Tesla dropped about 14 percent in a single day, so Tom Preston asks a fair question: was that even normal? Using five years of Tesla price changes, he shows that one day and five day moves actually fit a bell curve pretty well, with the rare monster day living way out on the tail.
Stretch the window to 30 days and the tails get fatter, the moves get wilder, and the neat curve breaks down. The lesson is simple: outliers are frequent enough to wreck an oversized short premium trade, so lean on defined risk, keep size small, and let consistency across many trades do the work. This is education, not a recommendation.
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Chapters
00:00 Tesla's 14% drop, is it normal
00:22 Why stocks follow a bell curve
01:45 Testing five years of Tesla data
02:33 One an...