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Social Chat - Short Term TSLA Movements
- Thread starter Jonathan Hewitt
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InTheShadows
Active Member
I'm done shopping for the day. 12 different orders filled for a variety of tsla, and a mixed bag of solars today.
I hope it works out for you. The only solar shopping I have done today was JASO. Even unloaded some TSLA to buy JASO when it dipped below $11.
The market sell-off will not last, because the Chinese export data is skewed due to timing of Lunar New Year in 2014 vs. 2013 and due to "fake exports", i.e. accounting where there was a lot of book cooking that made Jan 14 exports look a lot better since they pulled Feb. exports at the cost of February. Last year the exact opposite happened, which exaggerated that number.
Nothing to worry about just yet. The headline number is scary, but there is a good reason for it. Yes, there is softening in China, but it is not that grave. Otherwise markets would be down 2% in the US.
InTheShadows
Active Member
Most of what I got was leaps. Nothing short term in solar except one June and one oct csiq ATM.
Even most of tsla was leaps.
I like CSIQ a lot at these levels and normally would be buying, but I have a lot of short term calls on CSIQ already. If the price goes up quick then my short term calls will make me a lot of money. If CSIQ continues with its weakness then I will load up later, so I look at it as a win-win.
In the mean time, I think that JASO is the best value out there so I loaded up on even more JASO today. I may turn out to be completely wrong on this one, but from all of the extensive research that I have done JASO looks very attractive at these levels.
edit: JASO looks extremely attractive relative to peers, so if the whole sector goes down then JASO most likely will as well (though it is bucking that trend today).
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Investors.com, aka Investors Business Daily, aka IBD separates stocks into 197 sectors and in 2013 the best performing sector was solar. Number 1 out of 197.
YTD 2014 number 1 out of 197 is, you guessed it:
Solar!!!
Mario Kadastik
Active Member
my bad, this article here Tesla Motors Price Target Increased to $75.00 by Analysts at Bank of America (TSLA) | WKRB News was posted today so I assumed it was smth new
That website is garbage, as are all of the other websites that look exactly the same but have different names: tickerreport.com, americanbankingnews.com, etc.
Hedged my core TSLA holdings for the second time ever today. Recent price action making me uncomfortable and I'm not seeing any well-defined positive catalysts up ahead, so I protected myself with June $220 puts. I might sell some covered calls for a "delayed construct" collar at some point.
I wouldn't be surprised / upset to lose my entire premium on these puts. Strictly a gut feeling and a price I'm willing to pay for sleeping a little better for the next couple months.
I wouldn't be surprised / upset to lose my entire premium on these puts. Strictly a gut feeling and a price I'm willing to pay for sleeping a little better for the next couple months.
I hope you are aware that hedging a stock by buying puts can reset the clock for the IRS tax definition of long term gains. Writing covered calls avoids this. Here is a link to a related article recently written by my friend Bob Gordon: http://www.twenty-first.com/pdf/Inv...ing_puts_to_protect-profits_IN_feb23_2014.pdf
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Thanks for the tip Curt. I was aware of the tax implications but as I intend to hold my shares indefinitely (well, at least through GenIII volume production) it didn't affect my decision too much. My puts will either expire worthless or I will sell them for a short-term gain.
Covered calls do not satisfy me as a hedge for a number of reasons. First, they don't offer much protection in the event of a sharp decline (e.g. Q3 / fires). Second, I am not comfortable with the possibility of an unexpected event sending share price through my strike, and facing a choice of whether to buy to close or allow my shares to be called away, all the while being left out of the movement.
Mario Kadastik
Active Member
Well options IV are relatively high so I decided to use it a bit. Sold June $225 put and $250 call for a total credit of $49. This way I either get 100 shares of TSLA @ $176 cost basis or if TSLA really moves beyond $299 by June, then my LEAPs will by far compensate this move (I have a bunch of $300 calls so I'm basically covered). Looks like a win-win situation to me and if TSLA moves sideways I just close the straddle at a later date for profit from time decay.
InTheShadows
Active Member
How you people who have a job play weeklies? I bought a couple yesterday, and I can't focus on work because I'm too worried about what my weeklies are doing!
I set alerts and my cell phone goes off if the price moves enough. I usually have multiple ones set and if it goes off two times then I look right away.
Muskol
Member
How you people who have a job play weeklies? I bought a couple yesterday, and I can't focus on work because I'm too worried about what my weeklies are doing!
I don't get much work done those weeks!
Citizen-T
Active Member
How you people who have a job play weeklies? I bought a couple yesterday, and I can't focus on work because I'm too worried about what my weeklies are doing!
Weeklies are a full time job. January and February were good 'work' months. March...not so much!
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