having watched these swings for a while now, I do my best to stick with the level of risk I can live with, assuming I will not have the time needed to get out manually if things drop big time. some of the biggest changes happen after market or just out of the blue over a matter of seconds. If the potential for loosing those 25 shares is not risking food on the table, I'd probably stay in and watch just for entertainment and learning's sake, knowing that maybe, just maybe, you'd see some really big returns long term. It's entirely possible that someday, TSLA will be 10X what it was when you bought in and I believe with each day that passes, the risk that Tesla is a flash in the pan, diminishes significantly.
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Requests for advice (getting advice or not, either way it's your own responsibility)
- Thread starter mikeschuld
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having watched these swings for a while now, I do my best to stick with the level of risk I can live with, assuming I will not have the time needed to get out manually if things drop big time. some of the biggest changes happen after market or just out of the blue over a matter of seconds. If the potential for loosing those 25 shares is not risking food on the table, I'd probably stay in and watch just for entertainment and learning's sake, knowing that maybe, just maybe, you'd see some really big returns long term. It's entirely possible that someday, TSLA will be 10X what it was when you bought in and I believe with each day that passes, the risk that Tesla is a flash in the pan, diminishes significantly.
kishdude
P #130
When you are holding deep in the money calls, the risk is high (i.e. you have a lot of money out there that can evaporate quickly if the stock drops). I'd probably sell some at least and wait for a pull back and reload.
I would guess you are a pretty young guy. Probably in your late teens or early 20s. Since $6,250 is not a lot of money when you look at present life and your future life, I would suggest you hold on to this stock for another five years and see how it works out. Re-evaluate again at that time. The market cap is only $30 billion, it's possible one day it goes over $100 billion. Meanwhile if you hold the stock, you will keep up with the story. Story like this, men like these, comes around once every 10 to 20 years.
Haha I wish this were true. Then I could essentially 10x my net worth every decade!
Not enough capital to take profits on; you'll be tempted to time the small ups and downs, probably miss many of them, and meanwhile miss the big picture rise. you'll make more in time if you hold it (even more so if there are taxes involved). Only sell if there's really bad news but be ready to buyback at a moment's notice in that rare event. Meanwhile, go study options and come back in six months and then consider turning some of that stock profit into options plays to leverage it into faster returns (not that the TSLA isn't fast).
Haha. Thanks for taking the time to make your first post for me. Unfortunately, I just turned 31 and was very late in the game looking at investing in stocks to make money. I've got a decent start on a retirement account and make a decent salary finally, but I am by no means able to make huge stock purchases. I appreciate your input though and really do want to hold onto the stock and see where it goes. It is not like I really have anything else that I want to "gamble" the small amount of money on anyway. Why not Tesla since I love their business model and their goals. If I make some money off of it later on then great!
anticitizen13.7
Not posting at TMC after 9/17/2018
My general recommendation is to hold those 25 shares, because Tesla as a company still has a long way to go in terms of the overall plan.
The stock will only continue to rise, assuming that the company can continue to successfully deliver on their roadmap: Model X, Gigafactory, completion of the Supercharger network, China/Global expansion, and finally Model E and beyond.
Think of where Tesla is now as roughly analogous to Apple a couple months after the original iPhone. iPhone proved that large screen touch phones could work well. Model S has done the same for EVs, but in a more spectacular fashion. If the stock is close to $250 now, it's going to be absolutely bonkers leading up to Model E.
thanks. You and few others on here have convinced me to keep on going.
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It's never too late to start investing. Hopefully you are contributing to a Roth IRA. I am similar in age to you but started investing about 5 years ago (and it's been up and down, especially with option plays, but overall up thanks to trading TSLA shares and options tax-free in my Roth IRA). There's a senior member on this board (Curt.Renz) who has many good posts. He recommends hedging your long share position with put options to avoid short term taxable rate (%25-28), but I don't think your capital amount at risk (25 shares) warrants paying the premium for expiring put options.
