On Wednesday, I sold shares at around $112 to buy leaps. I bought a spread of January 2025 leaps mostly at strike prices a bit above where we are now and others at some higher stock prices we’ve seen this year. The shares I sold were ones I was planning to hold indefinitely and comprised less than 10% of my holdings.
This is certainly not advice. I felt I should share given my previously stated opinions about options. These remain and I do not consider this an about face.
On one hand, it’s still my opinion that it is a fool’s errand to try to time the market and I’m not planning to make a habit trying to do so or of using options.
On the other hand, I have sometimes wished I’d bought leaps instead of more shares in the Summer of 2019. Now feels so very like then. I’m not trying to hunt for something, it is simply that the circumstances are just so…ripe. Also and given the circumstances, I suppose I see an opportunity to reassure myself that my reticence to buy leaps hasn’t simply been a lack of, shall we say, testicular fortitude (ah, we men
).
Obviously, I am of the opinion that we’ve bottomed, but I’m prepared to accept it if we haven’t.
As for the moral hazard, it’s not great for other longs when shares are sold. However, it is in the interest of longs that Elon remain in charge at Tesla. While I don’t believe the comments by some investors, ahem
@TrendTrader007, for change will amount to much, I want as many shares as I can get to vote in Elon’s favor should it be necessary.
