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

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OT:

a couple years back, I built my own mining rig out of then-brand-new AMD Vega 56 video cards. at peak, I had 10 cards running simultaneously. they generated so much heat (which i moved through the house using fans) that we didn't even have to turn our furnace on all winter, and that was with the windows to my office open! They were obviously consuming quite a lot of electricity, but at the same time, Bitcoin (and the alt-coins i was mining) were going through the roof. Every coin I made, I instantly converted to US dollars. I admit i was just in it to make a quick buck and get out -- honestly i was simply more curious than greedy. Otherwise I would have HODLed more. But I always liked building and tweaking "gamer rigs" and this was beyond the mother of all gaming rigs, haha, with the added bonus that my obsession with tweaks and tuning was making me money hand over fist.

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that Spring, i sold it for more than i paid to build it, since there was no way i'd be able to run it in the house once it was warm out. also, yikes, it just feels gross consuming all that electricity no matter how much money it's generating.

I still think Bitcoin is a weird internet libertarian thing, by the way. Blockchain technology is fascinating, but the set of applications for which it's really the best solution is extremely narrow.
I want to know how you heated your home from a 110v plug? Does it not go below 60 in the winter in Virginia?
 
It's shocking just how many horror stories there are as a percentage of those who win big.

Over 30% declare bankruptcy. Many people are not equipped to handle a large and sudden influx of cash. Something to consider for those who have recently made 50-100 (or more) times their original investment on TSLA options.

Lottery winners are people who play the lottery, so self-select as people who make bad financial decisions.
 
By the way guys. You should pop over to SPCE.
Volatility of 180% with RSI of 93.

It's probably once in a lifetime opportunity to try train how to trade options in such an environment. While the potential loss from writing the wrong option and getting exercised is still low.

I executed some of the theoretical trades that I've been developing for such volatilities (vol > 100%) today and will see if they actually work.
 
It's shocking just how many horror stories there are as a percentage of those who win big.

Over 30% declare bankruptcy. Many people are not equipped to handle a large and sudden influx of cash. Something to consider for those who have recently made 50-100 (or more) times their original investment on TSLA options.
Lottery winners and Tesla longs should be given mandatory financial management classes upon cashing out. ;) The stats on lotto winners are horrible. Your risk of death skyrockets like a December 2019 TSLA call purchased in June 2019. Most of it seems to come from friends and family. People don't handle jealousy very well.

My family doesn't know what my investments are like. Pretty much only one childhood friend who is in my same economic bracket and who I trust knows my holdings and recent return history.
 
By the way guys. You should pop over to SPCE.
Volatility of 180% with RSI of 93.

It's probably once in a lifetime opportunity to try train how to trade options in such an environment. While the potential loss from writing the wrong option and getting exercised is still low.

I executed some of the theoretical trades that I've been developing for such volatilities (vol > 100%) today and will see if they actually work.

Hopefully you are talking straddles. It isn’t obvious, to me at least, which direction that stock will go from here.
 
So, the other day I was bitcoin mining with Bill Gates... oops, wait, just saw the mod note, sorry!



What's your fear? My worst case in a gap up is... the exact same situation I started in (except each time I make a gain, it's locked in, from the moment I buy back a sold call). Gap up, the resell-at-a-higher-strike order triggers, and we continue up, with me in a better position than I started.

My worst case in general is a huge SP crash that lasts for over a year, with no volatility in the intervening time; such a case would cost me a fairly minor fraction of my shares that were used to pay for the option buybacks for rolling. Fairly minor fraction, and very low SPs, because as I've (as mentioned) used a fairly nonaggressive rolling strategy that assumes that dramatic SP drops are possible (and thus backloads more aggressive buybacks to particularly low prices, when I can buy back the options for pennies on the dollar that I got for selling them in the first place)

Mostly volatility crush.
 
If I may stoke the semi-OT conversation about advertising, I see the same pattern of disruption there as Tesla causes with pretty much everything they do. Whether it's intentional or not, it just turns out that way. The advertising industry as we've known it is just as antiquated as we view ICEV's.

The whole argument of determining value of advertising was always nebulous. It's very difficult to accurately determine what the impact to the bottom line is due to advertising. 7th Avenue will tell you different but they haven't convinced Musk and they have an agenda and bias whereas Musk sees through the bu!!*sugar*.

As others have mentioned, the cost to try and curry favor from media is not only extremely expensive, there's a slim to none expectation it would actually do whats intended. Not only that but Tesla is somewhat insulated to the fabricated drama/FUD and seems to have developed a Teflon skin. Well earned and deserved I might add.

To be somewhat selfish, I would rather take the $3k per car advertising that GM spends and put it into the car or reduce the sell price by that amount since I already am Tesla aware. I don't need no stinking ads. Take my money.
 
I'm still too new to feel comfortable with buying ITM. Part of that may be because I haven't reset my risk threshold. Formerly a big play was 1k, now it should be far higher but it still feels weird spending 10k on a bet.
I'm a relative novice too;)

Just feels like the days of penny calls are over (unless it's something that expires in a day or two).

Premiums are high...feels dangerous to lose that much premium on something not very certain (OTM).

I've mostly played it safe as most of my options are 2022 bought back in Dec and then paid down the margin for 2022 calls with small plays in short term calls. If it didn't work out, I'd be paying it down slowly from the paycheck.

