducat, the Schwab Network’s Lead Market Technician said on the network today.

Meanwhile, another Schwab commentator, Tom White, unveiled a bearish options trade on TSLA stock.

The Key Levels for TSLA Stock

“The $208 level held up for a long time for Tesla,” so that “could be a noteworthy point to consider in the coming days,” said Ducat. Another key area, based on volume trends, is $220, the technician added.

Even though TSLA has held up relatively well compared to other automakers and the consumer discretionary sector, Tesla’s Relative Strength Index (RSI) has “broken its uptrend,” he added.

A Bearish Options Trade

White suggested that traders consider buying the April 17 put with a $225 strike price while selling the put that expires on the same day and has a $200 strike price. He noted that he wants to avoid holding the options during the company’s earnings, which are slated to be announced on April 22.

Traders who utilize this strategy will pay about $9 of net premiums and have a break-even price of $216, White reported.

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Disclosure: None. This article is originally published at Insider Monkey.