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

[Off Shore]

For a good laugh, watch this live commentary video by Meet Kevin—a pretty well-known investment-advice YouTuber with a large following. He clearly has no clue whatsoever what’s going on as he is watching the last 5 minutes of regular trading! (funniest part starting at 7:15 into the video)

Access to his feed was worth the price of admission but he doesn't seem to know about the S&P inclusion.

 

[UncaNed]

Yes, same here on ETrade. @MP3Mike had the same explanation:

Edit: This is in response to @UncaNed

Thanks for clearing this scary-looking issue up... There must be other responses to my post I've overlooked, thanks to all, even if only for commiserating... So nothing to worry about, it will all get cleared up in the morning.

Right??

 

[euro2012]

My account is showing the same. At close some of my LEAPS were showing 90% drop. That seems to be corrected now, but still showing a big drop in the options. Seems to be IV crush, since volatility has dropped too.

Forgive my ignorance, but how can volatility drop given how much the price swung around today? My options still show a big drop right at the end as well, still not corrected on qtrade (Canada).

 

[MikeC]

Forgive my ignorance, but how can volatility drop given how much the price swung around today? My options still show a big drop right at the end as well, still not corrected on qtrade (Canada).

Because the event is over, the market is forward looking.

 

[Cherry Wine]

Thanks for clearing this scary-looking issue up... There must be other responses to my post I've overlooked, thanks to all, even if only for commiserating... So nothing to worry about, it will all get cleared up in the morning.

Right??

You're good. Just a glitch that will get fixed. Otherwise, scoop up some cheap options - I see 6/18/21 $300s for a dollar per contract! I'll take...hmmm...100,000?

 

[asburgers]

Forgive my ignorance, but how can volatility drop given how much the price swung around today? My options still show a big drop right at the end as well, still not corrected on qtrade (Canada).

He's referring to Implied Volatility, which is a plug figure that can be based on the Black-Scholes formula. Think of it as the premium in the options market for that particular set of contracts. The higher the implied volatility, the greater the premium.

 

[UkNorthampton]

To celebrate the entry into the S&P 500 our Norwegian friends decided to register 241 Teslas today. A record for this year.

Nice...

 

[ZeApelido]

Could someone explain what just happened like I'm 5?

Tommy didn't want to be friends with Jimmy and wasn't being nice to him.

As punishment, Tommy's parents told him he had to trade toys with Jimmy, and it was Jimmy's choice.

Jimmy's siblings were confident they could score Tommy's Playstation for some scraps.

Instead Jimmy traded their Legos for Timmy's stupid Barney dolls.

It was at that moment they realized Jimmy was actually a stupid &!?%* robot that didn't understand economic game theory.

 

[Unpilot]

I forget, did we converge on a definition? $1M worth of TSLA shares? $1M gain? $1M portfolio including non-TSLA? Asking for a friend.

I think it is 1 million over initial investment in TSLA.

 

[Prunesquallor]

I forget, did we converge on a definition? $1M worth of TSLA shares? $1M gain? $1M portfolio including non-TSLA? Asking for a friend.

After consideration, none of these are “stable” options

1) someone could be a multi-millionaire and buy $1M worth of TSLA shares and qualify

2) someone could be a multi-millionaire and buy $999,999 worth of TSLA shares and qualify the next day with minimal gains.

3) someone could be s multi-millionaire
and own $999,999 worth of Exxon and buy $1 of TSLA and qualify.

So, I think this stays subjective on the honor system. In my mind, if you’ve gone through the “dark times” of pre-summer-2019 and HODLed enough to accrue $1M, you’re in.

p.s. , I still have a way to go.

p.p.s. I’m on my third margarita

 

[M|S|M MYP]

So, I think this stays subjective on the honor system. In my mind, if you’ve gone through the “dark times” of pre-summer-2019 and HODLed enough to accrue $1M, you’re in.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

 

[Singuy]

1 million dollars worth of TSLA is my definition. As a retail investor, no matter how much you have, holding 1 mil in a single volatile company that just got a PE as of 2 months ago gets you in the club no matter what. It's what a reasonable financial advisor would call it an unreasonable risk. That's your badge of honor even if you made zero gains.

 

[bkp_duke]

Nice...
View attachment 619086

Poor poor Gordon.

 

[Pezpunk]

So today all my friends and family finally took my advice and bought Tesla stock.

(although i doubt many of them realize it)

 

[Unpilot]

After consideration, none of these are “stable” options

1) someone could be a multi-millionaire and buy $1M worth of TSLA shares and qualify

2) someone could be a multi-millionaire and buy $999,999 worth of TSLA shares and qualify the next day with minimal gains.

3) someone could be s multi-millionaire
and own $999,999 worth of Exxon and buy $1 of TSLA and qualify.

So, I think this stays subjective on the honor system. In my mind, if you’ve gone through the “dark times” of pre-summer-2019 and HODLed enough to accrue $1M, you’re in.

p.s. , I still have a way to go.

p.p.s. I’m on my third margarita

Na...it's simple you invest X...you now have 1million plus x

 

[UkNorthampton]

Poor poor Gordon.

But "Demand in the Vatican" still up for grabs. I'm really looking forward to Model Y vs VW (ID3 / 4 / 5 / 99 Luftballons) in Germany later next year.

 

[Curt Renz]

Forgive my ignorance, but how can volatility drop given how much the price swung around today? My options still show a big drop right at the end as well, still not corrected on qtrade (Canada).

Because the event is over, the market is forward looking.

He's referring to Implied Volatility, which is a plug figure that can be based on the Black-Scholes formula. Think of it as the premium in the options market for that particular set of contracts. The higher the implied volatility, the greater the premium.

Indeed, the Implied Volatility related to options is not strictly a measure of recent or current share price volatility. When examining what traders are willing to pay at any moment for an option combined with other factors, the Black-Scholes model attempts to predict future volatility, i.e. implied volatility. Particularly when an event passes which might have caused a big share price swing, both call and put option prices can drop significantly, thus greatly lowering the implied volatility.

 

[StealthP3D]

here's a screen cap of the closing cross action today for our archives

In a few years, charts of this event will be a total non-event - it will be nothing more than a barely visible blip in a long string of blips.

 

[llirk]

So... when do they announce TSLA's inclusion into the DJIA?

 

[capster]

It all depends on whether the huge AH volume - 56 mln shares so far - is index funds buying (will they do that after missing the closing cross?) or benchmark funds buying.

... or others including those who may just be trading sideways to muddy the waters