Might have touched that in the premarket this morning, think it got down to the 275 or 276...
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Might have touched that in the premarket this morning, think it got down to the 275 or 276...
DurandalAI
Member
As usual, Tesla's costs get compared to what GM is supposedly paying for the Bolt. GM has outsourced the innards of the Bolt to LG, so GM does not have nearly as many vertical integration savings, and GM's "loss" on each sale of the Bolt is just an accounting trick at the moment. The amortized costs of the tooling for the M3 will be high given how much production they are ramping up for, but realistically the M3 will be a profitable vehicle, even more so the higher production ramps up.
TrendTrader007
Active Member
I'm sitting tight doing nothing it's a normal pull back before the earnings no big deal
TrendTrader007
Active Member
I don't care about 5 to 10% or 20% moves in this stock this way or that way eventually I will win
As I speculated up thread, I am not the only one buying the dip, the smarter bunch of those holding the short positions used it to cover. There were about 337k (**) shares covered so far at Fidelity:
MitchJi
Trying to learn kindness, patience & forgiveness
My current investment strategy is that I have about 98% of our portfolio in J19 LEAPS, about 50/50 split between $240's purchased for $19.59
and $260's purchased for $50. I'm planning to hold them until early to mid 2918, except I'm concerned about a possible market crash in 2018 and a possible pullback from a squeeze, so I might pull them out for one of those reasons, in spite of the fact that I'm extremely confident that the SP will be at least $350-$400 by mid 2018.My only remaining short term issue is that I believe it could be a bumpy road between now and mid 2018, but I also believe that there will be some substantial bumps along the way. ER's, shareholder meetings and M3 reveals will probably be the catalysts for many of those bumps. I think that it's possible that the upcoming Q4 ER will be one of the positive catalysts. I'd be delighted if the SP bumps to $320 by March 3!
jhm
Well-Known Member
At 1:24pm 103,000 shares traded hands and we dipped below 270. I'm wondering if this was a big play by shorts to trigger stop-losses set at 270, or if it was just algos chasing other algos. End of day short selling and covering data may shed some light.
Vis Fly on The Wall:
UBS put out a note earlier today in which it questioned the fundamental case for the run-up in shares from late November 2016. Price was last at $272.96, down over 2.4% on the day. At that price next support is at $269.23. A move to or below that level would break the uptrend. Resistance is at the $275 area.
UBS put out a note earlier today in which it questioned the fundamental case for the run-up in shares from late November 2016. Price was last at $272.96, down over 2.4% on the day. At that price next support is at $269.23. A move to or below that level would break the uptrend. Resistance is at the $275 area.
Let us hope that as ultra bear, Mr. Speigel called the bottom for all of us that ultrabull, Ron Baron, has not called the short term top.
The stock needed a small break. Especially headed into earnings. You can't be green every single day.
DurandalAI
Member
2918, eh? You're REALLY long on Tesla!
racer26
Active Member
MitchJi
Trying to learn kindness, patience & forgiveness
Thank you very much! It's a brilliant strategy that I didn't fully understand the implications of, until reading your post. Because you are using LEAPS as part of a strategy to accumulate shares instead of buying on margin for $120 per share? Congratulations on a brilliant trade!
The only way that I'd considered using LEAPS is to make money, which is different in some huge ways from accumulating shares. Example, for other readers, if the SP drops by 20% to $800 per share in November 2018 and then recovers in February it doesn't matter with your strategy to execute your options, because you will own the same number of shares either way. But since I'm going to convert the LEAPS to money I'd lose $200 per contract or $20k total per contract!
If you are keeping the shares, and the "interest" is only 1 or 2 percent there is absolutely no reason to execute early. You might as well use the funds for something else in the meantime.
I have one question or suggestion. Since you were confident that the LEAPS will be profitable, probably by at least 200-300 percent, why didn't you buy more than you want to exercise, since the profit on the additional LEAPS could easily pay for the execution? Free is definitely better than $120 per share!
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