I'm not a firm believer in a "VW-type short squeeze" since it has been preached on TMC since as long as I can remember.
That said, if it would happen and the stock spikes, here is my strategy:
I have a sell order for about 7% of my shares at:
$1000
$1500
$2000
$2500
$3000
$3500
$4000
The reasoning is this:
- if a spike only reaches $900 or so, I'm not considering it a short squeeze and don't expect a sudden drop. If it were to happen: meh, you can't plan for everything;
- if $1000 per share is reached in the short term, I want to unload some shares gradually just in case we spike down so I can buy more with the profits.
- if we spike further, I'm taking money off the table gradually at rates of $500 per share. These are values that I won't feel mad at myself for having sold. (I won't feel mad to have NOT sold, because I do believe we will reach $4000 at some point, even though that could be ten years away.)
- if we spike beyond $4000 I will have half my shares left and I can maybe (IF I spot the spike in time) sell some more. Most likely I wouldn't be able to react fast enough, but then again, I'd already have profited greatly from the spike.
Do I think a spike is likely? No. Is my mind at ease for if the short squeeze should come? Yes.
What I'm fretting over way more is when we will move to $1000 gradually. I'd like to go all out in JUN'22 LEAPS with a $1015 strike price but if Wall street keeps TSLA range bound between let's say $400 and $700 until then I'd be screwed. Or if there is a big recession, etcetera.
FOMO is a real thing which I'm conciously battling. The counterpoint is peace of mind (à la "I'm already happy with the gains I've got").
Not advice. Good luck to all.
@jeewee3000
Have you adjusted the GTC sell orders based upon today’s post earnings action of stock price up almost $70/share after hours?