Teslanaires

[DaveT]

I have some historical data from Q2. It will make you sad.

The best single trade I think you could have done was on April 8 to buy the June 22 $60 calls for 5c each, which if held until expiration netted $40 each.

i.e. If you bought 250 contracts for a total of $1250 + commission, it would have netted $1m at expiration.

The really sad thing is this was after Elon announced Q1 was positive.

Pain. :crying:

 

[gym7rjm]

I have some historical data from Q2. It will make you sad.

The best single trade I think you could have done was on April 8 to buy the June 22 $60 calls for 5c each, which if held until expiration netted $40 each.

i.e. If you bought 250 contracts for a total of $1250 + commission, it would have netted $1m at expiration.

The really sad thing is this was after Elon announced Q1 was positive.

Wow, that kinda makes me sick. I'm pretty happy with my return so far and I've definitely been learning a lot about options with this stock. I just wish I had known more about options prior to Tesla. I was too timid to invest in options when I first bought in around $28. My first option contract (1) I ever bought was right after they pre-announced earnings, June 2013 $57.50 strike price. It's not that I wasn't bullish, I just wasn't comfortable putting money into something I didn't quite understand. So its too bad I missed that opportunity around Q1.

I'm bullish about Q2 and I am toying with doing an options play there, I just don't want invest based on emotions (like a poker player on tilt) and be too risky to overcompensate for what I missed out in Q1.

 

[Johan]

Not true...I started with just under 20k in my brokerage acct and put it mostly in TSLA options (LEAPs) last year...just was down to 13-14k acct value in Jan and now am up about 5000% from there. If I had just bought the stock I'd be up 300% which is still great but not life changing like the options turned out to be. Options were the way to go for this very special once in a lifetime situation of the Model S coming out, it was either going to be revolutionary or not and I figured I'd know by Jan 2014 when the options expired....my hypothesis was the stock would either go above 100 or below 10 by then, I'm sure other Teslanaires thought that too and took advantage with options as well.
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That still doesn't make you a Teslanaire :tongue:

All kidding aside (since you are more than halfway there), good job on the LEAPS play and I agree with you that you can easily make a lot of money in options without a lot to begin with. You just have to find that once in a lifetime investment opportunity before the market does and go all in while options are still cheap.

Very good TSLAopt!

I was early in with the stock, but late with the options. Got in/opened my options trading account April 16th this year, staret out with 10k. Being a complete newbie to options I guess I could have done a lot better, but right now looking very in the green with 70k at the moment, most of it in potentially high-yielding OTM Sept13 calls... with more days like this (TSLA currently >134) before Q2 earnings I'm not sure if I dare hold on to all of those calls til over the call...

My goal with options right now is to make those 10k in to 158k, which after 28% capital gains tax (no short/long term here in Norway) would come to 113k which incidentally is the exact price of my Model S being delivered soon . One can dream right?

 

[Nixx]

That still doesn't make you a Teslanaire :tongue:

All kidding aside (since you are more than halfway there), good job on the LEAPS play and I agree with you that you can easily make a lot of money in options without a lot to begin with. You just have to find that once in a lifetime investment opportunity before the market does and go all in while options are still cheap.

I don't think it takes a "once in a lifetime" event to make a million with options. Two other situations that I foolishly considered and didn't do anything about was fb at 18$ and Netflix at 70$. Both I looked at and said "I should just gamble and buy some of these". Both I passed on because I was being safe. Both I could have made small fortunes with if I had put a bit into options. The stock market is littered with excellent investing opportunities. One just has to find them.

Tesla was a great one for me. I netted 1200%. We will see how the q2 market reaction is.

 

[ckessel]

Not true...I started with just under 20k in my brokerage acct and put it mostly in TSLA options (LEAPs) last year.

Ah, if you play with options I suppose that's different. I barely know what an option is myself. I buy and hold. Options are more volatile investment? All or nothing?

 

[gym7rjm]

Ah, if you play with options I suppose that's different. I barely know what an option is myself. I buy and hold. Options are more volatile investment? All or nothing?

More volatile and risky, yes, but options are not all or nothing. That is the misconception that kept me away from options for so long. You can buy and sell the option contracts like stock at a given price. You can also roll the option to lock in profits when it is favorable to do so.

 

[EnergyMax]

I won't hit this milestone for a long time - I'm a simply buy and hold long-term stock holder. I have calculated that if the share price hits $659, I'll have $1M gains post-capital gains. I plan on holding past that point if ever it is reached. This is far more money than I've ever earned.

