Someone could have bought just a few 35 or 40 strike LEAPs over a year ago(which I know many people were dong with TSLA), then at the start of the short squeeze about a year ago converted them all to a lot of cheap 6-month out 75 call options and made a fortune just from those two option trades alone. I know someone who made about a 10,000% return on their 4k IRA acct from doing this trade-up, it's a gamble but can pay off. They also say they bought a bunch of Jan 2016 250 LEAPs for about $15 each in Nov.
Execution of two options trade with good timing is very rare. All these stories makes me want to find out what % of networth people put in TSLA. TMC is already a fulcrum of success stories that are very rare. Compared to the other community that I participate in (Mainly day traders), we are a cloud of positivity. I doubt the percentage of people who succeeded with the same trade is as high in the general population.
Myself I put 1/4 of my net worth in TSLA when I first invested in the IPO and promptly shut up about it because everyone I know was attacking TSLA. A friend of mine sold TSLA at $45 because he wants to buy it back at $30. Ever since then he holds a grudge against me because his wife keeps on reminding him about not listening to me.
I subsequently added more... but those are after the run up to 100, so puny compared to the initial investment. Back then, I believed in Elon and TSLA, but decades of careful money management tells me that 10% of net worth is crazy, let alone 25%.
Here's to the crazy ones.
*Edit: Since the mods eviscerated my posts I decided to add some credibility.
I had forgotten that I actually traded around my core positions and used puts to gain more shares. Here's a look at my 2011 trade history of when TSLA is around 20~30. So funny to see those options priced at $0.5
Last edited: