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

[lafrisbee]

600 seems so far away...and yet... wait?

 

[PV4EV]

... more like this I think !!

 

[Dwdnjck]

What is the opposite of “catching a falling knife?”

 

[mikevbf]

What is the opposite of “catching a falling knife?”

Losing your shorts

 

[lafrisbee]

Losing your shorts

much funnier when I thought about it.... I get it.

 

[H Mak]

$500 would be a "triggering event" in our house. = a bottle of champagne is opened, regardless of the time of day

CHEERS!

 

[BornToFly]

Am I the only one turning into a basket case here? I almost need to start breathing into a brown paper bag. I've been waiting for this moment for a long time, and I know it is going to continue to go up. I want to sell covered calls with 1,000SP for Jan 2022, and 1/30th of my core position near the peak. The problem is the peak is a month away and staring at the ticker is wearing me out! I am more stressed out now than when we were slowing bleeding back down to 400 before the announcement. I need some freaking Valium!!!!

 

[mikevbf]

Yes, the ATH SP was $538.75 during pre-Market trading on Tue, Sep 1st, 2020 at about 7:01 am:

View attachment 609596
The ATH Closing SP occured on the previous day Aug 31, 2020 at $498.32 and that record is in play today:

View attachment 609597

Cheers!

Found it. 538.75 pre market.

 

[Christine69420]

BAM 500

EDIT: Big Time. How in the hell did you beat me? I was sitting here with "Bam 500" already written. All I had to do was hit the Post Button.

You need a proper broadband line. Perhaps sell a share and sign up for a Starlink connection.

 

[ReddyLeaf]

I hope you realize that you've taken a bearish position when you sell a covered call? If you're bullish on the next few weeks, instead of selling the covered call (for the profit of only $100), you could've sold 1 share and then bought that same call (or 4). You'd get all the upside of holding 99% of the shares plus whatever value the calls gain in the next few weeks.

Those of you dabbling in options for the first time, please be careful that you don't end up on the wrong side of the trade! Not all call trades are bullish, and not all put trades are bearish!

Thanks, yes I’m aware of it. I’ve bought some Jan 23 500c LEAPS that are definitely doing quite well now. I’m still trying to find some more cash lying around to buy more. Unfortunately (well actually luckily), I’ve managed to buy way more shares outright than I was initially comfortable. My ROTH is essentially 100% and my regular IRA is pretty close. Obviously no margin on those accounts, but I wouldn’t use it anyway. Selling shares to buy more calls is definitely something that I’m considering.

Edit: Thanks to everyone for these discussions. I wouldn’t be in TSLA and especially options or LEAPS without this open back and forth discussion.

 

[TheTalkingMule]

If you want a wacky indicator of where IV has moved in 24hrs, the bid/ask on $90 2022 puts has gone from something like $1.25/$2.10 yesterday to $1.95/$2.66 right now. All while SP is actually UP 5%.

 

[elasalle]

600 seems so far away...and yet... wait?

YUP. Closed all (11) 600 Jan 21s CC's and negated with 2 Jun 360 Sells. Now waiting for $540-584 to sell more CC's, hope IV keeps rising.

 

[lafrisbee]

You need a proper broadband line. Perhaps sell a share and sign up for a Starlink connection.

Oh, I am getting Starlink no matter the price. I'd want it because of Elon. But ATT and Brighthouse have been screwing with this part of the world for a long time by reducing bandwidth and price manipulation.
So bring it.
Beta me!

 

[wipster]

I'm on it!

Well done mate!

 

[Mengy]

Am I the only one turning into a basket case here? I almost need to start breathing into a brown paper bag.

Seems like a lot of posters here are in a tizzy too, so I don't think you are the only one.

For myself, I bought all of my shares between 2019 and early 2020 and I haven't sold a single one yet. Not planning to for many years either, and even then only from one of my accounts as my TSLA in both IRA's will probably be held until I'm 60.

