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

[SpaceCash]

Yeah, ETrade was bad enough already. They just screwed up one of my stock donations to charity. They seem to do this all the time.

When I bought my bike 2 days ago, I was on the phone with them for a WHOLE hour getting them to raise my daily spending limit on my account-connected debit card to $12,000, and then when I finally ran the card it got declined, I got hit with a fraud alert, and spent another hour on the phone with them before being able to successfully run the card.
They suck now I used to have zero problems with them.

 

[pz1975]

If you are a sold out bull, or would like to increase your long position at a lower price,
the Neroden strategy of selling an out of the money put Is appealing.

For instance, sell the sept 650 puts and Collect the premium.
If the price breaks, and you get filled, your long entry point is 650 minus the premium collected.

If you fear missing the upside, buy an out of the money call with the premium
Collected from the put.


(0,-1)+p + (+1,0)-c = (1,-1)+p-c

This is what I have been doing for 2 years. Almost always works very well. The only time it doesn't is if the SP drops a lot and fast. Then you have to decide whether to just buy the shares above the current SP or roll the sold puts out and down.

 

[printf42]

I've been paying like 9% margin interest on TSLA for almost 2 years now. I hate paying it but for me it was well worth it since TSLA stock price gained much more. I'm still on margin because I think I'll get higher return than the margin interest I pay. I'm not on full margin anymore like I was last year but that's because the value of TSLA has gone up so much. So my account margin percentages have decreased even though the overall margin debt I owe have actually increased due to me buying even more TSLA shares.

If you use margins to buy shares, consider converting to hold deep ITM LEAP calls without margin. It could actually be cheaper than your margin rate, and it protects you from catastrophic events which could end with margin calls.
Downside is you need to pay tax when you roll forward, if it’s not in a Tax free account.

If you use margin to buy LEAPs, never mind, your risk tolerance is obviously higher than mine.

 

[Krugerrand]

Curios how many share and at what price would you need TSLA to be at to retire?

I know every situation is different but for me I think a share price around 1,387.42 would work.
I have enough shares that at that price I could sell them all..(never would)... and pay the tax man and still have enough to invade certain island's and such.

Clearly I’ll be holding mine beyond that so as to be able to fund my defense of your invasion and have money left over to import Charmin for my yacht fleet.

 

[Tslynk67]

As I got a couple of PM's asking me about the heath of @Intl Professor I would like to clarify that my "RIP The Professor" message is referring to Neil Peart - "The Professor on the drum kit". Have now adapted to avoid further confusion...

 

[Tslynk67]

This is what I have been doing for 2 years. Almost always works very well. The only time it doesn't is if the SP drops a lot and fast. Then you have to decide whether to just buy the shares above the current SP or roll the sold puts out and down.

I only sell cash-covered puts and share-covered calls. So I've started selling deep-dish out-of-the money calls on my core shares. For instance Feb 28th $1250's last week pocketed me $1500. That's money for nothing IMO. There's no way the stock would organically rise to that level in such a short time, it would be a squeeze event or something irrational and in the case the price would likely fall afterwards too allowing a re-buy.

Question is what happens if you sell deep ITM puts and the stock does take a dive, how would you cover buying the shares?

 

[KarenRei]

For those of you that hold TSLA common, please ignore this post.

For those of you that hold TSLA options, my 20-year experience with options is that, eventually, something bad happens unexpectedly and you lose 80% of the value of your position very quickly. Unlike holding common, it is very hard to recover from that. Once you've had a drop like that, you are going to be reticent to speculate with your remaining funds in a manner that would enable you to recover quickly.

So, protect yourself. Take some money off the table, or hedge, or put some of your winnings in lower leveraged positions.

Advice, from someone who has made a lot, and lost a lot.

So, you're saying in short, deleverage on the way up, releverage on the way down?

Hmm, where have I heard that advice before...

(I'd add to that: stay with long-term options unless you want the occasional lotto ticket, and don't underestimate how far down "the way down" can go in terms of setting up a "releverage on the way down" strategy)

 

[Curt Renz]

 

[Nordicherring]

Hello to every single one most lovable character on this magnificient forum. As there seems to be a minor flood of freshmen on this thread of TMC forum recently,I finally decided to sign up myself too. I'm a long since 2014 and plan to stay that way. Never have I traded options, but only bought stocks whenever able to. As it is human, greed sneaks in when stakes get bigger. I'd recommend newcomers (as we'll as active members and beyond) take vaurion when bragging about Bug gains. It might be just euphoria, when not used to such big gains. If one needs to brag, I presume the core members of this forum thread who might have helped you get rich, would propably like to see your gains put to better use than new toys further destroying the only planet we have. I'd live to see some start-ups

 

[pz1975]

I only sell cash-covered puts and share-covered calls. So I've started selling deep-dish out-of-the money calls on my core shares. For instance Feb 28th $1250's last week pocketed me $1500. That's money for nothing IMO. There's no way the stock would organically rise to that level in such a short time, it would be a squeeze event or something irrational and in the case the price would likely fall afterwards too allowing a re-buy.

Question is what happens if you sell deep ITM puts and the stock does take a dive, how would you cover buying the shares?

I am also selling way OTM calls expiring in 1 day to 2 weeks. This has worked very well the last couple weeks - basically free money and if the SP did rise to those levels, my core shares/LEAPs would be worth so much more I wouldn't mind taking a loss or selling some of the core to compensate for it. Note I did not do this during the crazy spike from 400 to 950. I was buying way OTM calls all along and did very well (as I have described before).

