I’ve been sitting on a Tesla butterfly and call debit spread for weeks. We’re up over 100% on the vertical.
But I’m not taking profits yet…
Yesterday, I watched Tesla pull a $5 move while the SPY was just puking all over the place.
That tells us something.
Tesla wants $500.
The Daily Squeeze That’s Building
Tesla’s sitting on a daily squeeze right now. Volatility has been contracting – the stock has been coiling up like a spring for days.
When you see this pattern, it’s telling you pressure is building for a significant move.
The beauty of a daily squeeze is that it gives you a warning. Most traders chase breakouts after they happen. The squeeze lets you position before the fireworks start.
But here’s what makes this squeeze different – Tesla’s showing massive relative strength while it’s building.
Yesterday, when SPY looked shaky and everything else was choppy, Tesla barely flinched.
That’s not normal market behavior.
Why November 6 Matters
Tesla’s annual shareholder meeting is on November 6. While everyone’s obsessing over earnings and macro stuff, nobody’s really paying attention to this event.
When you see a stock holding its ground during market weakness AND sitting on a daily squeeze, that tells me institutional money is positioning for something bigger.
They’re not selling the weakness – they’re accumulating through it.
That ramp yesterday? That happened the second SPY found its footing. Imagine what Tesla does when the market actually turns bullish.
Your Action Plan
I’m holding this butterfly and vertical into November 6, but here’s what you should watch…
- Entry zones: Any pullback to retest recent support becomes a gift.
- Timeline: The November 6 shareholder meeting is the catalyst date.
- Risk management: If Tesla breaks below the squeeze setup, this thesis is wrong.
The relative strength edge here is huge. Tesla’s showing you it doesn’t care about SPY’s problems.
When a stock acts like this while sitting on a daily squeeze, you pay attention.
This isn’t about being cute with day trades – this is about riding momentum that actually matters.
If you want to follow my live trades and see how I manage positions like this in real-time, check out Daily Profits Live.