Thinking some 2022 calls could still be well profitable.

Like 6/22 400c-450c you only pay ~ $40/share from the current SP to get a 2x leverage.
I think it's a sort of safe play to say SP will go up by $40 in 2 years.
But this requires significant money and willingness to wait (the benefit of waiting is lower tax rate).

I'm not super positive about high strikes like 1300-1600. May or may not happen, high risk.

But the notion that you need to pay $100/share premium for a 6/2022 1600c is shocking to me as well.
Back in Dec I joined @SpaceCash in paying $22/share for a 1/2022 640c, so these new premiums are hard to swallow for something deep OTM.
 
I was under the impression that Lithium Iron Phosphate was old school tech that's not relevant for modern EVs.

Would it be beneficial for Tesla to use lithium iron phosphate to replace their 12V Lead Acid battery? Article could be bogus like many rumors, but trying to understand whether there are other ways this could work.
It's not really "old school tech" just lower energy density tech. It has high cycle life and can have high C rates. I also considered the possibility of using it for their 12V battery, no sulfation issues, better charge efficiency, high cycle life, the only possible drawback is charging below freezing, but I believe there have been some advances in that area.
 
So, the other day I was bitcoin mining with Bill Gates... oops, wait, just saw the mod note, sorry!



What's your fear? My worst case in a gap up is... the exact same situation I started in (except each time I make a gain, it's locked in, from the moment I buy back a sold call). Gap up, the resell-at-a-higher-strike order triggers, and we continue up, with me in a better position than I started.

My worst case in general is a huge SP crash that lasts for over a year, with no volatility in the intervening time; such a case would cost me a fairly minor fraction of my shares that were used to pay for the option buybacks for rolling. Fairly minor fraction, and very low SPs, because as I've (as mentioned) used a fairly nonaggressive rolling strategy that assumes that dramatic SP drops are possible (and thus backloads more aggressive buybacks to particularly low prices, when I can buy back the options for pennies on the dollar that I got for selling them in the first place)
You're making so much money Karen you're going to be able to reforest all of Iceland. yet another positive feedback loop enabled by Tesla...
 
It's not really "old school tech" just lower energy density tech. It has high cycle life and can have high C rates. I also considered the possibility of using it for their 12V battery, no sulfation issues, better charge efficiency, high cycle life, the only possible drawback is charging below freezing, but I believe there have been some advances in that area.
I see these batteries used in campers but so far you can’t charge them below freezing. I really hate leaf acid batteries as you don’t know how long they are going to last, my experience is anywhere from 2 to 6 Years depending on temperature etc. has to be a better solution!
 
I'm a relative novice too;)

Just feels like the days of penny calls are over (unless it's something that expires in a day or two).

Premiums are high...feels dangerous to lose that much premium on something not very certain (OTM).

I've mostly played it safe as most of my options are 2022 bought back in Dec and then paid down the margin for 2022 calls with small plays in short term calls. If it didn't work out, I'd be paying it down slowly from the paycheck.

Thinking some 2022 calls could still be well profitable.

Like 6/22 400c-450c you only pay ~ $40/share from the current SP to get a 2x leverage.
I think it's sort of a safe play to say SP will go up by $40 in 2 years.
But this requires significant money and willingness to wait (the benefit of waiting is lower tax rate).

I'm not super positive about high strikes like 1300-1600. May or may not happen, high risk.

But the notion that you need to pay $100/share premium for a 6/2022 1600c is shocking to me as well.
Back in Dec I joined @SpaceCash in paying $22/share for a 1/2022 640c, so these new premiums are hard to swallow for something deep OTM.

I don't quite understand why people aren't willing to believe that when a company is growing 40-50% YoY, the stock wouldn't follow suit to some degree. Artificially holding the price back while the company wasn't profitable was much easier than it will be now. Everybody should be able to understand the growing revenues and profits year over year and it's pretty hard to sell the "everything they touch loses money" ideology.
If the market hums along as it has been, I don't see 2000 as unrealistic at all by June 2022. Maybe 4-5,000+ if we win the autonomy race.

If you want to factor in a deep recession, that's almost a separate issue from Tesla, but should definitely be considered as a possibility.
We could hit 1600 after the S&P500 inclusion, after battery day gets us much higher. WAG but that's only this summer(most likely) and more of a product of a squeeze than true valuation. Look at what has happened with other large companies that were heavily shorted which then became profitable, they don't typically stay flat as they grow.

You can call them lottery tickets, but you gotta play to win ;) I sure did back at 200, the stock felt undervalued then but the outlook of the company was not nearly as bright as it is today. IMHO.
(The actual lottery is for the mathematically impaired, don't do it!)
 
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This morning, I received an offer from Schwab for a line of credit on my account, so long as I agreed to initially take at least 70% of the offered line of credit. I did not apply / ask for this. It could simply be an algorithm that triggered to send the offer after my account passed a set value. I also note that this account is mostly TSLA and I don't have any margin use or any other reason to allow my shares to be lent out.

Anecdotal, but maybe another example of firms trying to shake some shares loose.

I got the same offer
However, if you go into fine print, the amount that you can take is the inverse as to what the margin maintenance of said stock
So for TSLA, there is a 75% special margin maintenance so you can only take 25% from the line of credit.
Conversely, for AAPL, there is no special maintenance (the usual 30%) so you can take 70% of the offered line of credit