From potential Tesla customer to buying put options

[GoTslaGo]

Huh. Have you applied for a higher level? At Schwab, selling cash-secured puts is "level 1" options access and it's not that hard to get -- I got it with no previous options experience, although I *did* have over 25 years of stock trading experience.

Not yet. Been playing around with selling covered calls on other stocks. Mostly reading about options right now to understand the ins and outs (had to take a break from Elliot Waves, it's really a lot to comprehend so I have to take breathers). So despite my angst, it actually has been working out for us. My wife seems to enjoy getting the extra income for now with selling the covered calls. Fortunately it's in a separate account from our TSLA shares, but she knows those are verboten.

We have applied for a full spectrum of options with another brokerage that we have most of our shares with, and will see what they will provide. Those are where we have our TSLA shares, and would like to sell puts in that account if they grant it. I mentioned buying calls and puts, but my wife keeps saying, why spend money when you can get it instead? Good point (she's a better business person that I can ever hope to be). Wish we had a better understanding of options when we first bought some shares of other companies that are frankly bumping through the bottom (or so I hope). Could have rolled down covered calls on them until they had a temporary up and sold. Too late now.

Thanks also to @Jonathan Hewitt for recommending the Options as a Strategic Investment book! Definitely recommended reading for anyone interested in options, and for anyone interested in investing at all... we would have added options for some trades that we did and got more cash if we did... of course in retrospect now. Now when we plan to sell some stocks we will sell some short term covered calls, and just let the stock be called away at expiration.

 

[Jonathan Hewitt]

Huh. Have you applied for a higher level? At Schwab, selling cash-secured puts is "level 1" options access and it's not that hard to get -- I got it with no previous options experience, although I *did* have over 25 years of stock trading experience.

Apparently they didn't apply for it yet but it also depends on the brokerage. When I applied for full IRA options trading last year for my Fidelity IRA they only granted me the ability to do covered calls. No cash secured puts or spreads, etc. Really makes no sense considering I have 3 other brokerages that have no problem with me doing naked calls, puts, etc and I do them regularly...Maybe if I reapplied now they would ok me.

 

[Jonathan Hewitt]

Not yet. Been playing around with selling covered calls on other stocks. Mostly reading about options right now to understand the ins and outs (had to take a break from Elliot Waves, it's really a lot to comprehend so I have to take breathers). So despite my angst, it actually has been working out for us. My wife seems to enjoy getting the extra income for now with selling the covered calls. Fortunately it's in a separate account from our TSLA shares, but she knows those are verboten.

We have applied for a full spectrum of options with another brokerage that we have most of our shares with, and will see what they will provide. Those are where we have our TSLA shares, and would like to sell puts in that account if they grant it. I mentioned buying calls and puts, but my wife keeps saying, why spend money when you can get it instead? Good point (she's a better business person that I can ever hope to be). Wish we had a better understanding of options when we first bought some shares of other companies that are frankly bumping through the bottom (or so I hope). Could have rolled down covered calls on them until they had a temporary up and sold. Too late now.

Thanks also to @Jonathan Hewitt for recommending the Options as a Strategic Investment book! Definitely recommended reading for anyone interested in options, and for anyone interested in investing at all... we would have added options for some trades that we did and got more cash if we did... of course in retrospect now. Now when we plan to sell some stocks we will sell some short term covered calls, and just let the stock be called away at expiration.

Glad you liked the book! Its funny your wife mentioned why buy when you can sell because that's the same conclusion Tastytrade.com came up with, for the most part. The have analyzed tons of data from ~2005 to now and have determined optimum ways to collect premium. If you're done with the book you can watch FREE live shows at Tastytrade.com or listen to recordings. I download them in my podcast player and listen to them on the drive to work and back everyday. I used to listen to "The Liz and Jenny show" but lately have been listening to "Best Practices," "Market Measures," and "Options Jive." They have shows for all skill levels and even a guy who does futures. A lot of what they preach seems counter-intuitive at first but the numbers don't lie! I don't follow their trading style 100% in regards to trading TSLA and sometimes it works out but on days like today I wish I had followed their advice...

 

[NOLA_Mike]

The most probable outcomes I forsee are either bankruptcy or being bought out at a low price by a competitor in the next few years. I sincerely hope to be proven wrong.

I am not going to miss out on this one. I have purchased options to sell 600 shares of TSLA at $220.00 by January 2019, and I am to quintuple this investment over the next few months.

Doesn't really sound like you "...sincerely hope to be proven wrong." Sounds like you are bitter about your experience and you hope they go bankrupt. So much so that you're putting money on it. Which is all fine. However, I would question your investment thesis - seriously.

 

[TradingInvest]

I wouldn't challenge mryeburn's approach. Look at his years of investigation of Tesla, his knowledge about Tesla's problems at least rivals Mark Spiegel. My only question for mryeburn is that since you have solid reasons to believe Tesla will do terrible in the next 2 years, why only put $16k on the line? why not buy more puts?

Disclosure, I long TSLA and am always looking for opportunities to add more.

 

[mryeburn]

Sorry to dredge up an old thread. I want some advice on a personalized license plate. A small fraction of the profits from my put options will go toward a nice vehicle. I'd like the license plate to say "TSLA PUT" but in my jurisdiction license place are only 6 characters long. Any suggestions?

 

[bdy0627]

Sorry to dredge up an old thread. I want some advice on a personalized license plate. A small fraction of the profits from my put options will go toward a nice vehicle. I'd like the license plate to say "TSLA PUT" but in my jurisdiction license place are only 6 characters long. Any suggestions?

You're actually pulling up a thread from over a year ago to gloat right now?

 

[ItsNotAboutTheMoney]

NGTVGN

(Although my suggestion would be to save the money and not get a vanity plate at all. Those and specialty plates are both great ways to throw money away. )

Here in Maine, for the past several years, pretty much anything goes so you could have ****EM.

 

[neroden]

Sorry to dredge up an old thread. I want some advice on a personalized license plate. A small fraction of the profits from my put options will go toward a nice vehicle. I'd like the license plate to say "TSLA PUT" but in my jurisdiction license place are only 6 characters long. Any suggestions?

I'll just say you're smart to get out of your put position before expiration.

 

[EarlyAdopter]

Sorry to dredge up an old thread. I want some advice on a personalized license plate. A small fraction of the profits from my put options will go toward a nice vehicle. I'd like the license plate to say "TSLA PUT" but in my jurisdiction license place are only 6 characters long. Any suggestions?

Aren't you still underwater on those? From the dollar amounts mentioned way back when you started this thread, it sounds like you paid $25 a contract. Jan 19 220 puts are trading at $18 as of EOD Friday.

 

[TexLaw]

Sorry to dredge up an old thread. I want some advice on a personalized license plate. A small fraction of the profits from my put options will go toward a nice vehicle. I'd like the license plate to say "TSLA PUT" but in my jurisdiction license place are only 6 characters long. Any suggestions?

JCK-ADZ

Unless you actually waited until a couple of weeks ago, you're just full of gin.

 

[Esme Es Mejor]

Sorry to dredge up an old thread. I want some advice on a personalized license plate. A small fraction of the profits from my put options will go toward a nice vehicle. I'd like the license plate to say "TSLA PUT" but in my jurisdiction license place are only 6 characters long. Any suggestions?

I’d recommend DLUSION, since you made the whole thing up. If it had been a real trade, you would have realized it lost money, and not gone fake bragging on this forum.

Only 6 characters? DLUSON should convey the message.