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On Friday’s CNBC’s Options Action, the crew analyzed the performance of large cap tech stocks and Tesla. Tesla (TSLA) broke out above its major $280 resistance level in early April and has continued on a steep climb higher since. TSLA is one of the highest performing stocks in the market at 73% YTD, providing a good profit taking opportunity. Additionally, it has yet to check back to its bullish trendline since breaking out, suggesting a possible pullback. Expecting a consolidation or a possible pullback, Michael Khouw suggested selling a July 375/395 Call Spread for an $8.00 Credit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action

View this OptionsPlay on TSLA