Ok. Need some Not-Advise. I’m in trouble below 690. I can sell 2000 of my shares at 700. Then I can do one of two things: 1) Buy 20X 800 strike puts for December to make spreads with 20X 1100 strike naked puts. This would cost me around $400k (plus $160k in taxes on the shares= $560k) and give me (with selling those shares) $1.5 million in margin back. Down side is I still have 1100 strike puts for December. 2) Sell the shares and Buy back 20x 1100 Puts for $900k, and have $1.6m in margin (loss offsets taxes on shares).
Option 2 costs a lot more, but may be better in December if markets are still down. I can also sell the 1100 puts again when the stock is over 900 and markets look better, and get $400k back for end cost of $500k.
Thoughts? Buy protective puts to make BPS or get rid of the puts?
Edited for some math…
I think buying back at least some of the 1100 puts might be the way to play this, especially if you have capital gains from other transactions.
1100 seems so far out. And buying 800 puts and converting them to spreads seems very risky. I might lean towards saving that margin and deploy it to buy some LEAPS if TSLA gets hit even more. TSLA might go further down this year but I just don’t see how this spring can continue to be compressed as you enter Q3/Q4.