Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[Bet TSLA]

Yes, buying and holding shares was very profitable during that same time period as well. I should note that i held TSLA shares and didn't have any excess capital to deploy, but i wanted to use options to play Q2 earnings. My first TSLA option trade was on July 13th ($299.31 Share Price)- a long call (1900 strike, 7/24 expiry) purchased in hopes of positive Q2 earnings and S&P inclusion, which expired worthless. After that i started selling put options, and using the proceeds to buy more shares. During this time period i purchased 900 additional (post-split) shares.

I held about 5000 shares across various accounts during this time period. The sale of options netted me $500k in addition to any share price appreciation. In hindsight i started selling premium during a time of elevated implied volatility following Q2 earnings, and the share price rose from $299 to $500+, so selling puts (and eventually covered calls) was a relatively safe and very profitable strategy.


Not advice, and i realize this is the wrong thread to discuss derivatives. This thread has been immensely valuable for anyone interested in learning more:
Applying options strategy 'the wheel' to TSLA

Well, if playing the options and margin game netted you $500K on a $1M investment then that's no better than buy and hold. But your statements are very confused as to how much you put at risk and how much you made. Sounds like you had several accounts and far more than $1M in play. So, while you certainly did well, I don't see anything here beyond "I went way out on margin and made a ton of money". Everybody who tries that is a genius when the stock goes up 50%, but not so much when the stock is flat or down.

My portfolio was up 62.5% from July 9 to November 9 (the four months you spoke of). I avoided margin, but was mostly playing options. In retrospect, buy and hold would have worked almost as well with not nearly as much work and worry.

 

[⚡️ELECTROMAN⚡️]

Ughh, this is shaping up to be another tough day for the stock. Not to be political but just wondering if the tech sell-off is a reaction to a Biden administration viewed less favorable to tech? I’ve heard ARK Invest Cathy Wood state that a Biden administration is not great for an innovation agenda. Thoughts?

I think her concern is for up-and-coming, and the forming of new innovative companies. She isn't worried about the established players.

 

[wipster]

How much does Waymo spend to pay engineers to drive their cars around? Asking for a Martian friend.

Tesla FSD beta performs smooth 180-degree forced turn in real-world test

Waymo than Tesla!

 

[LTC_RRR]

Well, I thought about downvoting this, but instead here’s another crazy idea. Have the boring company connect all of the superchargers with HVDC lines, then Tesla can control routing of renewable electricity across the country in any direction at all times of the day or night.

At $10 million per mile of tunnel, the infrastructure to support this would have an astronomically large cost.

 

[AudubonB]

In a similar vein to the RNA vaccine printer, I had been wondering about whether the now long-passed situation of Tesla looking into hospital ventilators:

To the extent the new administration - regardless of whether it’s a second term for the current one or a new team - embarks on an all-hands-on-deck action to combat the pandemic, does Tesla have the ability to create the material and even sew masks? I suspect that whatever medium its autos use for their HEPA filters are not made in-house, but it would be interesting to learn if it could be. IT boggles my mind to think that 3M or whoever would not grant, for a fee, such permission. And sewing - a mask, or medical clothing, is a lot different from sewing a passenger seat but that’s all variation on a theme.

Tesla has shown a pretty good record of ramping things up to git ‘er done. Would this not be right up its alley?

 

[Big Time]

GO TESLA GO GO GO

 

[Nocturnal]

In a similar vein to the RNA vaccine printer, I had been wondering about whether the now long-passed situation of Tesla looking into hospital ventilators:

To the extent the new administration - regardless of whether it’s a second term for the current one or a new team - embarks on an all-hands-on-deck action to combat the pandemic, does Tesla have the ability to create the material and even sew masks? I suspect that whatever medium its autos use for their HEPA filters are not made in-house, but it would be interesting to learn if it could be. IT boggles my mind to think that 3M or whoever would not grant, for a fee, such permission. And sewing - a mask, or medical clothing, is a lot different from sewing a passenger seat but that’s all variation on a theme.

Tesla has shown a pretty good record of ramping things up to git ‘er done. Would this not be right up its alley?

I have to imagine that really getting into healthcare would be a metric pain in the arse with extra regulations, lawyers, approvals, testing etc. to deal with.

 

[AudubonB]

As opposed to the transportation sector.

By the way, I am still using my 3M N95 masks - thank goodness we go shopping only 2 times a month or so, though even with that they’re getting long in the tooth. I had a small supply because of my wood- and metalworking (and, as you know, I still got sick but that wasn’t due to faulty masks). I do not think the criteria for them to achieve their stated efficacy is horrendously bureaucratic but again, my thought is that Tesla would be using the procedures established by 3M (or whoever) that should have been what passed regulatory muster. I think.

