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But widening a spread (rolling the short leg up or the long leg down) always nets you credit.. So if your spread is too narrow, you can widen it with a profit, either same expiry or the next, separate action or as part of the rolldown of the spread.. Unless you no longer have the freedom to...

In my case my broker calculates $15k margin for one naked-put contract, so as if it was a $150-wide spread, which is way cheaper than a $400-wide spread.. Yet with a BPS the margin requirement stays fixed, whereas I would imagine my broker might decide to increase margin requirement for a naked...

Seems to me looking at past news events that the selling started already on the same day before the event.. So I would rather get out of the position Wednesday morning..

The power formula would be correct if your gain is a multiple of your margin requirement, i.e. multiple of $5k if spread width is $50, or multiple of $10k if spread width is $100..

4.2% every two weeks is actually 199.45% annualized, because you have to compound, i.e. the gain of the first week contributes to the result of the next week, and so on.. So, not 4.2 times 26, but 1.042 to the power of 26, minus 1.

Yeah, got so far.. But what does it mean practically?

What does it mean a put wall? How do you have to factor it in?

How much % of your cash reserve do you typically use as margin? Is 75% risky, given that you can always roll (theoretically) when SP goes the wrong way? What are the risks that can bite you? Margin calls, I suppose, but is the margin requirement not fixed with a BPS?

It's being discussed because it is new.. If realization is indeed 10 years away the discussion will thin out, and regain strength when it's becoming actual and relevant for this thread again.. So, not in favor of separate thread.. Already have too few hours in a day to read this thread...

There are some subtleties to take into account, as explained by Meet Kevin here from about the 5'00 mark: In short: If their BTC assets shrink below purchase price, they get to write off the loss as expenses, even if they didn't sell.. When they reverse this loss they get to book it as a...

I agree.. I derive little value of what he's saying.. He'll always confidently state what will happen, and it never happens..

Still not getting it.. $500 calls this Friday stand at $0,13, so that's $13 per contract.. So you'd need 7 contracts or 700 shares as cover to gain about $90, against 700 shares' worth of about $290,000.. To make an 'interesting' profit of $1000/week you'd be around 7500 shares to cover 75...

Did you even read what she wrote? Here it is, whether she wrote 2 or 3 is immaterial: "Predictably, when @elonmusk announced at Battery Day last week that would cut the price of a Model 3 to $25,000, several financial analysts panicked, downgrading the stock and/or cutting their price targets...

Or maybe she just made a typo..? I think people are making a bigger deal from this than it is worth, IMO.. Whether she wrote Model 2 or Model 3, it changes nothing to the argument she was making..

I wish he had done that sooner though..

Thanks, that was interesting to read.. Bummer though that it is not what it sounds.. :( Yeah, that's what I mean with semantics.. What he meant was pretty clear though.. (even though incomplete)

Except that Tesla itself has explained on autonomy day they run their FSD in shadow mode, see this Teslarati article: Tesla Autopilot's stop sign, traffic light recognition and response is operating in 'Shadow Mode' That's what Cringely is referring to. One can discuss semantics, but he sees...

Tesla won the self-driving car war, they just aren't telling us | I, Cringely Tesla won the self-driving car war, they just aren’t telling us I, Cringely / by Robert X. Cringely

I am in the opposing camp of preferring DOTM calls. While it is true that a DITM appreciates at about the same rate as the share (delta~=1), which sounds better than an option with a smaller delta, like e.g. 0.5 which appreciates only half a dollar per dollar the share gains, you have to also...

Yes, makes a lot of sense.. except that if it's exercised and you go in reverse with DOTM puts, you have to keep the cash around, which will net you no benefits if the SP keeps going up..

But why 950$ and not e.g. $1000, and why 9/2022? The chances it'll go that high by that time are high, so you're on the hook for an ever increasing amount, unless you can get out at some point, but which will most probably be much higher than the premium you collect.. Even if you decide to...

Would you be willing to share your script? thx! edit: rephrased more politely.. :oops: (non-native english-speaker..)

Why? If you don't mind me asking..

