Follow Fast Money Trades Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
Editor's Note: The stock market is a fickle beast and is often driven more by emotion than by sheer logic and reason. Case in point... the latest activity around TSLA. And while it's true that there's no (actual) crystal ball out there to tell you exactly what will happen in the stock market, you can predict where a stock or ETF is moving. With the right tools, you can determine what a stock's price will look like tomorrow, next week, next month, and beyond. Click here to see exactly how it can be done...
Elon Musk is a talented developer and a trailblazer in his own right...
And while we could rattle on about his accomplishments for days - lately Musk has been dominating the headlines for a much different reason.
You see, Musk has many opinions, and he takes to Twitter to express them all...
And his latest one has really rocked the investing boat.
But regardless of which way his newest "big idea" goes - you can profit off this tech mogul's erratic behavior...
And here's how...
The Only Option to Play TSLA Is Options
Elon Musk has big ideas and while many are revolutionizing and powerful - his newest one is daring even by his standards.
Musk wants to turn Tesla Inc. (Nasdaq:Â TSLA) into a private company.
On Tuesday, Musk took to Twitter Inc. (NYSE:Â TWTR) to introduce his new idea and noted that he already lined up funding. He also told employees that this move would help relieve the "enormous pressure" that Wall Street's expectations brings.
You see, as a public company, Tesla is susceptible to wild volatility, and its stock price can bear the brunt of it. From this, employees can become distracted, seeing as they are all shareholders. Musk also noted that because the stock trades publicly, it "means that there are large numbers of people who have the incentive to attack the company."
This plan has a long way to go, and it's just the beginning stages. But all it took was a simple tweet to send Tesla's stock spiking by almost 9% - and then after Musk posted a letter to his employees, the stock reached $379. That final number rang up an 11% price increase on the day.
This gains on this one stock could single-handedly earn you enough to retire. Click here now to learn more...
Now, Tesla has declined to comment on Musk's latest Twitter tirades, but Musk holds to the hope that all current investors will stick with the company through this transfer. On top of this, Musk pledged to continue to hold his stake in the company (around 20%). He said he was "super appreciative" of Tesla shareholders, and vowed to "ensure their prosperity in any scenario."
Now, no one can be sure what the next step is for this leading automobile producer, but there's one thing we know for sure - there's no doubt we'll continue to see this company in the headlines.
And seeing that the latest news story pushed the stock up a whopping 11%, there's no denying that these Twitter tirades can help boost our profits...
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.