Rage Conversion

[TheTalkingMule]

A thread where rage filled individuals can meet with like-minded investors to brainstorm leverage in times of great shenanigans.

TSLA down 30% from it's ATH for seemingly no reason? Half a dozen positive milestones on the horizon? Perhaps it's time to consider selling a few of those shares to buy LEAPs or calls for leverage.

Let's discuss!

 

[TheTalkingMule]

Theory seems to be that hedgies will try to ride TSLA down to around $910 in the coming days or weeks. I'm thinking that might be possible over the next 2-5 trading days then we begin a recovery before 4Q earnings liftoff.

To be a responsible investor I'd sell a couple hundred shares and try to keep my leverage to mostly LEAPs. There's obvious temptation to buy a bunch of Feb or Mar calls thinking SP is bound to recover and then some just before or after 4Q earnings, but anything can happen and I don't want to risk wiping out these shares.

At $910 this week or next, I should be able to get:

March 2022 $1100c @ $60
January 2023 $800c @ $280
January 2023 $1200c @ $160
January 2024 $1200c @ $258

Selling 100 shares for $91k I'd likely go for 2x Mar2022 $1100c and then one of each of the rest. Add the change to my BPS margin cash pile in my IRA. Then sell another 100 shares if it drops further before 4Q earnings and buy roughly the same thing again.

Not in love with the idea and my rage isn't there yet, but I'm thinking about it.

 

[TheTalkingMule]

Keeping an eye specifically on January 2024 $1200c for an indicator of when to rage convert. Currently sitting at $267, down 9% from yesterday's close but higher than yesterday's low.

If SP can stay below $960 thru the weekend and then resume it's quest for $910 if/when Elon resumes selling on Monday....we might see a good window to convert to LEAPs.

I welcome any strike/expiration recommendations. My general logic will be to lever up safely out to 2023/24 with 80% of funds and semi-YOLO with March 2022 calls at various strikes. Maybe buy spreads for the LEAPs rather than naked calls?

 

[jhm]

I feel your rage, but in this shenanigan-ladled market, I don't want to touch options. With actual shares you can rid out any BS, but with options to become the plaything of market manipulators. Best of luck.

 

[ninpb]

I'm thinking of pausing my just-beginning CSP hustle and using the money to just buy 2024 calls, strikes 800 or 900. This was money I wanted to play safe with far OTM puts so I would be picking ITM calls.

With this cash, I went from, "Let's just beat the bank's rate with CSP" to "I think I can triple my 12% CSP projected annualized returns".

 

[ninpb]

Just bought a jan24 900C at the 895 dip.

 

[TheTalkingMule]

I have orders in for the first few LEAPs I want to target, at prices we should hit if SP dips below $880 this week. If they execute, I'll look to sell shares and keep buying LEAPs. Getting very gun shy with Omicron on the rise. I'd hate to miss a mega-macro-dip in January because I levered up too early and am stuck with zero cash.

 

[ninpb]

Got omicron on my mind as well. Holding rest of cash for LEAPS in case of bigger dip thinking January after holiday get togethers. That'll be hard to keep my itchy finger from pulling the trigger for that long.

 

[ssq]

Theory seems to be that hedgies will try to ride TSLA down to around $910 in the coming days or weeks. I'm thinking that might be possible over the next 2-5 trading days then we begin a recovery before 4Q earnings liftoff.

To be a responsible investor I'd sell a couple hundred shares and try to keep my leverage to mostly LEAPs. There's obvious temptation to buy a bunch of Feb or Mar calls thinking SP is bound to recover and then some just before or after 4Q earnings, but anything can happen and I don't want to risk wiping out these shares.

At $910 this week or next, I should be able to get:

March 2022 $1100c @ $60
January 2023 $800c @ $280
January 2023 $1200c @ $160
January 2024 $1200c @ $258

Selling 100 shares for $91k I'd likely go for 2x Mar2022 $1100c and then one of each of the rest. Add the change to my BPS margin cash pile in my IRA. Then sell another 100 shares if it drops further before 4Q earnings and buy roughly the same thing again.

Not in love with the idea and my rage isn't there yet, but I'm thinking about it.

Its time, aint' it?

 

[WattsHappening]

I'm thinking of doing something similar as I don't have any dry powder to just buy shares.

I'm thinking about LEAPs. But I'm also looking at bull call spreads. What do you think about a Jan 2023 BCS +1000/-1400? Sell 100 shares, go long 10 of these.

 

[TheTalkingMule]

I'm thinking of doing something similar as I don't have any dry powder to just buy shares.

I'm thinking about LEAPs. But I'm also looking at bull call spreads. What do you think about a Jan 2023 BCS +1000/-1400? Sell 100 shares, go long 10 of these.

To risky for me, I'm looking to replace shares almost exclusively with leverage I see as nearly zero risk.

Really liking the June 2023 expiration the more I think about it. All of 2022 will be in the books, the market will have absorbed the earnings we feel confident are coming, and I'll still have a bit of time on the contracts to sell in Feb-April. Maybe conservative 900/1200c spreads at that expiration?

We shall see. As of now it doesn't quite seem worth it. Not with the looming omicron surge and SP still at 900. Gonna need things to get a bit worse before jumping.

 

[ssq]

I ended up buying a few Jan 2024 500 and 700 strikes earlier this week on the dips, didn't pay much for time value and will be converting these to shares on expiry (or sooner, to start the Capital gains clock earlier), also got a few 900-1250 strikes for the next 3 months.
My shopping was not finished by the $TSLA train left..

 

[OrthoSurg]

I was about to buy my first LEAPS if the stock went into the $800s but missed I’d. I have a bit of margin left to pay from my last margin purchase at $570 from the last push down. 900 was good for me but 800 was my trigger and I didn’t pull the gun.