everman
Member
okay here is the deal Everman
i think it might be best to keep the total call option position below a certain % of your portfolio and devote the significant portion to common. in my case the ratio of common to calls is approximately 15 to 1 or less than 6.25% of my TSLA position is in Leaps.
now this may change as the market value of my calls fluctuates. however, i do NOT think it would be wise for me to suggest loading up on Leaps in an IRA. see, it all boils down to percentages. now, if i had a total portfolio of $100K or less than i would be an aggressive buyer of TSLA leaps with maybe even 50% to 75% or even 100 % of my portfolio in TSLA leaps in a taxable account. if i had a portfolio of upto $1 then i would limit my TSLA calls to no more than 30% of my portfolio. again in a taxable account but that is just me and this is in no way any suggestion or recommendation or an advice.
having said that this is a golden time to buy TSLA leaps. personally, i have not bought a single LEAP for well over 6 months now. all i am doing is buying common like crazy.
i think you got at least a $1 position in TSLA if not more so my best guess is that you're all set to take it upto anywhere from $7 to $10 or even $17 to $20 over the next 5 to 10 years if you do nothing but simply hold all your common stock and not worry about LEAPs. however, if you want more in life than that and you want an adrenaline rush then go for it and switch from common to calls as you are proposing to do. Personally, i would not do it, at least not in an IRA unless i had at least $2 or more worth of common sitting in a Roth or something. however, i am not in the business of giving advice and i wanna make it crystal clear that this is definitely NOT an advice. Don't blame me if you fail to switch your shares into LEAPS and this MF takes off to the moon ( as i fully suspect it will) and you miss out on huge profits. on the other hand, do not blame me if you DO convert from common to LEAPS and Elon Musk decides that EVs are not so cool anymore and he becomes CEO of GM or F instead to produce more ICE and the sucker tanks to $310 or below (as many naive longs on this board hope) and your LEAPS go into non tax deductible deep losses.
i'll post my personal thoughts on SP especially for you on the next few posts
NONE OF THIS IS AN ADVICE in any way shape or form nor should it be construed as one
(i am the guy who initially started writing "not an advice" on my posts)
Thanks so much TT! I’ll digest this tonight and get with you tomorrow. I like the idea of increasing exposure some, but keeping it a smaller overall percentage of my position. I’ll do some modeling tomorrow,
Thanks again!