Team, I need money, money is what I need. Hey hey. Errr. Back to business, yesterday I contemplated a straddle on TSLA given it’s volatile nature and decided against it. Nevertheless, that was an opportunity for money to be made and now I am considering the baby brother of Elon SCTY with the mantra “In my view it is better to be impetuous than cautious”. If one was going to pull the trigger on such a move, what options would you buy? You have 10k to burn on this, what do you buy?
I swear for a forum dedciated to analyst i feel as if no one actually invests, let alone their own money.
BSM - that would be a dream but i dont play in tournys let alone such massive tournys that involve a tremendous amount of luck. Perhaps one day but as of now all i deal with is cash games.
In any event, i probably wont be cleared to make this trade and thus continue in purgatory.
Are you considering a straddle/strangle here or just a long call? A little confused by your first post.
Straddle.
Remember that part of investing is respecting your risk tolerance. For some people (especially those just out of college and not from wealthy families) it doesn’t make sense to invest (other than perhaps a few shares of SPY).
For others, if they have investible assets, maybe they’re not taking enough risk, but one rule of investing is “don’t lever your lunch money unless you’re prepared to go hungry.” The other thing is that professionals may be investing for people with investment needs completely different from yours. A fixed income investor probaly doesn’t want to have his/her personal account in fixed income assets - firstly, theres probably not enough growth for retirement; secondly, they’re making their investment returns and their returns from their job extremely correlated; and thirdly, fixed income is not a very attractive asset class right now. So people can do analysis to do their job, but stick to plain old asset allocation in their personal lives.
IMO, your payoff profile looks better with a $61/57 strangle than a $59 straddle. Doesn’t change your breakevens.
Thanks, i decided upon long scty nov calls, and short tsla, dec puts. Wish me luck all,
Can someone shed some light on the afterhours trading of scty. it beat earnings, and released good guidance but it swings up and down $4 to ($10) which is crazy for the price of the stock.
Contemplating buying a straddle on TSLA because it’s volatile and then selling puts on it doesn’t jive imo. Not sure what to say about SCTY, other than the price has arguably little impact on a stock’s volatility. M2c.
I bought puts, my bad for the confusion. I was on the conf call with scty and all was well until the analyst decided to dig into the tax revenue. In any event, Peter from CS if you are reading this bravo sir. I’ll let you connect with the new board members and take down my address, ill expect a refund in the mail mf.
whatsyourgov is rich as sh*t!
Hood rich my friend, it’s all a facade, a house of cards, but the ladies don’t need to know this.
GS released an overwriting strategy on tsla (i am locked into the other side due to compliance) and despite GS’s recommedation, i still like my chances.
http://www.valuewalk.com/2013/12/tesla-motors-inc-tsla-options/