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

Zaxxon

Supporting Member
Dec 11, 2012
4,620
21,174
Colorado
Also, just had to re-post this one from Friday...

My real question for options.... does all the volatility go away after today?
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Green Pete

Active Member
Oct 8, 2016
1,187
5,926
Earth
@Green Pete

While I admit I don't do options trading, what did I miss there? That, if the stock price declines the value of your shares declines so you lost value vs. simply selling at $500? But that would be the same result if you placed an order for [email protected]$500 -- it wouldn't fill if the stock didn't reach $500 and you would not even have the profit from having sold the call.

Anything else?

1) The Basics of Covered Calls


1) your response was pretty rudely worded
2) by having sold a call they would have cash on hand as proceeds from the sold call and still have an asset that in theory long term holds more value than it would even at the dropped price.

Personally I never sell calls or puts, I like having definite down side. But I do see the upside of selling a call in a situation where you are considering selling.
 
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humbaba

sleeping until $7000
Aug 25, 2018
2,249
13,140
planet earth
1) your response was pretty rudely worded
2) by having sold a call they would have cash on hand as proceeds from the sold call and still have an asset that in theory long term holds more value than it would even at the dropped price.

Personally I never sell calls or puts, I like having definite down side. But I do see the upside of selling a call in a situation where you are considering selling.
Yep, what I had as 2B -- they would have cash on hand, the $X * 100 (minus fees), and the shares. So I didn't miss anything. Thanks!

edit: as to rude? Ah, I think I see what you mean. If so, my apologies. I definitely have no intention of offending anyone.
 

corduroy

Member
Jan 30, 2018
543
3,401
Earth, for now (sigh)
Quick story:

I bought TSLA after reserving my Model 3 a few years ago, my plan was to hold pretty much forever. I was into Tesla hook line and sinker, I'm a lifer. I never thought I would sell, then Covid hid and it shook me out of my position at 820. I was certain it was going to be a rough Q2 and I would buy back after everything settled down, and anyways, I made a nice gain. Then the mother of all rallies hit. Every day I watched the stock thinking, I can't buy now it's too high. I said that at 900, 1,000, 1,200, 1,500, 2,000. Then the split, I can't buy now. FOMO is a real thing.

Finally this morning, I put all that aside and bought back in my original amount of shares. Yes, it is 6 times less that I would have had, but I'm trying not to think of that. It feels great to be back on this ride!
 

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