Insanity everywhere....

I cannot believe the insanity seen everywhere in the market. Here is one analysis I have seen about TSLA. Good luck for those who bet TSLA can jump 30-60% from here in three weeks.

For me, I'm shorting TSLA now in my way, of course. Let's see how it goes. For now, I'm enjoying my time next week on the warm beach in the south😜😇

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Just take a look at this chart of Tesla call options expiring next month…

The first column shows the strike price of Tesla call options, the second shows how much they cost as of October 28, and the third and fourth columns show how much Tesla needs to rise just to break even on the position.

Each option contract gives investors the right to own 100 shares of the underlying stock at the strike price.

For example, the $1,600 call option listed above gives investors the right to buy TSLA for $1,600 per share on November 19, 2021 for a cost of $330 per contract.

In order for investors to make money on call options, the underlying stock needs to rise far enough to cover the cost of the option… Which means that the only way to make money on this position is if TSLA rises an additional 49%... in just three weeks.

That's a very tall order.

The further down the option chain you go, the more it raises eyebrows. Some traders are willing to fork over $250 betting on a 58% surge.

That's insane… and it highlights the recklessness that's on full display towards the end of a market cycle.

Options have taken the market by storm… everyone seems to be trading them – from novices to professionals alike.

But to expect TSLA to rise another 50% in three weeks has all the makings of an imminent selloff. It's the type of irrational behavior reminiscent of market tops.