Marvelous Monday - TSLA & ARKK

What a week! We have incredible market movement during last week!

SPX crashed from an all-time high of $3914 to about $3723. A movement of almost 200 points! Around Friday, SPX moved from around $3730 to $3840! 


We can see similar movement on NDX as well. There is a Head & Shoulder forming on NDX for those who know about technical analysis. 

Even though NDX rallied on Friday, I will still pay close attention to the price level of around $12,800.

1 company that has been catching many people's attention is Tesla (TSLA). TSLA has been going from around $900 to $540 within 1 month period. I mentioned previously in Telegram that TSLA will meet some resistance at around $830 (+ / -) 5%. 

I sent this in OptionPundit's Telegram on 11th Jan 2021 and TSLA has not been able to break this price level yet. There is also a resistance level for TSLA at around $475 - $500. 

As many of you are requesting about the ARK funds, let's take a look at ARKK. 

It went as high as $160 and dropped to around $106 and now back to $117. This is a slightly bullish movement to me but there is a potential resistance that we need to be aware of which is around $120 - $125. 

So what's next moving forward? 

I will be exploring opening a Bull Put Spread trade on ARKK around $106 which is also another resistance line with around 30 - 45 days DTE.  

As there is no strike price of $106, I will be opening at $105 and $100 instead.

Total premium collected - $120. Max risk - $380.

Portfolio Allocation applies. If you are opening the same trade, do write in the comment session below. :)

A quick recap on the week. I hope you enjoy it.

Use the comment section below to share key points you picked-up, or questions you have or to share thoughts on how we can make it better for future episodes.

Manoj Kumar

P.S. Write in the comment session below if you would like me to cover other areas.

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