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TSLA Trading Strategies
- Thread starter Robert.Boston
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- TSLA
Congrats to grr and Muskol for some nice plays!
My strategy with my trading cash is simple: find ways to make money by holding ITM calls until the epic short squeeze comes (when there's lots of money to be made). I sold my June 180s before the ER and this morning bought Sept and Dec 200s on the dip. I'll keep rolling out my mid-term calls as necessary until I enjoy the aroma of short squeeze in the morning.
My strategy with my trading cash is simple: find ways to make money by holding ITM calls until the epic short squeeze comes (when there's lots of money to be made). I sold my June 180s before the ER and this morning bought Sept and Dec 200s on the dip. I'll keep rolling out my mid-term calls as necessary until I enjoy the aroma of short squeeze in the morning.
The Michigan tool maker acquisition is a public company? RIVT -- wow. The news hit the Tesla wires a while ago and RIVT stock (a penny stock) traded way up. How is it even trading right now if Tesla is buying it? What does owning shares of RIVT mean if/when deal closes -- free TSLA shares?
igotzzoom
Active Member
I also bought a penny stock that could benefit from Tesla and the Gigafactory. Western Lithium (WLCDF), which owns rights to a large lithium mine in Nevada. Neither Western Lithium or Tesla has explicitly said the two companies are in any kind of discussions or formal business relationship, but the stock is about $0.50 a share, so I bought up a bunch (for me, at least). Even if it completely tanks, I'm only out a few hundred bucks, but the upside potential could be huge. Guess we'll have to wait & see.
Gtoffo
Member
Can't believe that thing was publicly traded for hours before going up 3600% and nobody noticed.....we suck guys :-D
beeeerock
Active Member
My question too... whoever had shares when it was worth 2.5 cents is laughing right now... what happens to it next? Surely it can't still be a steal of a deal?
beeeerock
Active Member
Argh. At one point, it was up 46x for the day. I could've turned my IRA contribution into over $250,000...or $0. Doh!
beeeerock
Active Member
So a question to the guys who trade regularly (I don't know nuthin' 'bout nuthin' when it comes to this stuff - I watch this thread to learn)... while satisfying my curiosity I saw an article that suggested Acquisition LLC might also own the old RIVT shell. Is that likely? And if so, might they put it to use somehow? Just wondering.
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I wanted to post my basic strategy right now. I am rebalancing every six months with the rest of my portfolio. I have the furthest dated LEAPs possible, and will roll forward on 12/1. I buy 50% more calls than the amount of stock I hope to ultimately own and at the lowest possible strike price. The only other limit is that my strike will never be above 500 or the lowest available. At that point I will wait to turn the TSLA position into the number of shares I hope to own along with enough non-TSLA money to ensure a decent retirement even if TSLA goes to 0.
I think it will be easier to watch an extended period of downward share price movement because I will have less of my overall portfolio invested while still reaching my goals. I feel I will end up better off in the event something unexpected happens that stops or severely slows Tesla's growth. I also don't have to worry about timing the bottom with this strategy either yet I am still able to reach my goals assuming Tesla's plans come to fruition.
I thought I'd share in case someone else finds it an interesting approach and/or I am taking some kind of ridiculous risk here I didn't see. Of course, I do realize this is a high risk strategy.
I think it will be easier to watch an extended period of downward share price movement because I will have less of my overall portfolio invested while still reaching my goals. I feel I will end up better off in the event something unexpected happens that stops or severely slows Tesla's growth. I also don't have to worry about timing the bottom with this strategy either yet I am still able to reach my goals assuming Tesla's plans come to fruition.
I thought I'd share in case someone else finds it an interesting approach and/or I am taking some kind of ridiculous risk here I didn't see. Of course, I do realize this is a high risk strategy.
I'm trying to parse the strike price you're using--you're buying LEAPS at $50 currently (the lowest available strike price)? If so, that seems highly conservative and putting yourself at risk of poor liquidity. If I were looking to buy deep ITM LEAPS, I'd go for $150s, which is the lowest strike price with reasonable liquidity (currently 888 open interest).
Or am I misunderstanding your strategy, and you're buying the highest price available, but not above 500?
mershaw2001
I'm short the short sellers
Although I'm usually playing the options side of tesla, no premiums have come down since earnings except for the weeklies so I've decided to switch over to just buying shares.
So lets say I want to ultimately have 1,000 shares of TSLA. Then I buy 15 calls at the lowest strike price I can get while keeping it within the set percentage of my portfolio. So if I have $50,000 to spend it would be a strike of $280 right now. ($50,000/1,500)
I see, I see, I get the picture. You want to spend about $33.33 on each LEAP contract based on your formula, and at the time that gave you a $280 strike (it might be $290 now, after close: $280 strike $35.50 ask, $290 strike $32.80 ask). That's an interesting formula, because the units don't agree. Having said that, though, I must say it's better than my (nonexistent) formula, which I applied this morning to buy $350 strike.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
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