I’ve been carefully assembling a put position in TSLA stock for a few weeks now – crafted from one half TSLA January 2014 35 puts, the other half from January 2015 45 & 30 puts, basically just buying whatever I could at as cheap as someone would sell them.
Total allocation stands between 2-3% of my assets, when finalized. I won’t be buying any more, I don’t think.
Any major disruption to the castle in the cloud construction, over the next two years, will result in payday.
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you are going to get burnt, the stock is too strong.
So I lose 2-3% of my account. What is that, one weeks worth of the profits I picked up in January?
In 2 years, there may be more electric cars on the streets that are made by the like of Nissan, GM, etc with Tesla leading the pack.
TSLA’s future low price GEN III model may be the catalyst that keep the company roaring.
I was a skeptic until I saw the Tesla model at the floor room. The simplicity and the elegant design of the Tesla motor in comparison to the gasoline engine is night and day.
I now believe that electric car is here to stay.
Good luck with your bet.
Cheers!
Put aside your feelings for the product and look at the malinvestment taking place in the stock.
Good point about the feeling, that is why I’m not “investing” in $TSLA as a long-term hold. It can go on and on like Amazon.com or it can fall flat like you anticipate.
I’ll be curious to see if $TSLA is another $AMZN in the making…
I’m prepared mentally for that, but doubt it. Amazon was a product anyone could use, and it made sense from the get go, from an economic standpoint.
So far, the costs for battery replacement are just so high, even the spread between gas/electricity (based on current demand…) are not worth pursuing. And these continue to exist even after battery costs theoretically get cut in half.
TSLA is a big deal right now because people want to believe that electric vehicles have the ability to be cheaper, greener, and revolutionary. It just doesn’t seem like it.
you sound like you’re stuck in the past, talking about ” an economic standpoint.”people got money, and they wanna use it to feel good about themselves and pretend like they are saving the planet. tesla is becoming the new status symbol, its taking a lot of parking space from bmws and merc at my firm.
Good luck on your position, I’ll be eager to see the results.
How easy or difficult was it to acquire the puts that far out? Did you set multi-day limit orders?
Looking at the option chains the Jan 15 45-strike puts only have open interest of 167, while the other two puts have OI in the thousands.
Was the Jan 15 45-strike the most expensive one to acquire?
I’m trying to learn more about buying options with long-term expirys.
I don’t know much about buying put options – I simply put a multi-day order in for the price I was willing to pay, and let it ride until it was filled or as many as I could get.
The main reason I chose options here, as opposed to taking a short position, was because the stock is too faddy. Any willing to pay $100, will surely pay $150, or $200, or even $1,000. Why not? They’ve already obviously abandoned any and all dignity.
Options give me the ability to set my risk limit, then walk away for a while.
Of course, Fly just hired a blogger solely dedicated to the discussion of options. You should take up questions with him.
Yes, definitely. Thanks for the answers, sir.