MM62 - TSLA MSL vs SL

I want to go over something quickly today because it is a little time sensitive. This is not financial advice. I am not a CPA and I am not a trading advisor.

Let's talk about Tesla first. Here is the setup. This is a 4 hour chart, and we are sitting at a minus 2.7 mean reversion.

You all know I work a lot with the pyramid, and I have been teaching you how I add to a trade with it. We never add at the all time high. As the stock corrects, we add a little stock and dollar cost average down as we go. And then we deploy leverage when we are near the bottom. That is the whole discipline I laid out in l.

So how do I view Tesla right now? We fell right through support at 340. I have mentioned many times that we have major support down at 290. And now we are starting to get these confluence buy signals coupled with the minus 2.7 mean reversion.

Does that mean this is the bottom? No, it does not. But it means we are probably closer to the bottom than we are to the top. And that is exactly when I start to consider deploying a trade with leverage. So let me walk you through my actual order of thought, because the decision I am weighing is the one that trips up almost everyone.

The decision: synthetic long or modified synthetic long

Here we sit at 310. Can we go down to the base of the pyramid? We can. But I cannot hold my breath waiting for it. So now I have a decision to make. Am I doing a synthetic long or a modified synthetic long?

 One thing is certain. This is going to be a December 2028 trade. I wish there were December 2029 options, but there are not, so 2028 it is. I priced both out so I could show you side by side and explain why I would choose one over the other. This is the same SL versus MSL framework I teach in Course 301, applied live to Tesla.