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

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By selling puts, no. I've got enough shares that I get all the upside exposure I want/need. If the shares go down, then I end up buying more shares due to the puts being assigned, at which point I DO plan to sell high delta (close ITM) calls to turn the acquired shares back into cash. The core shares though, I'm not selling calls against them.

Think of my approach as primarily a dividend approach, within a larger portfolio where I've got enough shares, but a source of cash will make it easier to pay bills in the meantime if/when I retire. Learn more in the Apply option strategy ... thread.
Ok will do. Thanks!
 
When it starts moving do you go all in?

A significant move in either direction, especially sustained and significant moves, are where this wheel strategy performs least well, while a sideways trading pattern is where it performs the best. I've decided to 'get out of the way' to the upside by not selling calls (covered calls).

I've also realized that I'm earning plenty from selling puts, again with the downside that I buy additional shares at a discount (which I'm entirely willing to do).

I'm pretty strongly in the camp where the point of view is that there IS such a thing as enough, and I have little desire to try to pile up the gains as high as I can push them.


And no, I don't go all in on a move up. Alternatively you can view my portfolio as all-in, as I'm about 15% real estate (investment trust), and 50/50 on the rest as Tesla plus cash. I'm pretty comfortable today with the idea that my only meaningful investment is TSLA, which seems like a reasonable working definition of all-in (and therefore, a state I've been in for nearly a year, and don't plan to change any time soon).
 
This site fully tracks daily volume historically, but will only provide me 30-day average volume going back 5 years unless I sign up. Anyway, it shows a 30-day average daily volume of only 2.728 million back on Dec 29th, 2015:

Tesla 30-Day Average Daily Volume | TSLA

View attachment 572779

Out of interest, I just grabbed the 5 yr vol chart and overlaid the SP for the same period ..

SP v Volume.jpg



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i heard 250 as well but it was more likely 500 or more in the end..or it just filled so quickly that many of those willing to do the 250 didn’t make the cut

Yes, i know someone who got filled with $3mm but that was one of the smaller ones...SpaceX is their highest demand offering when it comes up so it fills quick and has higher minimums typically
 
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Are you worried about missing the upside if the stock takes off on you?

I'll answer this, if I may... No, not at all, because I have a core share account, which is up a whopping 10x on my original investment in 2016 and roughly 8x based on my average buying price - I never sell the shares, I add to them when I can.

However, I have a "play" account, which is a separate legal entity - as it's registered to my company - and this is up, 120x since last September, by trading - options, day-trading, LEAPS. Has been huge fun and a total game-changer for me.

So you can play both and win big, very big indeed.

Of course it helps having a stonk that generally just goes up, quickly, but I also made a hell of a lot when it was trading sideways, like now. It's perfect for selling weeklies.