Two traders see another potential milestone ahead as Tesla joins the rare $1 trillion stock club.

Two traders: For the first time, the automaker’s stock surpassed $1,000 per share, joining an exclusive group of businesses with market capitalization above $1 trillion, including Apple and Microsoft.

Tesla flirts with $1 tn in market value as Hertz deal fuels latest surge

The stock jumped nearly 13% after Hertz announced plans to buy 100,000 electric vehicles to expand its fleet. The transaction is expected to be completed by the end of 2022.

Two traders: On Monday, Danielle Shay, director of options at Simpler Trading, told CNBC’s “Trading Nation” that “it’s one of those common tickers that will normally trade around a significant psychological value, and in the options market it tends to linger at those levels.”

Shay is aiming for an even higher level after Tesla’s newest achievement.

“I’d go with a $1,200 price tag.” For a November series expiration, we’re within that area, and I prefer to trade it with [butterfly spreads]. They’re low-cost, low-risk, high-reward, and they make for terrific momentum trades,” she explained.

For Tesla, Shay recommends trading a longer-dated butterfly spread, such as buying the 1,050 call, selling the. 1,200 call, and buying a second call at 1,350, all with a November or December expiration.

In a follow-up email to CNBC, she explained, “The reason I would say even December is because I love the. Santa Rally + January effect plus run into earnings in January.” “For several years in a row. January has been my greatest month of the year. Because it appears to be a perfect storm, I increased my risk in December and January.”

A climb to $1,200 suggests a 17 percent increase in value from Monday’s finish. By the end of the session, it had reached over $1,025 in value.

Oppenheimer’s head of technical analysis, Ari Wald, is optimistic on Tesla and agrees with Shay on a $1,200 price target. Wald had earlier recommended it as a buy on Oct. 4, when it closed just above $781.

During the same interview, Wald remarked, “If there’s one piece of investing advice, the best that we give to our clients, it’s to let your winners run, and this is a winner.” “The recent strength that we’re witnessing in the chart is a move above its January peak, and we believe this breakout is signalling the restart of Tesla’s longer-term uptrend,” says the analyst.

Click here: Sanjiv Goenka: Team’s valuation would be a multiple of a few times over 10 years
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