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

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My friend is getting ready to buy a new car. She is looking at Camry's. I softly nudged her to consider a model 3. Her big issue is that she is worried that her boss will be snotty about it and give her sugar for buying an expensive car. I do understand where she is coming from. Perhaps I can do some more nudging.
You can send her a winning raffle ticket for a model 3 to her office *wink*
 
Yes, I was just reading about this earlier today. Apparently options technically expire on Saturday morning. So Friday after hours changes in the stock price can impact whether the option expires worthless or gets assigned.

We had this discussion some months back, I can’t be arsed to find it, but the conclusion was that this method is no longer current, reality is that it’s as of the bell on the strike date.
 
I wish options doesn't exist. Incentivize people to gamble with money they don't have.

Huh? Options is a way to get leverage without going on margin, which is using money you don't have. Personally, I have benefited tremendously (still do, best option is now at 40x of cost basis) and I don't even have margin enabled on my account.

It's a whole different question if options market is maybe having a negative effect on the share market, making it even more lined up with short term trading vs. investment. But I don't think you can stop that except maybe making trades very expensive.
 
Yes, I was just reading about this earlier today. Apparently options technically expire on Saturday morning. So Friday after hours changes in the stock price can impact whether the option expires worthless or gets assigned.
We had this discussion some months back, I can’t be arsed to find it, but the conclusion was that this method is no longer current, reality is that it’s as of the bell on the strike date.

Option trading always stops at the regular market close. Share trading continues into after-hours. What changed in 2015 was that the published date of options expiration was posted as Friday rather than Saturday. As a practical matter, a public holder of options has until some hours after the regular Friday close to submit a request for exercise. Check with your broker. However, some non-public traders still have until Saturday morning to conclude exercise matters.
 
Kept my Model X purchase a secret for awhile for this very reason. I got some ribbing after it was eventually revealed.
As a consultant many of the employees of the company I consult for make far less than I do. This was especially an issue when the 3 was new because everyone thought Teslas were all 100k. Mine was 72, but with a $7500 credit. I made sure to stress that I was saving a ton of gas money and drove a lot. (technically true)

Discussed, not shown. :)

Yeah just ask her what the price of the Camry she's looking at and do napkin math on the fuel savings to show here how a Model 3 SR is cheaper in the matter of X number of years.

Then she can put that in her boss's face. If he/she still gives her a hard time......we'll he/she is just an a**hole
From what I can tell, said boss is. (think "Karen", and not the good kind like we had here)
 
Huh? Options is a way to get leverage without going on margin, which is using money you don't have. Personally, I have benefited tremendously (still do, best option is now at 40x of cost basis) and I don't even have margin enabled on my account.

It's a whole different question if options market is maybe having a negative effect on the share market, making it even more lined up with short term trading vs. investment. But I don't think you can stop that except maybe making trades very expensive.
When I say money you don't have, I don't mean margins. I mean money you can't afford to lose. If you can't afford 100 shares, then don't mess with the stock. Paying a premium and adding extra risk due to the fact that there's a time decay just so you can have the possibility of gains of that 100 shares is going above your means.

The get rich quick part of options with insane risk is getting a lot of these young kids in trouble.
 
When I say money you don't have, I don't mean margins. I mean money you can't afford to lose. If you can't afford 100 shares, then don't mess with the stock. Paying a premium and adding extra risk due to the fact that there's a time decay just so you can have the possibility of gains of that 100 shares is going above your means.

The get rich quick part of options with insane risk is getting a lot of these young kids in trouble.

That's your personal opinion on what the "appropriate" risk level is. Some people can't hold stocks because when the market goes down they freak out and sell at the bottom. Do you wanna cancel stonks too because of that? If we push it that far, nobody but "accredited investors" would be able to invest. Any derivatives is just a tool just like shares is an investment tool. If used inappropriately of course it'll cause trouble.
 
We had this discussion some months back, I can’t be arsed to find it, but the conclusion was that this method is no longer current, reality is that it’s as of the bell on the strike date.

Interesting. Lot's of sources still say otherwise: Expiration Time Definition
But I think you might be right, I found several random reddit posts from several years ago stating that this was changed for options expiring after February 2015. Although the sources that they point to, no longer seem to indicate that explicitly, but that maybe simply because it's no longer relevant. There's also some varying mentions of the cut-off being 4:30PM or 5:30PM Fridays.
 
That's your personal opinion on what the "appropriate" risk level is. Some people can't hold stocks because when the market goes down they freak out and sell at the bottom. Do you wanna cancel stonks too because of that? If we push it that far, nobody but "accredited investors" would be able to invest. Any derivatives is just a tool just like shares is an investment tool. If used inappropriately of course it'll cause trouble.
Yes sir, absolutely an opinion. And because it comes with that 10x multiplier, I feel that most of the manipulation originated from the options market. Just not a fan that a casino is tied to investing of a company in which the house can mess around with the worth of the company at will.
 
Why Tesla stock will rise for the 'next decade': Expert

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Why should people care at all what anyone thinks...especially if she can afford it :rolleyes:

Because that is how petty the working world is. I started a new job about a year after I bought my model s. Within the first two weeks, the ceo pulled me aside and informed me that it wasn't wise to have a more expensive car than the ceo where I worked.
 
We had this discussion some months back, I can’t be arsed to find it, but the conclusion was that this method is no longer current, reality is that it’s as of the bell on the strike date.

According to TDA, the option holder can decide up to 1.5 hours after closing bell of the expiration date to decide. Seems like this would allow gaming the system for news coming out Friday after hours. Am I missing something?

From TD:
"Expiring options will be automatically exercised if they are in-the-money by $0.01 or more as of the 3:00 p.m. CT price (for equity options) and 3:15 p.m. CT (for options on indices). In general, the option holder has until 4:30 p.m. CT on expiration day to make the final decision. These times are set by the OCC, the central clearing house for U.S. the options market. But some brokerage firms might have an earlier cutoff than the OCC threshold.

If your long option is in the money at expiration but your account doesn’t have enough money to support the stock position, your broker may, at its discretion, choose not to exercise the option. This is known as DNE (“do not exercise”), and any gain you may have realized by exercising the option will be wiped out. A broker may also, at its discretion, close out the position."