 

[SOULPEDL]

Ughh, this is shaping up to be another tough day for the stock. Not to be political but just wondering if the tech sell-off is a reaction to a Biden administration viewed less favorable to tech? I’ve heard ARK Invest Cathy Wood state that a Biden administration is not great for an innovation agenda. Thoughts?

Not sure about the other States, but Az is very close to turning the ACA blue (Arizona Commerce Authority) next election cycle, and they are in charge of Utilities for this State. This will lead to more economical solar on rooftops.

Although I agree with Cathy in general here, this time's different IMO. Green innovation is ripe bc the people will be (and are) voting with their wallets on this. When the economics are clear to folks, enough people will change their habits... and soon. Low-cost batteries make this possible bc Solar is double potent with batteries. Innovation will chase this new climate problem with fury.

And something else is different now. Political Funding with Dems is huge now. And thanks to Tesla, I'm part activist now. Head-spin for those who knew me just a few years back. New sense of purpose for me.

Mod: for those asking "where is the line" for political posts... this is a good example of very close to the line. Hence it is still here. --ggr

 

[Lessmog]

I go off-wall a lot. We should all go there. A child likely has a better shot at predicting the future at this point, IMO.

What am I doing writing here again? You people are like a drug. Seriously, I've got a new board to hand solder. How is THIS more interesting?

See ya round next SP-ike!

Now, that's a hot board meeting!

- - -
Currently at 57% TSLA/Cash ratio in IRA. I moved my target from TSLA 50% to 60% hoping for some good deals, and bc I never actually got to 50% since IDK when in the past 4 yrs. It's so hard not to buy this stock. Heck, maybe I need the cash for Neuralink IPO... or maybe Neuralink itself! My memory sucks, going bionic soon I think.

Strong recommendation: delegate that connection work!
Don't expose yourself to excessive exposure to tin, lead.
Otherwise, solder on. Wall-wall pedal to metal.

 

[insaneoctane]

I love the fact that GM is up 3% today...because they have a plan.

Yes, but this is the reason why we are rewarded (ultimately) because we can see through the MSM and analyst's ironic dribble and we keep our eye on the prize.

 

[dl003]

Well, if playing the options and margin game netted you $500K on a $1M investment then that's no better than buy and hold. But your statements are very confused as to how much you put at risk and how much you made. Sounds like you had several accounts and far more than $1M in play. So, while you certainly did well, I don't see anything here beyond "I went way out on margin and made a ton of money". Everybody who tries that is a genius when the stock goes up 50%, but not so much when the stock is flat or down.

My portfolio was up 62.5% from July 9 to November 9 (the four months you spoke of). I avoided margin, but was mostly playing options. In retrospect, buy and hold would have worked almost as well with not nearly as much work and worry.

While I agree with you, I think the $500k he made was on top of the stock appreciation since he's long shares. We're probably looking at $500k unrealized + $500k realized gains.

 

[insaneoctane]

Man, I wish I could have been paying attention and picked up some $3XX shares earlier

 

[juanmedina]

While I agree with you, I think the $500k he mad was on top of the stock appreciation since he's long shares. We're probably looking at $500k unrealized + $500k realized gains.

Yeah I don't understand what is the negative connotation of selling covered calls while holding. We might make a little extra money here and there while holding vs trying to time the market by selling and buying.

 

[heltok]

Maybe a bit OT, but the new Apple CPU M1 looks pretty damned awesome. 1/4 power for same performance as latest intel, 2x top performance, 5nm. Tesla should ditch AMD and get these for their next gen MCU.

 

[Rotte]

I accidentally clicked on this from Mark Speigel. Talk about delusional.
There Is No China Growth Story For Tesla; Company Headed To Zero: Shortseller

 

[AudubonB]

"Company headed to zero shortsellers"? Am I reading this correctly?

 

[LTC_RRR]

The king of the Nurburgring says the model 3P is the perfect ring tool! High praise.

The Tesla's acceleration was awesome to see as they blew past the other cars whose ICEs were slowly winding back up.

 

[WattsHappening]

Yeah I don't understand what is the negative connotation of selling covered calls while holding. We might make a little extra money here and there while holding vs trying to time the market by selling and buying.

I don't think there's any negative connotation to selling covered calls. It's simple and very low risk (other than the risk of having long term shares being called away). Selling way-out-of-money covered calls has been a great way to create some income. It was MUCH MORE FAVORABLE before battery day, when time premiums were crazy high. Not nearly as compelling today, but still a good strategy depending on your individual situation.

 

[LTC_RRR]

I accidentally clicked on this from Mark Speigel. Talk about delusional.
There Is No China Growth Story For Tesla; Company Headed To Zero: Shortseller

Dripping with bile!