The dip today is too severe for it to be part of a smaller degree sequence. If I was a bull with money, I'd try to get 205 at all costs before letting it go. It's much more cost effective than trying to extend wave 3, only to orchestrate another dip for wave 4.
big runs start once all the initial dip buyers have either cashed out of been squeezed out of the stock. People have to say "here we go again, new lows incoming" before we go higher. We're not there yet. Wave 1 is not the place for that big run anyway.
I guess I shouldn't say things too definitively. It's not that the dip is too severe for a smaller degree sequence. It's just that the smaller degree sequence I have in mind, given the current backdrop, is too small for a dip of this magnitude. If tomorrow I wake up and Buffett says he's buying TSLA, sure, we can go straight to 209 in one session and we'll probably end wave 1 @ 230. For the time being, I'm gonna be cautious and assume nothing crazy is going to happen this week. I DON'T think 200.77 is the top, for what it's worth. Momentum is still there.
I had to sell 40,000 shares to pay to buy back DITM BPSs, that would have probably been ok in 2024, to avoid margin call. Those shares are gone forever.
Probably more risk, you have to be fully convinced that we are near the bottom. I had a bunch of shares that I bought for buy/write buy tsla kept dropping and there wasn’t much I could do.
I'm just wondering for day trades why not just day trade something like QQQ or SPY instead? At this moment in time (Short term) TSLA is under performing it's beta so you would get just as much return from an index day trade as you would from trading TSLA, but the downside isn't as bad.
I've gotten pretty good at churning TSLA for $1 several times a day using the Fibs. I'll have to see if I can do the same on the QQQ. The missile strike was kind of a one off that crashed everything.
Because if the SP keeps dropping I need to sell those shares for extra Margin, and the more it drops, the more money I would lose selling them. They were a few thousand shares I was churning (successfully) when TSLA was in a tight range until the missile hit Poland.
Fair enough, if you have a decent feel of the technicals + gut feelings on the stock then of course trade what you know.
Yes when TSLA is in a weak position -3-6% days are not uncommon and selling CC's may be a good way to generate income but it's like putting a band aid over a missing limb.
I use TD and whenever I try to sell options on QQQ or SPY they require much more margin than other securities. I sell options on ARKK and other stocks without owning the underlying stock and the margin requirement is much less. Anyone else have this experience?
from my limited experience, daytrading on SPY is better but the problem is
Agreed, I have a set of friends whose SPY strategy is to play inverse ICs and bet that it is volatile. They win when SPY goes up or down ~>1%, lose when SPY is stable. Typically it takes 10 wins to outweigh 1 loss, but they've ended up winning like 20:1 but the premiums are lower, like you mention, and it ends up being a job (4 to 6 hours a day job).
