We have written extensively about the Tesla trading range. Despite all the news and tweets Tesla has gone nowhere for almost 2 years, despite the big oscillations.

Shorts have been frustrated by sudden spikes and longs have been disappointed with massive moves lower.

News flow has been most bullish at resistance levels and most bearish at support levels.

What tweet has been legal or not shouldn’t matter for the company as such.

Here we are once again trading at the lower part of the huge range. Getting overly bearish on Tesla here is (probably) a late trade. This is max frustration among investors and traders and a great textbook example of greed and fear.

Implied volatility has shot up dramatically during the last sharp move lower in Tesla shares. At these levels investors are discounting almost 4.5% daily moves in Tesla shares.

Buying protection here is only for those that believe the range will NOT hold.

Source: charts by Bloomberg