That must be new because I've taken out loans against IRA accounts in the past from Fidelity.Hot hamit! Fidelity says IRS won't allow loans against IRA accounts! Guess I'll just have to sit tight and wait for the climb.
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That must be new because I've taken out loans against IRA accounts in the past from Fidelity.Hot hamit! Fidelity says IRS won't allow loans against IRA accounts! Guess I'll just have to sit tight and wait for the climb.
Not an advice..
But if you bought NIO at $6.8 like ten days ago, you would have doubled your money. Better than Tesla during the same period. I kicked myself for not buying more with my MSFT money.
If your anticipation to TSLA is only 2500-3500 , you probably can find a better stock, if above $5000, then now is the time to buy back.
I was thinking about this post when the SP went crazy today. I hope you pulled the trigger today.
Interesting. I used the interactive question/answer thingy and it said no dice. Should I just go straight to a person then?That must be new because I've taken out loans against IRA accounts in the past from Fidelity.
Why then does the bank lend it to you instead of buying stock themselves, one wonders.So true. I even went further many times. Instead of paying off mortgage, I extend it to as many years as I can, and make only the minimum payment. The extra $ I have monthly is then invested. The returns are much, much, much more than the mortgage interest.
That is the very first lesson I learned in investing - USE OTHER PEOPLE'S MONEY. Mortgage interest is so low, it's practically free.
I always used the Q&A thingy. But the rules may have changed since I last took out a loan.Interesting. I used the interactive question/answer thingy and it said no dice. Should I just go straight to a person then?
I'm sure I'm not the only one, but I will be selling my trading shares/options when it looks like we are close to the top and possibly some core shares after that to bet on a slow decline back to a reasonable price. (assuming we hit some weird/unreasonable prices)
Agreed. It's only logical that Thursday $550k option buyer is the same whale did the buying Friday. IMO, $550k option bought Thursday is not the gamble or collusion for one time quick profit as most of the people suspected. It's part of the share purchase plan executed Friday. If the raise from $1000 to $1400 is caused by someone accumulating shares quietly, Friday's action showed someone got impatient or feeling the time is running out. It will be exciting and roller coast time for next few weeks. I think what happened so far is just a prelude.No they could not. And that was not their intent.
The Buying Entity had already made the decision before thursday to buy the shares on Friday for two reasons. The first was the fear of what they knew would get to other powerful buying groups before they could get all the stock they wanted/needed. And the second was to get the maximum assistance of the MM's to depress the SP while they bought in hyper mode. On Friday the MM's coordinate their effort to keep the SP at Max Pain, or as close as they can. And Friday is the only day that really matters so MM's are vigilant and focused Friday afternoon.
The Buyer figured out how much the SP would move if they purchased the number of stocks they needed on that Friday. They could have figured it out at anytime before the purchase on Thursday. But by NOT buying the calls till Thursday they gave the rest of us the least amount of time to consider what was going to happen. (I remember a few months back something similar happened. An even greater amount of money bought calls and it made even more money for the purchaser..anyone remember the exact event?)
The primary goal was to purchase a large quantity of shares before what they knew would be known by anyone else so they could just have to deal with the increase in price they were creating. They used the MM's desire to manipulate the price lower while they started buying. They knew the MM's couldn't keep the price down against the sheer volume they were going to buy so they knew the price was going to be at least $1500 by the end of the day. And they did the intelligent thing with that information, and they bought calls at $1500. The calls were just a side dish. Sure they made a helluva lot of money on them. But their move was to buy millions of shares before anyone else moved the price based on what they knew. And by doing so they will make many times more money than they made on the $1500 calls in the near future.
EDIT: The move could have even been done by a front runner who will re-sell the stock once inclusion to the S&P 500 is announced.
But like I have posted. This is too bold a move to be done without concrete proof .
Risky is an understatement for a big bet on $2500 next week.Any comments on what seems to be a multi-million dollar wager on TSLA reaching $2,500 next week? Like yesterday's large bet on $1,500, seems like somebody knows something.
Is this as risky as it seems?
https://twitter.com/ValueAnalyst1/status/1281886141109751809?s=19
Hot hamit! Fidelity says IRS won't allow loans against IRA accounts! Guess I'll just have to sit tight and wait for the climb.
If post-addition TSLA outperforms the rest of the S&P 500 by 10% (let's say for simplicity TSLA is up 10% and everyone else is flat), so at the next rebalancing an index fund requires 10% more dollars in TSLA, don't they buy nothing because their existing TSLA shares appreciated 10% already? What could happen to actually require them to buy more shares?
(I guess I'm thinking, if companies on the index issue more shares, that might change the mathematics? But not if the share count stays the same and it's only the share price that adjusts?)
We hates bridges. When you're an Islander you will too. Ferries to the mainland, then the Pan American Tunnel.
Thank you. This makes me feel a tiny bit less crazy because it's exactly how I feel and I'm glad I'm not the only one.
Side note: getting another Tesla, thanks to TSLA. By 2022 we should be on our fourth. Hope the ones we sell go to good homes and last forever.
