Offloaded my 20th Nov c300's today, which I'd bought back when the SP was around $1385 in July. 3x the original cost which isn't bad, but could and should have been better.
I also sold my 336 trading shares. I need $200k in December for completing the house purchase and I decided with all the ongoing uncertainties, better to have the cash on hand. Looks like Mr President isn't going to give up soon, and with C19 ramping up, happy to de-risk.
Good news is that I haven't sold a sing core-share, and I'm doing all I can to not to - that's why I want the IV to pick up, so I can start selling covered calls and get some free wonga.
I went the other direction and increased my risk by buying trading shares for the first time ever a little while back at $382.
I plan to sell them in the not too distant future to close on a disused 1958 log cabin (of what appears to be old growth cedar. It’s a small Pan Abode cabin:
Pan Abode Cedar Homes) that I will restore and rent.
However, my strategy is less risky than it appears, imho. Here’s why:
I’ve lived many places in the US and interacted with people at different socioeconomic levels in my life. I understand what people on the many sides are trying to express with their sometimes less than articulate statements — and, perhaps more importantly, can ignore the words that the uncharitable would put in each other’s mouths.
I also have considerable confidence in our system of governance with good reason I believe.
So I am unmoved by the tearing of hair and rending of garments. I am quite sanguine about the stability of the country and markets despite occasional bouts of drama.
If I’m wrong, I may have to dip into my core shares.
This is an investment and also a project I will enjoy: It is not my primary dwelling.
If I am
very wrong, I will walk away from the deal losing my earnest money and wait for the SP to recover. This is a slow close of 90 days. I’m guessing that the SPoon might bend in early December, but not really counting on it. (The recent S&P survey posted up thread and today’s walk down boost my confidence of this though).
I am personally more comfortable leveraging real estate than using margin for stock. Seems a shame to waste the opportunity for cheap money the Fed is offering, too.
As an aside to those who have asked about other investments besides Tesla, I will point out that I am investing in what I consider quality real estate (the cabin sits on a property that is rather nicely situated). I will also point out that, as with my Tesla investment, I have and continue to put in the effort necessary to understand what I am doing.
Not advice.