How We Just Landed an 82% Gain in Four Days

[Trading With Larry Benedict]( How We Just Landed an 82% Gain in Four Days By Larry Benedict, editor, Trading With Larry Benedict After a horrifying 2022, Tesla (TSLA) had a huge start to this year. From its January low, the electric vehicle (EV) company rallied a massive 110% in just over a month. Then after drifting lower, TSLA rallied again. As part of the AI boom, TSLA surged from late April right through the middle of the year. By the time it topped out (along with the Nasdaq Index) on July 19, TSLA had almost tripled from its January low. But since then, TSLA has dropped, swinging in between a series of lower highs and lower lows. That exact scenario can set up some great trading opportunities. And we recently enjoyed a solid win with members of my options advisory, The Opportunistic Trader. In just four days, we generated an 82% gain. What’s more, we did so using a counter-rally trade against the prevailing downtrend. So let’s see how we did it… Recommended Link [BLACK FRIDAY SALE]( Research On the World’s Richest Man’s New AI Company — Now 96% OFF [image]( Investing legend Teeka Tiwari has found a way for you to take a stake in Elon Musk’s new artificial intelligence (AI) project. And Teeka’s confident that anyone who gets into it could set themselves up for mind-blowing gains. Normally, an investment like this would be off limits to everyday folks. But today, you have a rare chance to take a stake... And you can do it right from your brokerage account. Soon, everyone will be talking about this project… [Get your stake here…]( -- Overdone Selling In the chart of TSLA below, you can see the clear diverging pattern (left orange lines) that led to TSLA’s reversal. When buying momentum falls like this (left lower orange line), it will pull the stock lower over time. And that’s what we saw. TSLA’s downtrend got going: Tesla (TSLA) [Image] Source: eSignal The relative strength index (RSI) fell all the way from overbought to oversold territory (gray dashed lines) as well. Then in mid-August, a V-shaped recovery in the RSI saw TSLA rally up to a lower high. But momentum reversed yet again, and TSLA slipped to a lower low. Then the August RSI pattern repeated in late October. This caused TSLA to bounce yet again. But it wasn’t just the RSI climbing out of oversold territory (right orange line) that provided the setup for our trade… Over the previous month, TSLA had plunged 19% – the worst performer of the Magnificent 7 (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla). Most of the other six were trading around breakeven levels (or better). Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Plus, TSLA had filled in its gap from November 1, meaning that the selling was likely over. So on November 9, we entered a long TSLA trade by buying a call option. (Note that a call option should increase in value when the underlying stock rises.) And as the chart shows, the trade went our way right from the start. Take another look: Tesla (TSLA) [Image] Source: eSignal TSLA closed slightly higher the following day. Then after the weekend, TSLA rallied strongly on Monday. That sent the value of our call option soaring. With our position in good profit, we decided to close it out that day for an 82% gain. All up, the trade took just four days. As always, we used options to generate this outsized return in such a short period. Had we just bought TSLA shares, our profit would have been smaller. But by being nimble and sticking to our proven mean reversion strategy, we made a very tidy profit here. Regards, Larry Benedict Editor, Trading With Larry Benedict Mailbag Did you profit from this trade? Let us know at feedback@opportunistictrader.com. IN CASE YOU MISSED IT… [The One Ticker Retirement Plan]( Over the Shoulder Demo Now Available Market Wizard Larry Benedict crushed the market in 2022. But he didn't do it with a “traditional” method… For a limited time, he’s sharing a free over-the-shoulder “demo” of his strategy in action. It takes less than 10 seconds… [Watch it here.]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. 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