TSLA Broken Wing Butterfly Trade Targets A Profit Zone Between 360 and 400

The article outlines a bearish-to-slightly-bullish options strategy on Tesla using a broken wing butterfly with puts. Tesla had recently jumped 8% and moved back above its 50-day moving average, but the trade is designed to profit if TSLA stays within a broad range, especially above $400 and ideally between $360 and $400 at expiration. The setup collects a $12 net credit and carries defined downside risk, with the author recommending a stop if TSLA falls below $380. The piece is mainly educational, but the key market implication is that traders are positioning for limited upside in TSLA after the rebound, while acknowledging earnings risk ahead of Tesla’s July 22 report.