I was thinking about this Friday when someone mentioned the $1500 call bet.Risky is an understatement for a big bet on $2500 next week.
But regardless, it may help move the SP next week. Any call expiring next week is like a magnet: the closer the SP gets to it, the more the MMs who have sold those puppies are going to have to cover to protect themselves from their potential exposure.
It’s crazy big weekly option bets like this that help cause the big movements and the SP pins on Fridays. It may look like manipulation of the SP, but somebody has to sell the calls that investors want to buy, and some of those sellers don’t have a favorite horse in the race, they just don’t want to get slaughtered.
Looks like a half Abyssinian half Bengal. Didn’t know they could surf.Oh, we’re crazy. Bat poo crazy because we’ve waxed up our surfboards and are riding this tsunami all the way inland.
Warming up:
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In general, I wouldn't recommend that, and especially not in a taxable account.
The only exception for me would be if it becomes apparent that the share price has exceeded a sustainable price by such a large margin that it makes sense to sell. But I would caution on under-estimating what a sustainable price actually is. The sustainability of the share price will depend upon Tesla's execution going forward but the consequences of getting stopped out of the stock of a company executing perfectly is my worst investment nightmare. Because a company executing perfectly is the dream stock everyone wants to be in.
So when I set what price I think is sustainable I try to err on the side of a company running perfectly on all cylinders. Yes, we are all familiar with a well running ICE and that is very descriptive of the way a well running company functions even if they happen to make EV's. Because there are quarterly pulses but the overall execution should be smooth and powerful. Currently, I like @FrankSG estimation of "Barring bad macros, I think there's a decent chance TSLA will be permanently revalued to $2,000+, with a small chance of some crazy permanent revaluation to $3,000+" Granted, this backs out the likely short-term dips lower but those do not interest us. Because I agree with with this, I really don't want to be selling below $2500 and I would only do so at that price reluctantly and only under certain conditions.
I don't want to play any short-term dips because that requires two successful trades to make work. The easy one is the sell but even that is fraught with the risk that it will inexplicably keep soaring. Assuming you sell near the top and are still interested in profiting from Tesla's further growth and execution, then you also need to time a re-entry buy. And that is fraught with even more danger.
The bottom line is I don't recommend trading a stock with this much growth potential and proven ability to execute. You are generally better off to mimic the owner of a brokerage account who has died. In other words, do nothing!
Looks like a half Abyssinian half Bengal. Didn’t know they could surf.
Misery loves company. I’ve been watching the stock price in terror for the last few months. I’m going through a divorce and have to split all of the increases with my wife. It’s really ruined the whole owning of the stock for me. It’s not so much the thought of having to share it as it is I’ll be left holding the bag if the TSLA bubble bursts after the settlement.Confession time...
It's either write this post or perch myself on the window ledge. (Ground floor. Not much good there.) This is the only audience to whom I can bare my tortured soul.
Some years ago, I bought a bunch of TSLA at $200. (I'm not savvy enough to trade options. I'm more comfortable buying and holding long-term when I believe in the strength and vision of a company.)
Through it all I held fast and didn't sell. When TSLA went down to $150 and cries of 'bankrupt' were coming from every talking head on Wall Street, I just smiled and sat tight. I watched the reversal and held on, all smiles, until the pandemic hit. Until it was apparent that the pandemic was going to have a significant impact on the world and the Tesla factory closed.
At that point, I made the dumbest financial mistake of my life to date: I sold all my TSLA at around $750. Not because of any reduction in faith. I was trying to be clever. "There's going to be a dip back to $500-ish range due to the results of the plant closing and the general economic impact," my idiotic brain told myself. "I'll buy back in at that point and have even more shares."
And the downturn never happened.
My wife steadfastly shared my long-term faith in Tesla (which is still unwavering) but she, too, believed that the world's most volatile stock would dip and give us a chance to get back in. So we waited for a dip. And opportunity after opportunity passed us by as we waited for a dip that never happened.
So here we sit. Still sitting on cash that while missing every opportunity to reinvest in TSLA.
I'm absolutely tortured at the horrible decision I made by trying to be clever. My wife is far more zen about it. We locked in profit and she does a better job of focusing on that.
And, though it all, I can't stop beating myself up for exiting at $750. I'm so anguished over this that I can't let it go. I told my wife "I want to punch myself in the face until I'm unconscious, wake up, and do it again."
This is the only place who would possibly understand my pain. All of my friends and family would hear this and say "Oh, you didn't make enough on your TSLA stock and you're sad now. Boo hoo. Piss off."
So now we're faced with a decision: I want to just get back in now at market price and forget about the mistakes of the past and she wants to wait for a dip that may never happen before getting back in.
My belief is that long-term we're looking at $2500 - $3500 in the next three to five years and just jumping back in now is the best thing to do. Trying to be clever is what got us into this mess in the first place and I don't want to make that mistake again. My wife still believes that the world's most volatile stock won't disappoint and we'll see a dip again. Certainly not down to where we exited, but possibly nearer to $1000 or a tad lower.
That's my pain and our current struggle.
Thanks for listening.