Domain: tiger-web1.srvr.media3.us Investing In Tesla | Page 19 | Money Talk
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re: Investing In Tesla

Posted on 5/3/17 at 9:08 pm to
Posted by Jtigers99
Holly Beach, USA
Member since Dec 2014
1841 posts
Posted on 5/3/17 at 9:08 pm to
quote:

I've argued with DBF as much as anyone on this board, but doesn't him selling at $326 indicate a pretty damn smart move?

At least you've never gotten as run over by him as this LSURussian guy in here. Sheesh why is he still in this good thread after the beating he took?
Posted by LSURussian
Member since Feb 2005
134265 posts
Posted on 5/3/17 at 9:13 pm to
Huh?
Posted by Old Money
LSU
Member since Sep 2012
41594 posts
Posted on 5/3/17 at 9:35 pm to
quote:

He said he sold puts, not bought


Selling a put is bullish. Options 101. Jesus
This post was edited on 5/3/17 at 9:36 pm
Posted by barry
Location, Location, Location
Member since Aug 2006
51359 posts
Posted on 5/3/17 at 9:40 pm to
quote:

Selling a put is bullish. Options 101. Jesus


I have an MBA, im sitting for the L3 of the CFA and I have an options trading account.

I know what selling a put means.


I didn't understand how this such a good way to get in at a lower cost basis because if they execute the option then obviously he could have bought the stock at an even lower price than the strike price. I'm just not buying into the strategy as an efficient way to lower your cost basis.
Posted by Old Money
LSU
Member since Sep 2012
41594 posts
Posted on 5/3/17 at 9:52 pm to
Well,
1. The premium if TSLA did go up
2. Re-entry at a lower price instead of just waiting for it to drop

Instead of just waiting he took action and either way the outcome isnt bad if you're bullish and believe its a short term dip.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
82148 posts
Posted on 5/3/17 at 10:00 pm to
quote:

I just don't understand rooting for people to lose on here.

I want all you guys to make money.
This. I want all MT posters to make money, even if I'm not a part of the stock they make money in.
Posted by barry
Location, Location, Location
Member since Aug 2006
51359 posts
Posted on 5/3/17 at 10:17 pm to
I can't stand haters, they are usually unsuccessful, insecure people
Posted by Omada
Member since Jun 2015
716 posts
Posted on 5/3/17 at 10:34 pm to
quote:

I didn't understand how this such a good way to get in at a lower cost basis because if they execute the option then obviously he could have bought the stock at an even lower price than the strike price. I'm just not buying into the strategy as an efficient way to lower your cost basis.

Obviously I don't know DBF's intentions, but I think he may have sold the puts to benefit from the high premiums from the high IV of the puts before earnings. Maintain a bullish stance while possibly benefitting from IV crush once earnings were released, then use the premiums received to fund a new position, purchase calls, or to lower cost basis in the possibility of having shares put to you.
Posted by Lou Pai
Member since Dec 2014
29506 posts
Posted on 5/4/17 at 12:11 am to
I'm not sure why this is so difficult for people to grasp, but the dude is a child in the way he communicates and also seems to have a childlike understanding of how investing works. One of the most annoying posters on here.
Posted by LSURussian
Member since Feb 2005
134265 posts
Posted on 5/4/17 at 8:08 am to
quote:

I didn't understand how this such a good way to get in at a lower cost basis
As they say in the NFL, "upon further review" ( ) I think I may have figured out how selling puts is useful in lowering a person's cost basis:

If I think a stock is a good, long-term buy and I'd like to buy more but at a lower price than the current price (this is key), I determine at what price I would like to buy more shares.

I sell puts for that strike price, collect the premium for selling the puts and if the price drops to the strike price and the buyer of my puts exercises his option, I'll get the shares put to me at the price I wanted to buy more shares at.

And I have the premium I've collected by selling the puts to partially pay for the shares at the lower price that I wanted to buy more shares for anyway.

That's the best I can do to saying selling puts is "very, very shrewd" way of lowering cost basis.
This post was edited on 5/4/17 at 8:22 am
Posted by birdieman
New Orleans
Member since Dec 2012
1647 posts
Posted on 5/4/17 at 8:21 am to
I think DBF is an insecure douche but I have no problem with his play here. Making money is the goal, correct?
Posted by LSURussian
Member since Feb 2005
134265 posts
Posted on 5/4/17 at 8:29 am to
quote:

I think DBF is an insecure douche but I have no problem with his play here. Making money is the goal, correct?
It is. I also have enjoyed his posts. (Well, most of them.... )

He's childish to get mad and leave the board just because other posters on a message board don't share his opinion about a company.

