Tesla stock

[dushensiao]

Tsla best not to sell cc on them, the risk of losing the stock is more painful then taking the monetary loss imo. I usually sell Delta 15 weekly, now iv 70% very juicy for premiums.

 

[haituni]

probably going 2k by eoy.

 

[metaverse2030]

Hi guys, I have a strategy that works very well for me, especially for Tesla stocks that is on a bullish uptrend. It can magnify returns greater than the price increase.

 

[win_man]

Hi guys, I have a strategy that works very well for me, especially for Tesla stocks that is on a bullish uptrend. It can magnify returns greater than the price increase.

i also have a strategy. Whats yours? Need attend course or watch 30 seconds video?

 

[metaverse2030]

i also have a strategy. Whats yours? Need attend course or watch 30 seconds video?

No need. also no need to sign up for webinar. Here it goes, see if it makes sense to you:

I bought a low delta Tesla LEAPS on 15 Oct 21, with a strike price of $1500, expiration date on 20 Jan 23 with a delta of 0.194. I pay at a premium of $3750 ($37.50 x 100) and Tesla’s price was $839.70 at the time of purchase. It was before Tesla’s earnings announcement on 20 Oct but I sensed that Tesla was on a good uptrend momentum. I chose a low delta LEAPS option (which translates to a low premium paid) to minimise my risk as the share price may fall back to $600 to $700 range (like the past year) if somehow the earnings do not meet expectations.


With the strong earnings quarter and a major catalyst from the announcement that Hertz, a car rental company, was going to buy 100,000 vehicles from Tesla to add to their rental fleet, Tesla’s share price skyrocketed and closed at $1,140 on 29 Oct 21.


I have shared in many articles that LEAPS can magnify our returns when the stock is on a bull run as LEAPS essentially simulate owning 100 shares but using a significantly lower capital. Because of that, the percentage return of capital is much higher as compared to owning 100 shares.


Let’s illustrate with this simple example:


Tesla’s share price on 15 Oct 21 was $839.70. On 29 Oct 21, it grew 35.8% to $1,140.


My LEAPS was purchased at $3.75k, but it grew 236% to $12.6k.


Therefore, LEAPS actually helps to magnify returns by 6.6 times (236 / 35.8).

 

[flowerpalms]

No need. also no need to sign up for webinar. Here it goes, see if it makes sense to you:

I bought a low delta Tesla LEAPS on 15 Oct 21, with a strike price of $1500, expiration date on 20 Jan 23 with a delta of 0.194. I pay at a premium of $3750 ($37.50 x 100) and Tesla’s price was $839.70 at the time of purchase. It was before Tesla’s earnings announcement on 20 Oct but I sensed that Tesla was on a good uptrend momentum. I chose a low delta LEAPS option (which translates to a low premium paid) to minimise my risk as the share price may fall back to $600 to $700 range (like the past year) if somehow the earnings do not meet expectations.


With the strong earnings quarter and a major catalyst from the announcement that Hertz, a car rental company, was going to buy 100,000 vehicles from Tesla to add to their rental fleet, Tesla’s share price skyrocketed and closed at $1,140 on 29 Oct 21.


I have shared in many articles that LEAPS can magnify our returns when the stock is on a bull run as LEAPS essentially simulate owning 100 shares but using a significantly lower capital. Because of that, the percentage return of capital is much higher as compared to owning 100 shares.


Let’s illustrate with this simple example:


Tesla’s share price on 15 Oct 21 was $839.70. On 29 Oct 21, it grew 35.8% to $1,140.


My LEAPS was purchased at $3.75k, but it grew 236% to $12.6k.


Therefore, LEAPS actually helps to magnify returns by 6.6 times (236 / 35.8).

Not everyone knows how to play options
Esp not when tesla is volatile and can trigger big movements.

 

[metaverse2030]

Oh I saw a lot of discussion on covered call and secured puts and thought it might be appropriate to share here

Not everyone knows how to play options
Esp not when tesla is volatile and can trigger big movements.

 

[loonybun]

Oh I saw a lot of discussion on covered call and secured puts and thought it might be appropriate to share here

I personally think leaps are are great too. But one just needs to be aware of the risks involved, as it has higher risks of losing the capital invested (vs owning shares). But in a rally, leaps would definitely magnify your returns.

