Elon Musk Tweet Strategy is to follow Elon Musk’s Twitter account and turn-on the notifications for new tweets. We cannot stress how important timing is, as we believe you will have a very short time frame to seize any effect these tweets have on a companies share price, so please do not forget this step.
Next wait for a notification to come through and if Elon tweets positively about a publicly listed company buy in-the-money ‘bought calls’ for the tweeted company and close these options whilst profitable. We believe ‘bought calls’ are the best choice for this strategy, as upside isn’t limited, whilst downside risk is limited to the value of the option’s premium.
We have looked at past tweets and there was around a thirty minute window once Elon had tweeted to buy ‘bought calls’ and close them whilst profitable. Be aware that this window of opportunity may have decreased as investors and traders have cottoned-on to how much Elon Musk’s tweet can effect a stock’s price. So acting swiftly is imperative for this strategy to be successful. Below is an image to show the effect Elon Musks tweets can have on a companies share price and why its crucial to take profits whilst possible, as share price can plummet in the near term.
Just a few pieces of advice before you try this strategy, only invest what you can lose, as this strategy was successful in the past but might not be successful in the future. We recommend using a demo trading account to get a feel for this strategy and to see if it is suitable for you, before buying ‘bought call’ options.
Elon Musk Tweet Strategy Conclusion
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