After all, opposing opinions about a stock's desirability is what makes a market. For every buyer there has to be a seller and vice versa.
Posted by southernelite
Houston, TX
Member since Sep 2009
53562 posts
Posted on 5/4/17 at 8:42 am to
Tesla down as Musk derided believers in his production promises as "naive".
Posted by Omada
Member since Jun 2015
716 posts
Posted on 5/4/17 at 8:52 am to
quote:

I think DBF is an insecure douche but I have no problem with his play here. Making money is the goal, correct?

Discussing monetary issues is the goal of this board. Hopefully, this leads to monetary benefit for the readers and posters. The problem with DBF in this particular thread is that it appears that he was seeking an echo chamber, not an actual discussion. That's not beneficial to readers. What's not beneficial to posters is DBF's belligerent replies to dissenting opinions in this thread. The only benefit is for those who want to hear or be part of the echo chamber and for them to be right. If the echo chamber is wrong, no one benefits; instead, people get hurt. Disagreement is okay and vital for discussion. This thread is largely not.

I do not mean this in a bad way at all when I say that DBF should sit down, possibly with a professional, to work out whatever is causing his insecurity or is nagging him enough for him to consider downvotes and dissenting opinions as a threat. To admit he has a problem is not weakness, it's a road to recovery. To let the issue remain and fester is actual weakness. We all have issues to deal with. If he can resolve that issue, he'll be happier with his life, and TD will be much more accepting of him. Hopefully he'll read this and consider what I'm saying is for his good. TD can be harsh, but you have to ignore it or roll with the punches.
Posted by barry
Location, Location, Location
Member since Aug 2006
51359 posts
Posted on 5/4/17 at 9:08 am to
quote:

If I think a stock is a good, long-term buy and I'd like to buy more but at a lower price than the current price (this is key), I determine at what price I would like to buy more shares.


Basically its if you believe there will be a temporary dip, while the market isn't sure.
Posted by LSURussian
Member since Feb 2005
134265 posts
Posted on 5/4/17 at 9:48 am to
Yeah, I guess that's it.

I know I've looked at a stock and said to myself "If it drops to X price again, I'm going to buy it." There's no guarantee it won't drop below the X price I've set that I'm will to buy it at. But that's okay with me....at X I'm bullish on that stock so I'll buy it even without any put options in play.

So if I sell puts with X as the strike price, I collect the premium and wait.

If the stock never drops to X again before the expiration date of the put option, I just enjoy the premium I got for selling the put option.

If it does drop to X, I likely will have the shares put to me at X, which is the price I had already decided I would buy the stock at anyway.

So I buy the shares at X from the put option buyer and I use the premium that I received for selling the put to pay for a portion of the shares I buy at X.

It's sort of like using someone else's money to buy some of the shares that I would have bought anyway using only my own money if I had not sold the put options.

That's my story and I'm st..st...st....stickin' to it!
Posted by LSURussian
Member since Feb 2005
134265 posts
Posted on 5/4/17 at 10:15 am to
quote:

Tesla down as Musk derided believers in his production promises as "naive".
He's definitely cocky in spite of not ever hitting any Tesla targets he's predicted on time.

In spite of that, he continues to have a fan-boy following similar to what Steve Jobs had. The difference is Jobs delivered.

I see TSLA was down $20/share earlier this morning....down over 6%.



ETA: This news may have something to do with today's drop...

"SolarCity performance points to rockier outlook for rooftop solar" - May 4, 2017
quote:

SolarCity reported a drop of nearly 40 percent in solar installations for the first quarter on Wednesday, the latest sign of a reversal in fortunes for the once high-flying residential solar industry.

In an earnings report this week, Tesla said it deployed 150 megawatts of solar generation in the first quarter of 2017 compared to 245 MW in the first quarter of last year.
This post was edited on 5/4/17 at 1:13 pm
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 5/4/17 at 10:54 am to
If DBF sold 315 puts, then he's taking some losses today
Posted by LSURussian
Member since Feb 2005
134265 posts
Posted on 5/4/17 at 11:41 am to
Yeah, but I experience no schadenfreude when the market goes against someone.

I'm not doing too well myself today with my Exxon.
Posted by FunroePete
The Big Cheezy
Member since Dec 2012
1531 posts
Posted on 5/4/17 at 2:13 pm to
would anyone mind actually discussing my mention of Daimler stock and what the EV market means to them versus other competitors ?(Google, tesla etc.)

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This post was edited on 5/4/17 at 2:13 pm
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