Solar City is one of those high beta names that option traders love to play. This stock goes up and down like a yo-yo; it is highly volatile and especially susceptible to big news.
The company was started by Elon Musk (of Tesla fame) and is currently trading near all-time highs. What’s striking is the solid relative strength for a high beta name. In a “risk off” environment, we often find that these names are the first ones to get hammered.
I like the chart setup here, and with earnings coming out shortly, this could be a firecracker. You’ll see the most recent shallow pullback on the chart, which might be a great low-risk entry point.
