But I personally place very low (almost zero) chance of that happening. In my mind more likely scenario is going down to 300-500 range. (still low% chance IMO but higher than going to zero/$100). Are you saying it's not worth trying to hedge against that, because it's too expensive AND long term believe it will go back up?
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
But I personally place very low (almost zero) chance of that happening. In my mind more likely scenario is going down to 300-500 range. (still low% chance IMO but higher than going to zero/$100). Are you saying it's not worth trying to hedge against that, because it's too expensive AND long term believe it will go back up?
I concur. PUT hedging is the solution. She'll sleep well at night. You'll get to stay in the stock. Everybody wins. Whenever she complains again, or your PUT hedges are running out, roll them. After discussing with her and making sure that both parties are happy with the decision.
If you're married or otherwise in a long-term relationship, make sure that both parties are onboard with major financial decisions. Investments aren't worth adding discord to a relationship.
They split the tasks. He makes all investment decisions, and she makes all purchasing decisions.
And yes it's been a happy 21 years so far.
I've been paying like 9% margin interest on TSLA for almost 2 years now. I hate paying it but for me it was well worth it since TSLA stock price gained much more. I'm still on margin because I think I'll get higher return than the margin interest I pay. I'm not on full margin anymore like I was last year but that's because the value of TSLA has gone up so much. So my account margin percentages have decreased even though the overall margin debt I owe have actually increased due to me buying even more TSLA shares.
More precise title: "Giving Elon Musk hell for 40 mins straight, ending with a 5 min mix of giving Tesla some sorta (but not really) compliments and giving Elon Musk hell. :-D
CyberDutchie
Active Member
If your total "taxable income" falls in the 15% tax bracket (under $48,000 this year), all of your capital gain will be taxed at 0%. So quit your job and wait for 2021 would be my advise.
Not over The Pond - we're in Belgium. Still it's all-expenses factory tour including parking, flights, meals and accommodation. Not aware of any reciprocal arrangements, they just said to him "because you're one of the earliest reservation holders". AFAIK he's not even on Facebook or Twitter...
Isn't your capital gains considered "taxable income" so it wouldn't be all of your capital gains unless your capital gains, and other income combined, are less than $48,000.
For those of you that hold TSLA common, please ignore this post.
For those of you that hold TSLA options, my 20-year experience with options is that, eventually, something bad happens unexpectedly and you lose 80% of the value of your position very quickly. Unlike holding common, it is very hard to recover from that. Once you've had a drop like that, you are going to be reticent to speculate with your remaining funds in a manner that would enable you to recover quickly.
So, protect yourself. Take some money off the table, or hedge, or put some of your winnings in lower leveraged positions.
Advice, from someone who has made a lot, and lost a lot.
For those of you that hold TSLA options, my 20-year experience with options is that, eventually, something bad happens unexpectedly and you lose 80% of the value of your position very quickly. Unlike holding common, it is very hard to recover from that. Once you've had a drop like that, you are going to be reticent to speculate with your remaining funds in a manner that would enable you to recover quickly.
So, protect yourself. Take some money off the table, or hedge, or put some of your winnings in lower leveraged positions.
Advice, from someone who has made a lot, and lost a lot.
I just thought it was interesting that Lycanthrope had a good friend ;-)
This clip has it all: wing doors, explosions, aitonomy, a scarcely populated post-corona virus world. A great idea with the bobble head: HOV lanes
Prime_Number
Member
For those times when you do need to use margin, no one beats Interactive Brokers. For larger transactions it is around 2% . Most broker rates are closer to TDAmeritrade rather than to IB .
No, 'cause I have the core shares that are just paper and could go to zero tomorrow, and I have my play account where I'm trading the the big swings, selling puts and calls. At any one moment roughly half of it is in cash, although some is reserved margin against sold puts.
My wife is the problem, she's looking at real-estate magazines and searching ImmoWeb. She has her eyes on some 7-bedroom places for around €1.4m - bear in mind we have around half that amount for the moment in total... I've told her that although selling the lot and buying such a house for cash wouldn't be a *total disaster*, we would miss out on a lot of potential upside.
Compromise I have in mind is to let her have half the pot, when it's enough, and leave the rest to grow. Then the money we save from renting can be used on a small mortgage on top.
Funnily enough, when we first made our initial investment (€60k during the big dip of Feb 2016), the idea was to grow it to buy a summer-house in Denmark. We clearly have enough to do that now, in fact we'd get something far nicer than we were thinking of, but we wait instead...
My wife is the problem, she's looking at real-estate magazines and searching ImmoWeb. She has her eyes on some 7-bedroom places for around €1.4m - bear in mind we have around half that amount for the moment in total... I've told her that although selling the lot and buying such a house for cash wouldn't be a *total disaster*, we would miss out on a lot of potential upside.
Compromise I have in mind is to let her have half the pot, when it's enough, and leave the rest to grow. Then the money we save from renting can be used on a small mortgage on top.
Funnily enough, when we first made our initial investment (€60k during the big dip of Feb 2016), the idea was to grow it to buy a summer-house in Denmark. We clearly have enough to do that now, in fact we'd get something far nicer than we were thinking of, but we wait instead...
I'm actually with TD and yes, I'm paying way too much compared to if I was with IB. I didn't know about IB until this year when couple people here mentioned using them as their broker. I wouldn't mind transferring my account to IB to get the lower margin rates but I don't know how I would do that without first paying off my margin debt at TD Ameritrade. I really don't want to sell any of my positions right now.
The dip goes with Teslaquila and chips!
Prime_Number
Member
I am not sure what tax implications your particular situation may have, but you can open an IB account, and when it is time to transfer your positions, you can for a few weeks create a synthetic stock holding using options. For example for every 100 shares you own, buy a 700 call and sell a 1100 call. You can then sell your shares. Transfer your cash and positions.
The options will duplicate exactly the behavior of 100 shares (up to $1100 per share) and cost you 25% of the value of the shares.
Once the transfer is completed, you can decide what sort of margin position you wish to have.
Other than tax considerations, everything else can be handled relatively easily.
If you are a sold out bull, or would like to increase your long position at a lower price,
the Neroden strategy of selling an out of the money put Is appealing.
For instance, sell the sept 650 puts and Collect the premium.
If the price breaks, and you get filled, your long entry point is 650 minus the premium collected.
If you fear missing the upside, buy an out of the money call with the premium
Collected from the put.
(0,-1)+p + (+1,0)-c = (1,-1)+p-c
the Neroden strategy of selling an out of the money put Is appealing.
For instance, sell the sept 650 puts and Collect the premium.
If the price breaks, and you get filled, your long entry point is 650 minus the premium collected.
If you fear missing the upside, buy an out of the money call with the premium
Collected from the put.
(0,-1)+p + (+1,0)-c = (1,-1)+p-c
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