 

[austinEV]

I had 6 figures of $ in calls going into Q1 announcement... Really, that was the easiest call I ever made. 1) shorts were set up so a squeeze was almost guaranteed 2) stock was undervalued by any measure and 3) a beat was a virtual certainty. I wish I was as certain about the Q2 setup. The stock is now at least partially valued for future performance and there is less short interest. I still think the market is "dumb" about TSLA and an earnings beat will cause a spike as has been discussed on these boards. But going into the next 12 months I think we will see as many down days as up.

 

[twinklejet]

I think whoever that makes $1m in the stock should cash out $120k and buy the Model S straightaway. This will cause a vicious cycle that helps your remaining stock gain even more (if EVERYONE does this...)!

 

[Johan]

I had 6 figures of $ in calls going into Q1 announcement... Really, that was the easiest call I ever made. 1) shorts were set up so a squeeze was almost guaranteed 2) stock was undervalued by any measure and 3) a beat was a virtual certainty. I wish I was as certain about the Q2 setup. The stock is now at least partially valued for future performance and there is less short interest. I still think the market is "dumb" about TSLA and an earnings beat will cause a spike as has been discussed on these boards. But going into the next 12 months I think we will see as many down days as up.

Agree with your statement about post Q2 stock moves. If I make a nice profit on Q2 report I will cash out for now on the options, but probably not on the stock since it will be too hard to know when to buy back in and I would hate to miss out on a re-entry. Then perhaps short-term option plays dependent on "then and there conditions" in close relation to Q3 and Q4 reports, Gen III launch etc.

 

[ggr]

I'm told, I can start drawing down the IRA without penalty in a few years, when I hit 55.

Whoever told you that is wrong. The age is 59.5. Any withdrawal before that age gets hit with an automatic 10% penalty.

PS. Yes, I'm in the club.

 

[farhad]

In the same boat as a lot of others here. Was really interested in Tesla when the stock price was in the low 20's but being a new grad just didn't have any money to put in. Bought a house so the little savings I gathered went towards that. Then slowly started putting any monthly savings I could into TSLA stock, but again that wasn't much. Wasn't (and still am not) too familiar or comfortable with options so have stayed away from them. But after hearing all the stories on here about options maybe it's time for me to start exploring it a bit more

Definitely far from a Teslanaire, but can't complain

 

[Liz G]

In the same boat as a lot of others here. Was really interested in Tesla when the stock price was in the low 20's but being a new grad just didn't have any money to put in. Bought a house so the little savings I gathered went towards that. Then slowly started putting any monthly savings I could into TSLA stock, but again that wasn't much. Wasn't (and still am not) too familiar or comfortable with options so have stayed away from them. But after hearing all the stories on here about options maybe it's time for me to start exploring it a bit more

Definitely far from a Teslanaire, but can't complain

Agree... If anyone knows a good Options101 site please pass it on.

 

[ModelS8794]

Whoever told you that is wrong. The age is 59.5. Any withdrawal before that age gets hit with an automatic 10% penalty.

PS. Yes, I'm in the club.

You have options to take penalty-free early withdrawals of your IRA using SEPP. You'll want to speak to a financial planner or tax advisor for the details.

 

[tlo]

I would imagine that a few folks who stopped posting on these forums have "joined the club" and are enjoying life on a tropical island. luvb2b, for example?

I'm more curious to find out what happened to iamthecauliflower.

 

[Convert2013]

I think whoever that makes $1m in the stock should cash out $120k and buy the Model S straightaway. This will cause a vicious cycle that helps your remaining stock gain even more (if EVERYONE does this...)!

I am purchasing a Tesla with someone else's cheap money (a bank) payed for by my day job when the stock reaches $200 (to start the vicious cycle you talk about which I agree with 200%). No plans on cashing out capital in Tesla stock which is THE growth story of our lifetime. ;-)

 

[TSLAopt]

Agree... If anyone knows a good Options101 site please pass it on.

If you go to The Options Clearing Corporation (OCC) then go to their education section that would be the best place to start learning.

 

[ggr]

You have options to take penalty-free early withdrawals of your IRA using SEPP. You'll want to speak to a financial planner or tax advisor for the details.

Neat! Thanks for the info about SEPP. I wasn't aware of it, and I thought I knew about this stuff since I'm getting up there...

 

[Blurry_Eyed]

I will just say thank you to Elon, Tesla and all the great posters in the various discussion threads on TMC and the Tesla Motors website forum for helping me join this club!

 

[StapleGun]

So, if you are young and your investment seems small compared to those around here with a few $100k to throw at TSLA, fret not, you too can a Teslanaire at the same stage of life as those that are hitting that mark today.

That's exactly my situation. I just opened my IRA a couple years ago but luckily I've been invested in Tesla since the $30 days. My earnings are a paltry sum compared to many on here but it's given me a great head start and hopefully over the years it will enable me to eventually make those enormous sums.