Hypothetically....
Imagine someone has a Roadster deposit and is considering canceling it to invest that $50k back into TSLA. Good idea or bad idea?
Started buying TSLA in early 2019. Did very well. Had 1500 shares, sold a bunch near the top to take back my initial investment, home improvements, put $50k into Roadster deposit, etc, and currently have 900.
Pro of canceling:
1. Able to sell puts on TSLA. At this level that's ~2 per week and ~$1000 profit per good week if we continue to chop along. Puts obviously are risky but IMHO buying TSLA shares at this level is probably a good idea. I'd love to have a nice round 1,000 shares again anyway. Easier to keep track of the future splits and growing fortune. lol I don't have the balls to sell calls at this level so I've lost out on that nice option income I was making, but not needing.
2. Profits from options or share appreciation off that $50k may more than offset any potential price increase in the Roadster.
Negative of canceling:
1. When I put the $50k down the website said $200k base price. Since that time they have removed the base price. While the contract explicitly states that this is to hold your place in line and they don't know the price of the car yet, I imagine they would do the right thing and maintain the $200k base price for those who reserved before a certain date. I can't imagine them saying to someone who gave $50k in 2017 "oh sorry, it's $300k now". That said, a loaded Model X Plaid is in the $160s so I've got to imagine that the Roadster would be more than $200k once they bring it to market.
2. I lose this $50k that I have held in essentially a 1 month lock time delay safe which is a nice to have I guess.
3. Having 1000 or 1100 shares instead of 900 shares going forward isn't going to be much of a game changer.
What would you do in this situation? Anything else to consider? My family is in very good shape financially and we have zero debt of any kind, however I have no extra cash currently to put into the market.
I struggle with this daily as of late. Really any thoughts are appreciated.
Imagine someone has a Roadster deposit and is considering canceling it to invest that $50k back into TSLA. Good idea or bad idea?
Started buying TSLA in early 2019. Did very well. Had 1500 shares, sold a bunch near the top to take back my initial investment, home improvements, put $50k into Roadster deposit, etc, and currently have 900.
Pro of canceling:
1. Able to sell puts on TSLA. At this level that's ~2 per week and ~$1000 profit per good week if we continue to chop along. Puts obviously are risky but IMHO buying TSLA shares at this level is probably a good idea. I'd love to have a nice round 1,000 shares again anyway. Easier to keep track of the future splits and growing fortune. lol I don't have the balls to sell calls at this level so I've lost out on that nice option income I was making, but not needing.
2. Profits from options or share appreciation off that $50k may more than offset any potential price increase in the Roadster.
Negative of canceling:
1. When I put the $50k down the website said $200k base price. Since that time they have removed the base price. While the contract explicitly states that this is to hold your place in line and they don't know the price of the car yet, I imagine they would do the right thing and maintain the $200k base price for those who reserved before a certain date. I can't imagine them saying to someone who gave $50k in 2017 "oh sorry, it's $300k now". That said, a loaded Model X Plaid is in the $160s so I've got to imagine that the Roadster would be more than $200k once they bring it to market.
2. I lose this $50k that I have held in essentially a 1 month lock time delay safe which is a nice to have I guess.
3. Having 1000 or 1100 shares instead of 900 shares going forward isn't going to be much of a game changer.
What would you do in this situation? Anything else to consider? My family is in very good shape financially and we have zero debt of any kind, however I have no extra cash currently to put into the market.
I struggle with this daily as of late. Really any thoughts are appreciated.