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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
Knightshade
Well-Known Member
... I did.
At the time I opened the overall position I was effectively putting about 1 shares price in cash into buying each later-expiring 2500 call option, it was that cheap by offsetting the cost selling an earlier expiring 2500 call.
It was only by virtue of the shares rising over 30% after that, more quickly than anticipated, that I had to put more $ in to prevent the earlier sold calls from exercising, though not so much that the later calls aren't still profitable.
I mean, sure- if I had known the EXACT speed with which the SP would hit 2500 (500 post split) I could've made more without the sold calls.
But then if one somehow magically knew the exact dates then the "bullish" move would've been to sell ALL my shares and buy JUST calls, including maxing margin to do it- right?
Did you do that? No? Why are you so bearish?
Well that's just a guesstimate for Elon, who knows what is the real value of SpaceX, not to mention Boring and Neuralink.
If those 3 comps were public he might be worth more than Jeff already...
+ Chanos & Einhorn would be even more in the red for shorting those too
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mejojo
Active Member
Do you have family that could use some help to enjoy their lives better? Do they need a new car? Some help with the rent or mortgage?
Local food banks? You could do serious help with a small amount of your TSLA gains.
Larger entities like FeedingAmerica or World Central Kitchen.
Semi-mod: I don't find sexist jokes funny. I would like them to stop. --ggr
Knightshade
Well-Known Member
Yup- had to sit on hold like 40 minutes to buy to close those calls I'm talking about since they're unavailable to do so until tomorrow online.
On the bright side there was about a $12/share pullback while I was on hold so that saved me a few bucks
lafrisbee
Active Member
StealthP3D
Well-Known Member
Yeah, that's bad but the stories of brokerages not being able to reflect the true number of post-split shares in an account (because they couldn't get them in time) when the split happened a full week ago is what really seems whacky.
On another note, don't tell anyone, but we are up $275 today in pre-split dollars! Shhh....
lafrisbee
Active Member
lafrisbee
Active Member
mejojo
Active Member
Boner play of the day..... I had 100 (post split) 9/4 450C and 125 9/11 500C. Sold them an hour into the day. Please don't do the math for me. Yes, I did do lots of other things to rate a $400K gain today, but sheesh........what coulda been.
If there is a "Today's Best Post" category - this would be the winner.
Sudre
Active Member
That is not how options work. If the SP drops under $500 close time Friday then he get to keep the $1700 and play again the following week. Alternatively someone can exercise early and buy the shares at $500 a share when they are not worth $500 a share yet. BONUS because you can then buy them back and resell another Call at $500. Problem can be most people use platforms with HIGH trading fees.
I've been reading a bit, and I think the general message of "stock split doesn't change anything" is fundamentally right, psychologically flawed.
The market is partly driven by sentiments, or dare I say largely... often you have news on companies that doesn't change anything fundamentally and yet stock would skyrocket/fall off the cliff.
The split, not only showing Tesla's confidence in the long run, but also adjust investors, especially retails, perceptions greatly.
Say the stock was 2200 last week, which for many could be a month worth of disposable income, drops 5%, or $110 in a day... that's a psychologically big number for some. As they will think about what could I have done with $110. Maybe 2 PS4 games, a night out, meal for the whole week... etc.
Fast forward to today, at 440 a share, a 5% drop, or $22... which many novice retail investors would still think "what could I have done with $22"... well... not much.
So I think we should look the split from a sentiment perspective, at least partially, and then derive the fundamental value change to stock like TSLA.
The market is partly driven by sentiments, or dare I say largely... often you have news on companies that doesn't change anything fundamentally and yet stock would skyrocket/fall off the cliff.
The split, not only showing Tesla's confidence in the long run, but also adjust investors, especially retails, perceptions greatly.
Say the stock was 2200 last week, which for many could be a month worth of disposable income, drops 5%, or $110 in a day... that's a psychologically big number for some. As they will think about what could I have done with $110. Maybe 2 PS4 games, a night out, meal for the whole week... etc.
Fast forward to today, at 440 a share, a 5% drop, or $22... which many novice retail investors would still think "what could I have done with $22"... well... not much.
So I think we should look the split from a sentiment perspective, at least partially, and then derive the fundamental value change to stock like TSLA.
Well, I have cash ready for a dip to buy some LEAPs but looks like I may be waiting a while. I guess I'll sit on the remaining 90% of my core shares and keep selling super OTM short term calls.
That's the beauty of the split....everyone only 'sees' a +$55 gain
engle
Member
This is crazy I never dreamed I'd be up more than a Founder's Roadster on paper in one trading day!
I will be watching *very* carefully tomorrow at my TMC desk at 6 am PDT in case I decide to sell 10% of my position in a Roth tax-free. I've never sold or "swing traded" any TSLA before except to transfer into non-taxable Roth IRAs, but this is getting *really* frothy IMHO. I delayed lunch by an hour today just to witness the close.
Most of the newer Robinhood traders don't have our long term conviction and will probably sell at the drop of a hat when this party starts to end.
S&P 500 CAGR is 12.56% since 2014. We just did that in one day!
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Congo Line
(not the dance)
I can't help but wonder how many uninformed retail investors are viewing now-outdated YouTube and internet material with pre-split price targets, and getting excited about a ~$490 investment turning into $7k by 2025.
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