So while I love seeing the stock do so well, I'm honestly not too interested in these day to day stock movements. I'm more interested in where it will be 3-5 years from now, so days like these are very relaxing to me!

 

[Tslynk67]

Well done mate!

Thanks! I'll let you take it from here - might go up, I reckon...

 

[StealthP3D]

Although other evidence for the naked short theory is weak imo, the sale of most of these shares likely happened between the split announcement and the split. Given this very specific timing, I wonder if perhaps, instead of a large entity acquiring a new long position, the shares were bought by naked shorts to cover positions.

I like that theory a lot except it does leave one mystery unsolved. Namely, what stock did Berkshire buy that had such unique circumstances the SEC let them not disclose it?

Personally, the reason provided, "that it might cause it to go up too much", isn't very strong because we have free markets and the long-held assumption is that prices will take care of themselves. If Warren Buffet buys a stock it might go up. So what. It can only go up as high as the market is willing to value it based upon what the market knows. And periodic disclosure is the norm. Going up "too much" is not something that regulators concern themselves with as long as it's not based on false or misleading info.

So the theory that it was done to allow Index inclusion at more favorable prices makes a ton more sense. Especially with the threats to the economic system poised by CV-19 and the fact that a better entry price for index funds increases the performance of a major market index and instills confidence. In fact, the very inclusion of a company as large and disruptive as Tesla could destabilize markets under the right conditions, specifically if it created a huge squeeze as index funds were trying to add it.

But I disagree that the evidence for huge naked short positions was weak. The evidence was well presented here, studied and cross-checked and stood up to scrutiny without falling down. And if Berkshire was buying during that same period that naked shorts were being covered, I would have expected a much more dramatic squeeze. The other problem is that Berkshire has ZERO history of buying stocks that are in high demand. They are generally accumulating quietly when others are not interested. It makes no sense they would have been competing to buy large amounts of TSLA as the price was appreciating rapidly. It makes a lot more sense that they were buying after the "mania" had subsided and prices were more than 20% off the peak.

In summary, I can't imagine another company that makes as much sense as TSLA as to why Berkshire was granted a disclosure exemption (due to S&P inclusion) and yet this doesn't fit well with Berkshires normal mode of operation or the likely large naked short positions at the time of the split announcement. So, the situation is normal, we don't have enough information to be sure one way or the other! It will be interesting to see what the undisclosed stock is and why Berkshire was granted an exception.

 

[Dan Detweiler]

Am I the only one turning into a basket case here? I almost need to start breathing into a brown paper bag. I've been waiting for this moment for a long time, and I know it is going to continue to go up. I want to sell covered calls with 1,000SP for Jan 2022, and 1/30th of my core position near the peak. The problem is the peak is a month away and staring at the ticker is wearing me out! I am more stressed out now than when we were slowing bleeding back down to 400 before the announcement. I need some freaking Valium!!!!

Better settle in for the ride. It won't be a one way trip. Gotta learn to buy the dips (if you can) and ride the waves. Eyes on the prize and stay the course!

Dan

 

[Rockster]

It's customary at my company for those departing to send a company wide goodbye email on their last day. I've already written mine for the eventual day that I depart for my retirement. I don't know if I'll be retiring in a few months, or even a year or two, but my goodbye email is ready to go.

Most of the goodbye emails are five or six sentences long. Mine; however, is a tad longer than most and I doubt that anyone reading it will realize why. The reason for its length? Because combining the first letter of each sentence spells out "TESLA STOCK."

 

[ReddyLeaf]

If I'm reading the options price quote correctly, I believe you are both off. The quote for a 12/24 c600 is not 100 and not 1 either, but closer to $10 (actually $14+). Which means the OP would receive a premium of about $1,400, not $10,000, but also not just $100. So if the shares got called away, the OP would receive a net of ~$61,400.

Thanks. I put in a limit sell order at $100. Since the bid/ask is, like you said, somewhere near $14, it won’t actually happen unless the SP rises nearer to ITM.