TheTalkingMule
Distributed Energy Enthusiast
I have to think they'll likely suspend any trimming until nearer inclusion. Must be too tempting to pass up.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
China new Trio NIO, XPEV, LI market cap163.88 bln. Detroit big 3 GM, F, FCAU market cap 130.18. TSLA market cap 494.66bln.
Karenrei explains the market cap thing pretty well here.
https://twitter.com/enn_nafnlaus/status/1330919819231830017?s=19
I wonder if the pace of the TSLA move-up has anything to do with buyers not wanting to get ahead of the upper bollinger band too much. I don't really trade on TA or anything, but I've noticed from @Papafox posts this year, that pretty much every run up did not get too far ahead of the upper bollinger band, and often only stayed above it for a day or two at a time.
I'd be curious to hear @Papafox's thoughts on this in his daily post later.
Either way, new ATHs and barely any volume (and therefore no large selling) is pretty bullish imo. Sellers will show up, but not many did today at $500 - $530.
I'd be curious to hear @Papafox's thoughts on this in his daily post later.
Either way, new ATHs and barely any volume (and therefore no large selling) is pretty bullish imo. Sellers will show up, but not many did today at $500 - $530.
You may be unaware, that is a wash sale so will not be able to claim the loss on your taxes.
IRS Wash Sale Rule | Guide for Active Traders
I wonder if it is like the old saying "Nobody got fired for buying IBM." but now it is "Nobody got fired for buying while the stock price was inside the Bollinger band ."
Mike Smith
Active Member
Elon on Twitter: "FSD Beta 5 coming out in a few days. Improvement should be significant."
https://twitter.com/elonmusk/status/1331062680921235456
https://twitter.com/elonmusk/status/1331062680921235456
Except for they might get fired for only buying inside Bollinger, because buying outside Bollinger will turn out to have been cheaper than only buying inside Bollinger after it had gone up a ton
RobStark
Well-Known Member
Are you still hanging onto the belief that national governments will allow all OEMs to fail?
gabeincal
Active Member
Thanks for the heads up! @woodisgood brought this also to my attention, but interestingly enough etrade did NOT flag this as a wash sale.
So question #1: is it? And if so, why? Different expiry dates and different strike price should differentiate..?
Question #2: what if I treat is as a non-wash sale according to my opinion?
Options are tricky. I don't think there is a consensus. Different price and expiry dates are different enough that they should not be a wash sale IMHO. I don't understand why it matters. You pay now or you pay later....
Depends on the government. China certainly won't let NIO, Xpeng, Li Auto, etc. fail. The UK on the other hand won't have the money to prop up the likes of Jaguar Land Rover. Germany is the wild card here, how much are they willing to spend to save Volkswagen, BMW, Daimler, etc.?
Krugerrand
Meow
Causalien
Prime 8 ball Oracle
This is what I call fleshing out your architecture for the next level.
It's small little steps that greases your money flow and makes certain execution now possible. Like borrowing on 2% and making 5% on a cash flow instrument.
IB also opens you up to most of the instruments you can buy in the world. It's confusing at first but worth studying. God, I sound like an IBKR salesman. Maybe I should stick their affiliate tag on my name.
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mejojo
Active Member
It is a wash sale. Your broker should do all the calculations for you. I know Schwab does.
IRS Wash Sale Rule | Guide for Active Traders
"What this means for the stock and options trader is that if you take a loss on a stock or an option and then buy back that same stock, or an option on that same stock, whether the option is the same month and strike price or not, you have a wash sale. The same holds true if you close an option position for a loss and then buy the same underlying stock within the 30 day window."
Ameliorate
Member
Can't say in the US but in Canada I learned earlier this year that high activity trading accounts which seem to be managed by a professional or used as sole income are not treated on a capital gains basis (27% tax) but on business income (53.4% tax.) aka personal tax. The ruling is so vague its up to the discretion of the CRA. If you get serious into trading, find the best accountant you can, seriously.
Now where it gets interesting is, when trading on account of business income - wash sales do not exist. You can harvest losses at any point in the year. Trading on account of capital, yes you can not sell and repurchase any similar instrument within 30 days without triggering the wash sale rule.
This miraculously worked out for me as I sold all my calls and re-bought more aggressive strikes near the bottom of the Feb dip not really understanding any of this at this point in time. So I lowered my cost basis by about 65% (ouch) but I will pay 53.4% tax on that personally.
Now the assets have been moved into a corporation, and the current 90% unrealized gains are being carefully handled to demonstrate a long term accumulation strategy which falls within the "on capital" narrative which will warrant a 27% tax rate and a bunch of other benefits like capital dividends etc - allowing some tax free withdrawal from the corporation.
It's complicated out there!
PS yes I believe TSLA calls to any other TSLA calls/strikes/dates would still be considered a similar instrument.
Mo City
Active Member
Germany isn't really a wild card. Not even debatable IMO. The government will ensure their big 3 survive in some way, shape or form.
Looking forward to watching todays price action as the panic continues to set in from institutions and short sellers...
2virgule5
Member
VW may be able to save itself, Daimler is getting closer to being absorbed by Geely. BMW may be the sacrificed lamb... (the brand will likely survive for a time...).
woodisgood
Optimustic Pessimist
When making the argument you just did, it’s worth considering what the IRS is trying to prevent with the rule: namely, taking a loss for tax benefit while essentially rolling into the same/similar investment at the same time (+/- 30 days) as taking the loss.
And if you’re wondering whether it’s a “similar” investment, consider what happens to your investment if TSLA goes up. Whether it’s shares, or call options, you’ll profit. Which is why many would consider those to be substantially similar. Now, is a LEAP the same as a weekly call? Is a DITM strike different from a way OTM? That’s where it gets gray and you could make compelling arguments there’s a difference. That being said, I haven’t seen consensus on the issue, and why I personally use the “directionality” concept to examine the tax consequences of my trades. It might be overly conservative but it makes sense to me. YMMV
While I agree, there is a limit to what governments can do.
They can't force customers, particularly overseas customers, to buy inferior cars at inflated prices.
They can protect the local industry via tariffs and subsidies, but often the end result is the local industry becomes dependent, and a barrier to free trade.
Other industries in which they may be competitive, may be hit with reciprocal tariffs.
However, the German car industry is too important to Germany.. whether or not that has to be solely German brands, or can be a mix of brands is yet to be determined, but jobs are more important the brands.
Diess is trying hard at VW, but from watching Alex's video, he has a lot of internal opposition to overcome.
if companies can't compete on price, quality, innovation and market share, government can help them financially, but can't solve these problems. There is a difference between surviving and thriving... governments can help them survive, but they can't help them thrive.
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