Wut up homies?! Are we mooning yet? Where is
@SpaceCash and
@StealthP3D? Whose house is the party at this weekend?
All right, though seriously, I'm not popping the champagne yet. Nor willing to margin up or by LEAPS. But I have a good sized stock only position (with limited margin) and made some options money on the move up yesterday, which I converted to stock. I have no idea what the stock is going to do. Either I'm jaded or just confused. We've been here many times. It's a big move with a big gap, and we all know TSLA likes to fill the gaps, and there are even gaps below 250. But unlike previous times, I'm not convinced that this will go back down and fill. This was a major gap up, almost like a so-called "break away" gap, which could end up permanently trapping shorts below.
The stock is really behaving unusual IMO. If you look at the multi-year chart, you'll see that it bounced between approx 180-280 for years and then between 280-380 for some more years. It then had a technical break below 280 support this past spring. At this point, I expected it to either continue falling, or go back into its old range of 180-280, or make a V shape recovery. It now doesn't appear to be doing the former two, so the V shape recovery appears to be on the table. I stated previously that it would take either significant time or sig news to get back above the technical break of 280. The market has determined that this was that news. So this is what I'm hoping for, a V shaped rapid recovery with maybe a minor pullback and partial gap fill, and (eventually) new all time highs. With that said, I'm not willing to bet on it in leveraged fashion. Because we all know how TSLA can be. But to each, their own.
The other two possibilities I see are: that it's a head fake and we quickly fade back down back below into the 180-280 range. We will know whether this is true shortly. Or, second, that it forms a completely new pattern than before, where it freely moves between a new wider range between 180-380. That scenario would just royally suck IMO. As if it isn't bad enough that we had to bounce around in a 100 point range multiple times a year. 200 point range would just be hell. An example of this would be that it goes up to 320-340 (or even 380) and then goes all the way back down to 180 again. That would just suck, esp if you got leaps or other options (personally, if I bought Leaps at 180, I would liquidate them now and convert to shares, as it would just hurt too much to see those leaps come back to 180 -- been there, done that.) This is why I'm just holding shares. Yes, it takes longer till we get rewarded, but much less stress. I only give up opportunity cost and maybe minor margin interest expense.
Anyway, just some thoughts on the matter. Not advice. Good luck to all!