by Ian Harvey
September 29, 2018
The continuing Elon Musk saga has been highly profitable for those traders that have been following the option trades that Stock Options Made Easy have provided for consideration. The latest article “Elon Musk Continues To Pull Tesla Downwards!” on September 8, provided two trades that were worth considering – the first provided a potential return of 89%, whilst the alternative trade would have produced a potential profit of 125%, during last Friday’s trading. The trades that were mentioned are……
Option trade to consider: Buy the TSLA OCT 19 2018 240.000 PUT at approximately $14.00.
Option trade to consider: Buy the TSLA OCT 19 2018 220.000
PUT at approximately $9.00.
And now, the saga continues…..
The SEC filed a complaint against Musk after markets closed Thursday, alleging that the chairman and chief executive committed securities fraud by issuing a series of “false and misleading tweets about a potential transaction to take Tesla private.”
And, Musk also issued a statement, calling the SEC lawsuit unjustified. “I have always taken action in the best interests of truth, transparency and investors,” he said.
Therefore, according to the SEC complaint, which asks the court to ban Musk from running any public company, seeks a jury trial.
If the SEC wins its case, Musk could potentially remain chief of his other business interests, SpaceX and the Boring Company, because they’re private companies. But an SEC trial and the reputation damage to Musk could be a distraction for those firms or discourage financiers from investing in a business that would face complex prospects for going public.
The company is also facing several shareholder lawsuits over Musk’s statements alleging fraud or market manipulation.
The SEC investigation is likely far from over, legal experts said. Musk could not only face a criminal indictment, but the SEC could also amend its complaint to include Tesla and its board of directors.
And now, many view this as a positive for Tesla Company in the long run. Gene Munster, a managing partner at the venture capital firm Loup Ventures, believes that could be good news for Tesla.
Munster said the SEC's lawsuit against Musk, will be "slightly disruptive" for Tesla in the next few months as the company seeks to stabilize its production and delivery infrastructures while beginning to deliver consistent profits.
But beyond the next six months, the SEC's lawsuit could work to Tesla's advantage.
The value of Elon Musk's Tesla holdings took a hit on Friday, of $1.44 billion.
The company's stock closed at $264.77 per share, down 13.9 percent from $307.52, where it closed on Thursday.
Tesla's total market value lost $7.293 billion in Friday trading.
It is quite likely that the share price will continue its downward spiral come next week, and also, more potential profit will surface for those traders who were willing to be patient, hold onto their trades, and not sell on panic mode when Tesla share prices were climbing.
PATIENCE PAYS OFF!
Further thoughts and trade considerations will be available in the future as more details unravel!
Action To Take.....
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