As for the puts (your question), I am holding a relatively large cash position right now (from cashing out those OTM calls 2 weeks ago) with the expectation of adding to my core shares if the SP drops. The OTM puts I am selling are 1-4 weeks out and at levels I would love to buy the shares at. So if the SP drops and those puts end up ITM, I'll happily buy the shares at a discount compared to what they cost now.

 

[Nordicherring]

*autocorrect: vaurion=vaurion; Bug=big live=like/live ... Start-ups that try to make a difference. At least give some to the community aruond you. Taxes are a common compalint on this forum. I'd like to remind you that via taxes you actually get more benefit to more people around you. Some really smart, world changing minds may be able to get a chance to study a decree and so on because of your taxes. Have a nice Weekend.

Cheers!
(as A.D. puts it )

 

[Curt Renz]

Hello to every single one most lovable character on this magnificient forum. As there seems to be a minor flood of freshmen on this thread of TMC forum recently,I finally decided to sign up myself too. I'm a long since 2014 and plan to stay that way. Never have I traded options, but only bought stocks whenever able to. As it is human, greed sneaks in when stakes get bigger. I'd recommend newcomers (as we'll as active members and beyond) take vaurion when bragging about Bug gains. It might be just euphoria, when not used to such big gains. If one needs to brag, I presume the core members of this forum thread who might have helped you get rich, would propably like to see your gains put to better use than new toys further destroying the only planet we have. I'd live to see some start-ups

Welcome to TMC. May you continue to prosper.

 

[Rammstein]

I concur. PUT hedging is the solution. She'll sleep well at night. You'll get to stay in the stock. Everybody wins. Whenever she complains again, or your PUT hedges are running out, roll them. After discussing with her and making sure that both parties are happy with the decision.

If you're married or otherwise in a long-term relationship, make sure that both parties are onboard with major financial decisions. Investments aren't worth adding discord to a relationship.

What strick price and what date are you picking?

 

[AZRI11]

Bloomberg - Are you a robot? - EVs (Electric Vehicles) on the Brink of Change

Lots of bad information in this program. You would think legacy is on equal footing to Tesla. Not suprising coming from wallstreet. It shows how far ahead retail investors are compared to institutional investors.

 

[SoGA Fan Club]

More precise title: "Giving Elon Musk hell for 40 mins straight, ending with a 5 min mix of giving Tesla some sorta (but not really) compliments and giving Elon Musk hell. :-D

I agree. No one on this board will gain any insight into, or learn a thing about Tesla from this documentary. At about the 1 minute mark or so, I said to myself, "oh boy, here we go with the BS" - but decided for SOME stupid reason to keep watching. Man, I'll never get those wasted minutes back.

 

[Curt Renz]

Popular Mechanics - yesterday: Corny Lithium-Ion Batteries Could Hold Quadruple the Charge

 

[charlesgres]

This is what I have been doing for 2 years. Almost always works very well. The only time it doesn't is if the SP drops a lot and fast. Then you have to decide whether to just buy the shares above the current SP or roll the sold puts out and down.

Do you need margin for selling the puts?
How do you get out of a sold-put position? Does a buy of the exact same option cancel the previous sell?

 

[UnknownSoldier]

Hello to every single one most lovable character on this magnificient forum. As there seems to be a minor flood of freshmen on this thread of TMC forum recently,I finally decided to sign up myself too. I'm a long since 2014 and plan to stay that way. Never have I traded options, but only bought stocks whenever able to. As it is human, greed sneaks in when stakes get bigger. I'd recommend newcomers (as we'll as active members and beyond) take vaurion when bragging about Bug gains. It might be just euphoria, when not used to such big gains. If one needs to brag, I presume the core members of this forum thread who might have helped you get rich, would propably like to see your gains put to better use than new toys further destroying the only planet we have. I'd live to see some start-ups

You'll get numb to seeing the big numbers going up and down on a daily basis. Soon you'll need to YOLO massively OTM weeklies just to get that "high" again from seeing huge green and red numbers. You'll start lurking WSB and buying dumb weeklies in whatever random ticker symbol they talk about just to feel something again. Eventually you'll need to call the National Problem Gambling Helpline, for your convenience I'll provide the number here for you. Save it for future use. 1-800-522-4700

Spoiler

This happens to everyone who trades options for the first time. It's okay, you'll get used to it. After some painful losses you'll either start doubling down like a degenerate gambler or you'll start learning to manage your risk exposure. It will be fun either way.

 

[lascavarian]

SpaceX is looking to raise about $250 million, valuing Elon Musk's space company at $36 billion

Fundraising at SpaceX.

Mildly tangential to this post is the recent comments on a YouTube channel called "What about it"

At about 9:25 minutes in, he makes a startling statement about Starship. Musk is targeting a build cost of $5 million each and a production rate of 2 per week. This is staggering disruption! $5 million for a Starship. Imagine building 100 Starships for only half a billion dollars. I expect these will be commercialized to the public at some point. Most big visionary corps will want to have a few.

Starship

I have been waiting a week or so for someone to correct this pricing but have heard nothing. This is kind of a big deal. To be able to produce a Starship for this cost (or even 2-3x) will introduce orbital commercialization on a gold rush scale as I imagine it. This may be our modern Conestoga Wagon (a reference to the type of wagon used by pioneers settling west of the Mississippi).

I think an island is interesting but having a 50 meter tall Starship is the true indication of having arrived

 

[ktrivedi70]

I agree. No one on this board will gain any insight into, or learn a thing about Tesla from this documentary. At about the 1 minute mark or so, I said to myself, "oh boy, here we go with the BS" - but decided for SOME stupid reason to keep watching. Man, I'll never get those wasted minutes back.

Bless you guys for taking one for the team.