The 2014 Tesla Motors stockholder meeting scheduled for June 3 at 11:00 am PDT will be webcast to the public: http://www.teslamotors.com/about/pr...annual-stockholder-meeting-and-public-webcast
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Social Chat - Short Term TSLA Movements
- Thread starter Jonathan Hewitt
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The 2014 Tesla Motors stockholder meeting scheduled for June 3 at 11:00 am PDT will be webcast to the public: http://www.teslamotors.com/about/pr...annual-stockholder-meeting-and-public-webcast
doggusfluffy
Closed
Pretty much the same here. I bought a 215 today and two 225's as a lottery ticket.
What time is the call? I might be sitting in the service center when it happens. If it turns out good I'll go buy them a case of beer. And tell them to thank their boss.
PS: I hope I have to buy a case of beer on Monday.
Updated: (Oh shoot, it's Tuesday, never mind. )
Hi. Would someone be willing to explain to a complete novice what this lottery ticket type of weekly order(s) means? I get conceptually at the end of a week you think the stock price will be up to 215 or as a wilder gamble yet to 225 per share. How would that be described in plain english perhaps? I'm not asking for specific advice as much as hopefully less lingo or shorthand so that I can learn more and ultimately understand what you're talking about better.
Thanks
Short-term options react to changes in the price of their underlying stock in an exaggerated manner. For example, the price of the stock may rise 2%, and the corresponding weekly option may rise 100%. On the other hand, if the stock drops a few % (or doesn't move at all as the option expiration approaches), the option price will approach zero and ultimately expire worthless.
That's extremely oversimplified, but hopefully it gives you an idea of what folks are talking about.
In the example of the Detroit show, people who were Johnny-on-the-spot buying weeklies right after Jerome let the cat out of the bag were able to sell them for obscene gains later that day as the news sunk in and the price of TSLA jumped.
That's extremely oversimplified, but hopefully it gives you an idea of what folks are talking about.
In the example of the Detroit show, people who were Johnny-on-the-spot buying weeklies right after Jerome let the cat out of the bag were able to sell them for obscene gains later that day as the news sunk in and the price of TSLA jumped.
doggusfluffy
Closed
Thank you. I got the lottery ticket analogy of either an obscene big winner or a worthless scap of paper depending on the events of the week when it expires. A pure gamble. Is there an online simulator or calculator or something you might recommend that I could play with to learn a little more and possibly model a 215 and 225 movement in TSLA scenario?
Of course to trade options you must first be a client of a stock brokerage that has approved you for an options account. Here is the tutorial from the Chicago Board Options Exchange where I took classes, participated in mock floor trading, and daily interviewed market makers: http://www.cboe.com/LearnCenter/Tutorials.aspx
pz1975
Active Member
Honestly it is easier to just do it in your head.
For example (hypotheticals), if the stock is 205 and you buy 1 weekly 215 call for $100 and the stock jumps up to 220, then the option will now be worth $900ish ($500 because 220-215 = 5 + $400ish for time value + IV). If the stock closes at $220 on Friday then that option would be worth $500. (Most people would sell it before close to avoid having to actually buy the 100 shares.) So your $100 investment got you $900 if you sell it right away, which is a 9 fold return (9-bagger).
Now, same situation, but you buy the 205 call for $400 instead. The stock jumps to 220 - now it is worth $1,900 ($1,500 because 220-205 = 15 + $400 for time value + IV). So this time your $400 investment became $1,900, which is almost a 5-bagger.
You can quickly make these calculations in your head looking at strike prices and contract costs, then estimating return based on different scenarios of what the stock moves to.
If the stock stays flat, goes down, or only goes up a bit, then the 205 call will retain more value (less % loss); thus, it is safer to buy an at-the-money call but less potential for major return if the stock goes way up.
I don't really see it as a lottery ticket because if nothing happens during the 2 hours meeting, I am planning to just sell all my calls afterwards for minimal loss (assuming it doesn't drop much in the meantime). Kind of low risk, potential high reward.
To all TMC members attending the shareholder's meeting. Wish I was there, I know it will be fun. Ask meaningful questions as we will all benefit from the answers! Especially counting on Flux and DaveT to 'hog' the microphone:wink::biggrin:
StapleGun
Member
Just got to my seat, front row :smile:. I don't think I'll be asking questions but I hope to see some other TMCers on the mic as well.
Excellent!!! Here is link to current fluid discussion on TMC about questions to ask. Also, please steal the microphone from anyone who asks for a job this year! Thanks Al:wink:
PS>>>Have fun http://www.teslamotorsclub.com/show...-Annual-Shareholders-Meeting-on-June-3rd-2014
The Blue Owl
Endangerous Herbivore
I joined the few others in line for a lottery ticket and I got me some $215 weeklies. I'm hoping Elon announces a vertical take-off and landing option for the Model X.
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