GasDoc
Member
I've never traded options before and am thinking of taking a small percentage of my cash (maybe 5% of my overall portfolio) to use options as a way to hedge.
My holdings are in a 401k and a Roth Ira.
What do I need to ask my brokerage in order to do these types of trades?
Can people recommend in introductory primer to read?
My holdings are in a 401k and a Roth Ira.
What do I need to ask my brokerage in order to do these types of trades?
Can people recommend in introductory primer to read?
@GasDoc: You'll want to request Level 2 options trading rights, which authorizes you to buy puts and calls, and to write covered calls and protective puts. That's probably as high a level as you'd be granted given your lack of trading history. You'll want to move up to higher levels as you can so that you can undertake some of the more sophisticated options strategies people discuss here, such as bull call spreads and iron condors. Curiously, these strategies can have less risk than Level 2 strategies, but as they require some care to set up correctly, they Powers That Be want to limit them to experienced traders.
GasDoc
Member
So my options, regarding options, are:
1-Covered Writing
2-Creating Spreads*
3-Purchasing Puts,Calls and Index
4-Uncovered Writing
I should check off the boxes 1 and 3?
Sorry for the newbie questions. Gotta get started somewhere...
So, I had bought a 2016 Jan call at 240 strike before earnings report. Now up 81%. On advice before earnings call to hold on, I decided to buy more shares. Total holdings is 40 shares ~$190. Would any of you take any profits off the table? I was debating on doing that for the call option with such a large gain.
20 shares is a RRSP (401k equivalent in Canada)
15 shares in Tax Free Savings Account (but really an investing account)
5 shares and options in Margin account.
20 shares is a RRSP (401k equivalent in Canada)
15 shares in Tax Free Savings Account (but really an investing account)
5 shares and options in Margin account.
pz1975
Active Member
Requests for advice (getting advice or not, either way it's your own responsi...
@CaptainKirk:
If you are bullish long term, you could sell your Jan16 240 call and roll it up to 2 higher strike calls each costing half the price. Your overall delta (increase in value of these calls per dollar of stock price rise) will be greater - ie. you will make more money overall as the stock goes up.
@CaptainKirk:
If you are bullish long term, you could sell your Jan16 240 call and roll it up to 2 higher strike calls each costing half the price. Your overall delta (increase in value of these calls per dollar of stock price rise) will be greater - ie. you will make more money overall as the stock goes up.
Mario Kadastik
Active Member
Or go for 2 calls, but with total same delta, you should get same delta exposure, but keep some of the funds from selling the call.
Lauren Martins
New Member
Girl inv help! I Started with 25 shares and manage to make 41 but I sold at $214 mist
Here is a resume about Lauren Martins
I following tesla since the start, I ended up learning to invest on my own, with the up and downs I manage to go from 25 to 41 shares valued around $10.000;but I sold it at $214! mistake! ;So glad I found this forum! I want to learn how to short
Cheers Lauren
Here is a resume about Lauren Martins
I following tesla since the start, I ended up learning to invest on my own, with the up and downs I manage to go from 25 to 41 shares valued around $10.000;but I sold it at $214! mistake! ;So glad I found this forum! I want to learn how to short
Cheers Lauren
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Jonathan Hewitt
Active Member
Here is a resume about Lauren Martins
I following tesla since the start, I ended up learning to invest on my own, with the up and downs I manage to go from 25 to 41 shares valued around $10.000;but I sold it at $214! mistake! ;So glad I found this forum! I want to learn how to short
Cheers Lauren
Wrong forum. Best of luck to you, though.
mershaw2001
I'm short the short sellers
Hi Lauren, I'm glad you want to learn how to short. There are plenty of people out there who will tell you when something is a good short, in fact I can suggest one of the best. This man will help you learn:
Douglas Kass (DougKass) on Twitter
Douglas Kass (DougKass) on Twitter
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