The Big 3: TSLA, ASTS, NOW

The Schwab Network's 'Big 3' segment dives into three high-impact stocks—Tesla, AST Space Mobile, and ServiceNow—just ahead of key earnings events and volatile market conditions. Despite weekend panic about a potential crash, the market held steady, with Scott Bauer of Prosper Trading Academy arguing that fear is overblown and volatility is mispriced, especially given the VIX’s low level. Tesla, down 13% year-to-date, is positioned for a short-term breakout with a broken winged call butterfly strategy targeting $420–$432, leveraging technical support at the 200-day moving average and a bullish MACD. AST Space Mobile, despite a recent 8.5% drop, shows resilience at its 200-day support and is seen as a potential short-term bounce play with a $70 put spread. ServiceNow, down 53.5% from its highs, is viewed as deeply oversold and poised for a rally, with a 100–110 call spread offering up to 4x return if earnings drive a breakout above $110—a key volume and resistance zone. The episode underscores a contrarian theme: the most feared stocks may offer the best tactical opportunities when technicals align with sentiment extremes.