Battery Day Option Play
Tesla Battery Day is happening this Tuesday 9/22/2020. I will be purchasing call contracts at a $14 strike price with an expiration date of October 23rd.
During Tesla’s Q2 earnings call, Elon laid out how badly they were looking for a nickel producer. EV relies on nickel to keep producing batteries for their cars. With that being said
vale mines nickel in Brazil, Canada, Indonesia and New Caledonia making it the LARGEST producer of nickel. Vale also has joint-venture refineries in China, South Korea, Japan, the UK and Taiwan. These locations will help deliver nickel to the Tesla factories in North America, Berlin and China.
Important things to remember
VALE is the largest nickel producer in the entire world
VALE notified creditors on September 14th that it was paying off it’s $5 billion debt, suggesting a large deal leveling them an insane amount of capital.
VALE’s trading volume is up 37% from it’s average and has bullish whale activity in the options chain.
Earlier this month,VALE announced that they would be paying an extra dividend, on top of their regularly scheduled dividend, reinforcing the thesis of a strong balance sheet
Tesla andVALE already have a history of being bidirectional business partners for over a year.
Conservative estimates reveal Tesla's growth plan leavesVALE’s competitors ill equipped to deal with the demand for nickel Tesla needs to produce it's vehicles within five years.
This market is all about supply and demand and if Vale can supply the nickel needed a partnership with Tesla is eminent.
Technicals to watch for on 9/21/2020
Resistance: is at $11.82 & $12.12
Support is at $11.36 and $11.20
During Tesla’s Q2 earnings call, Elon laid out how badly they were looking for a nickel producer. EV relies on nickel to keep producing batteries for their cars. With that being said
vale mines nickel in Brazil, Canada, Indonesia and New Caledonia making it the LARGEST producer of nickel. Vale also has joint-venture refineries in China, South Korea, Japan, the UK and Taiwan. These locations will help deliver nickel to the Tesla factories in North America, Berlin and China.
Important things to remember
VALE is the largest nickel producer in the entire worldVALE notified creditors on September 14th that it was paying off it’s $5 billion debt, suggesting a large deal leveling them an insane amount of capital.VALE’s trading volume is up 37% from it’s average and has bullish whale activity in the options chain.Earlier this month,
VALE announced that they would be paying an extra dividend, on top of their regularly scheduled dividend, reinforcing the thesis of a strong balance sheetTesla and
VALE already have a history of being bidirectional business partners for over a year.Conservative estimates reveal Tesla's growth plan leaves
VALE’s competitors ill equipped to deal with the demand for nickel Tesla needs to produce it's vehicles within five years.This market is all about supply and demand and if Vale can supply the nickel needed a partnership with Tesla is eminent.
Technicals to watch for on 9/21/2020
Resistance: is at $11.82 & $12.12
Support is at $11.36 and $11.20
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