 

[metaverse2030]

I personally think leaps are are great too. But one just needs to be aware of the risks involved, as it has higher risks of losing the capital invested (vs owning shares). But in a rally, leaps would definitely magnify your returns.

Yup, LEAPS can work the other direction too, means if stocks fall, it can magnify your loss, so got to do LEAPS on strong companies that will not plunge a lot overnight.

 

[NeedHeIp]

Anyone feels it's going way too fast up?

 

[haituni]

2k eoy on track

 

[wira]

No need. also no need to sign up for webinar. Here it goes, see if it makes sense to you:

I bought a low delta Tesla LEAPS on 15 Oct 21, with a strike price of $1500, expiration date on 20 Jan 23 with a delta of 0.194. I pay at a premium of $3750 ($37.50 x 100) and Tesla’s price was $839.70 at the time of purchase. It was before Tesla’s earnings announcement on 20 Oct but I sensed that Tesla was on a good uptrend momentum. I chose a low delta LEAPS option (which translates to a low premium paid) to minimise my risk as the share price may fall back to $600 to $700 range (like the past year) if somehow the earnings do not meet expectations.


With the strong earnings quarter and a major catalyst from the announcement that Hertz, a car rental company, was going to buy 100,000 vehicles from Tesla to add to their rental fleet, Tesla’s share price skyrocketed and closed at $1,140 on 29 Oct 21.


I have shared in many articles that LEAPS can magnify our returns when the stock is on a bull run as LEAPS essentially simulate owning 100 shares but using a significantly lower capital. Because of that, the percentage return of capital is much higher as compared to owning 100 shares.


Let’s illustrate with this simple example:


Tesla’s share price on 15 Oct 21 was $839.70. On 29 Oct 21, it grew 35.8% to $1,140.


My LEAPS was purchased at $3.75k, but it grew 236% to $12.6k.


Therefore, LEAPS actually helps to magnify returns by 6.6 times (236 / 35.8).

so better to buy LEAPS that is deep OTM ?

 

[metaverse2030]

so better to buy LEAPS that is deep OTM ?

Deep OTM will have a lower delta, but it is cheaper. Unless you have lots of cash, it will be difficult to buy ITM LEAPS for Tesla. With a lower premium, u actually lower ur risk too, cos that is max u can lose. Also, with a lower delta, if the trend work against you, u lose at a slower rate.

 

[flowerpalms]

Anyone feels it's going way too fast up?

Pull back next week. May go even lower than 1000.

 

[j4jersey.]

Pull back next week. May go even lower than 1000.

good opportunity to buy for some haha

 

[win_man]

Pull back next week. May go even lower than 1000.

Nov also have Fed meeting. Not sure if it will have any impact

 

[flowerpalms]

Nov also have Fed meeting. Not sure if it will have any impact

Yup. Expect pullback down to 1044 or even 1000 level. May even go lower than 1000. Can buy for better deal. If not, then brace and diamond hands for 1200 eoy

 

[metaverse2030]

Yup. Expect pullback down to 1044 or even 1000 level. May even go lower than 1000. Can buy for better deal. If not, then brace and diamond hands for 1200 eoy

When all the hype is gone, it will definitely going down. Just look at what happened in 2020. With the stock split and Tesla delivering half a million of vehicle, the stock shoot up till 900, then throughout 2021, it starts to fall until one stage it become 500+. Now is hyped up again. But now is dunno when it will drop again. By end of the year, Tesla should announce that they have delivered 1M vehicles and that should boost the stock price.

Personally, I have 2 strategies, one for short term, one for long term. Long term is keep holding the shares I bought at high prices (850+) last year. That one probably going to keep until 2030 when the whole has mass adopted EV. Hopefully Tesla is still the leader then.

Short term wise, I am buy Tesla LEAPS options to capitalise on the momentum, because LEAPS work best for bullish trend and magnify the gains in share price. Once the trend is over, I will sell the LEAPS and lock in the profits and wait for another chance (dip) to buy LEAPS at a lower Tesla share price. Can't really consider PUTS cos dun have that kind of budget.

 

[iceblendedchoc]

buy the dips, dca, to the moon!

 

[loonybun]