Tesla Q4 Earnings and Revenues Beat - Stock Higher After Hours

A week and a half ago I put on a long option trade on Tesla with the stock being oversold and earnings coming up I figured it offered a nice risk-reward scenario.

Side note: I also bought shares outright in my IRA and along with buying the March 2024 100 calls I sold a shorter term option against it for "income."

The reason I share that last piece is because in many ways it limits my upside with that 100 call option.

Outpacing those analyst expectations..

Tesla reported the following earnings and revenue: Earnings (adjusted): $1.19 vs $1.13 per share expected, per Refinitiv Revenue: $24.32 billion vs $24.16 billion expected, per Refinitiv

Since expectations were beat the stock has jumped in after hours trading. Granted that doesn't guarantee it will open higher, but as of this writing it is up nearly 5% or $6.70 to $150.90.

Looking at the daily chart below you can see though this bounce off 102 has been nice and looks to be going higher come tomorrow's open, price is almost unbelievably still well in the low end of the down trend of the past year or so.

There is a lot of potential upside if this stock does decided to make a bullish run, even if just for a month or so. Doesn't mean it will definitely happen, but as I said earlier....the risk-reward scenario looked tasty.

The move has been good for the shares I bought.

Now for that options play, well it worked out great, outside of the fact I capped my upside with the short side call. Basically once the stock got over 134 I pretty much capped my gains for the most part. That was the trade though and that is fine, over the next week I will see if the stock pulls back at all and gives me a opportunity to roll the short option out or the profit will just get booked.

Not a bad place to be.

Posted Using LeoFinance ^Beta