TSLA Call Debit Spread

Here's a trade idea for 2023-05-30 : Create a Call Debit Spread on TSLA with a 200 strike price. The trade idea for TSLA is to use a Call Debit Spread with a strike price of 200. That means we are bullish on TSLA's stock and expect it to increase in value. A Call Debit Spread involves buying a call option at one strike price and selling a call option at a higher strike price to offset the cost of the first option. The reason this trade idea makes sense is because TSLA is a high-growth company in the electric vehicle industry that has been showing promising financials and product development. This indicates that the stock has potential to continue rising in the future. To reduce risk on this trade, we suggest setting a Stop Loss at 25%. Stop Loss is a predetermined price point at which we would automatically sell our options to prevent further losses if the stock price falls too much. Additionally, decreasing the spread between the two strike prices can also lessen risk, though it would also decrease potential profits. Overall, this Call Debit Spread on TSLA is a way to potentially earn income as the stock price rises while setting up safety nets to manage risk.