You're making me nervous.. Belgium does not have a capital-gains tax, so I read.. Right? (Only have been trading actively as of this year, so did not yet have to wonder whether I have to 'declare' anything.. Do I?)

A pre-teslanaire.. o_O

My wife wants to pour every euro we own into this stock.. Have a hard time keeping her from doing it.. "But honey, we should keep some money to buy food!"

I saw what you did there.. ;)

Just mentioned the most obvious reason to keep it short and snappy :cool:, but yeah, there are tons of other reasons why keeping your battery doesn't make sense

Here's one I found recently that I like: Tesla Inc.

I don't buy this idea of keeping your battery, and changing bodies.. Batteries will be commodities and low cost.. What is there to hang on to? I doubt he doesn't know.. he has heard all the bull arguments but remains unconvinced.. So, pretty sure he means $87 pre-split price, so $17.4...

Sorry, I can't even parse that sentence? What does it say?

FWIW https://twitter.com/connectingodots/status/1297656449984847880?s=21

No. https://twitter.com/enn_nafnlaus/status/1297495195878150145?s=21 ;)

That's my strategy as well.. I buy the higher strikes for a higher leverage (because they are cheaper and so the delta gain is percentually higher), and when the SP approaches the strike price, I roll up to a higher strike, and when expiry approaches I roll up and out to avoid the theta...

To be clear, I was quoting nafnlaus, a.k.a. KarenRei on this forum.. And indeed, is precisely the argument she is making to the guys thinking they can outsmart her (see her replies to their replies).. i.e. basically, trains have to start and stop in each and every station.. that's a lot of...

Actually, she has taken it upon her to fight desinformation and lies on Twitter, so the frequency and depth of information of her tweets these days are fenomenal.. More so I think then her posts here, because here she would be preaching to the choir.. On Twitter it's mostly morons and teslaq'rs...

In related news, AAPL is approaching the 2T market cap.. People like stock splits, obviously..

https://www.reddit.com/r/dataisbeautiful/comments/i8saks/ive_been_taking_stock_market_chart_and_turning/?utm_source=share&utm_medium=ios_app&utm_name=iossmf Nice fun stock chart as art.. Link above for Ford, with explanations.. Below one for Tesla: TSLA year. Can you find the Easter Eggs? ...

One other argument I haven't seen yet (but then again, may have missed a couple of thousand posts :D): If this was a dividend, it would be a 400% dividend, which is crazy.. and Tesla would have to finance the dividend, which of course they wouldn't.. it's your own shares that finance this...

I live in Belgium, and went through a stock split before (AAPL 1:7).. I wasn't taxed.. From what I gather this will be a stock split just like AAPL's..

Could you explain how it works? (what if sp goes down? etc..) thx

The Belter Nations could control the supply like OPEC did in ancient times.. (What was OPEC again? Can't remember.. o_O)

One starship cargo load of platinum would be worth $200 billion.. I think they'll figure out a way to deorbit that.. :cool:

Here's an interesting video of The Angry Astronaut who explores the subject of asteroid mining and the crucial role that Mars and SpaceX will play into that.. It is easier to mine an asteroid in the asteroid belt from Mars than to mine the Moon from Earth.. Which is probably one of the reasons...

Seems to me that the funds are going to be able to buy in at bottom prices, so the run up we were all hoping for may not materialize.. It'll merely bring us back where we were last weeks.. Bummer.. :( Edit: which was double of what we had last month, I am not complaining.. but we'll miss the...

From prison, hopefully..

squeeze?

Yup, that's the formula.. As to risk, I think it does not depend on the strike price but on the expiry date: the sooner the more leverage, the further the less risk.. Is a question of what you're comfortable with.. For me that would be around 6 months to one year out.. But I suppose that's...

I'll be happy to stand corrected, but at least it answers your question of when to sell: it doesn't really matter.. by rolling up you replace your calls by cheaper ones, so you can buy more contracts or you pocket the difference as a way of taking profit.. Either way you remain in the game if...

How many weeks ago was it that Tesla surpassed Toyota in market capitalization? Today Tesla is bigger than second-place Toyota and third-place Volkswagen combined! That's my new metric: when can we add the next auto maker? Daimler tomorrow? Honda the day after?