New options trade idea on Tesla as it fluctuates violently from Elon Musk’s antics!

The S&P 500 has been rallying hard this July…but the run might be losing steam.

The index has now closed above its upper Bollinger Band for 8 straight sessions. That’s a classic sign of overextension and often signals a pullback is near.

Most of the upside is being driven by just a few mega-cap names like NVDA, AAPL, and MSFT. When a rally gets this narrow, it raises the risk of a broader correction.

Trade Idea: Bearish Credit Spread on TSLA

TSLA looks especially vulnerable right now—not just technically, but because of growing analyst concerns about Musk’s political distractions. Building a third party takes time and focus, and that may come at the expense of running the company.

Here’s one way to play it:

Sell Aug 15 $360 Call

Buy Aug 15 $365 Call

• Break-even: ~$361

• Max profit if TSLA stays below $360

• Current price: $301.60

• That’s nearly 20% cushion

• ~90% probability of profit

This is not necessarily a trade I’m taking… but it’s a new idea that’s come up due to the volatility of a well known name. 

With credit spreads, you need liquidity to get filled… and Tesla sees huge volume. Plus, a nice potential winner here at 90% probability.

My Morning Options picks are up 115% since launch

Mid-June, I launched my Morning Options service to send you some morning picks you can get in (and out) of in 5 minutes or less. 

The results have been incredible especially in this choppy market. 

Take a look:

My next ones will be going out soon… read more about how I find these picks here.