When and How to Bottom Out Tesla and Apple During this Downtrend?

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03-06
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Recent events have rocked the shares of tech giants $Tesla Motors(TSLA)$ and $Apple(AAPL)$ .

  • Tesla faced a production halt due to a fire near its Gigafactory in Berlin, causing a 4% decline in shares.

  • Apple's iPhone sales decline of 24% in China led to a 2.8% drop in its shares.

Investors are wondering when these stocks will hit bottom and how to trade.

$165 and $160 are two key support levels of Apple. The market generally believes Apple might pull back to $160 in this wave.

$175 and $150 are two key support levels of Tesla.

How to profit from two giants’ decline?

1. Buy Put: Profit from Premiums

If you already hold the two stocks, you can purchase put options to provide downside protection.

In the event of a pullback, the value of the put options would increase, offsetting some of the losses on the stock positions.

Striking price: you can choose the current price or the price around support levels.

2. Sell Put: Profit from Bottoming out Shares

Different from profiting the premium increase of put options, Sell Put helps you bottom out shares at a desired level.

Striking Price: you can choose the price around the support levels (or your desired price). For example, you can sell put of $Apple(AAPL)$ with a strike price of $160.

It should be noticed that you should have enough margin for selling puts.

Will you bottom out the two giants?

At what price?

What’s your strategy?

Leave your comments and also post to win tiger coins~

Buy Low or Chase High? What's Your Choice?
Nvidia has risen 79% YTD and hits a new high of $897 on Wednesday trading. Apple and Tesla, however, face with problem and fall to $169 and $176 respectively. Cathie Wood recently sold Coinbase as COIN price hit a new 52-week high. ARK turned to bottom Tesla shares. It's clear that Cathie Wood buys low. ---------------- What's your trading style? Will you buy low of Tesla and Apple? Or chase high of Nvidia and Coinbase?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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