Thanks but I'll stick to TSLA. I don't like trading double digit stocks because I have to increase size to match triple digit stocks returns. It should be the same but I'm not used to it.
Holy Grail $TSLA trade
- Thread starter guru
- Start date
Let me know when you figure this one out, please…. Lol.
I have figured it out, the Holy Grail skill of being able to trade the S&P daily -- I wouldn't be mentioning it otherwise,
Trading the S&P daily, combined with options, that's an explosive combination. A nuclear bomb. The Holy Grail of printing money from the market,
Guru, firstly, it's great to see you posting again. I always enjoy your trade ideas. I've had a quick look at this one. As with all ratio trades, there is a "valley of death" in your TSLA trade and the need, as you pointed out, to get out quickly if a good profit doesn't materialise.
To a novice, the idea of opening a trade for a credit and closing it for an even bigger credit sounds like the Holy Grail. However, your trade has a margin requirement which is around $19K, which means the profit you made is around 7%. Not knocking it, just playing the devils advocate. Scaling this would require some serious margin.
Care to explain this a little more? I thought the alpha was mainly due to the trade structure (ratio, with positive deltas) and nothing to do with the timing - unless you had some custom built scanner which checked the IV's of hundreds of legs regularly, and the moment it saw this combo, and some skew, it alerted you to the trade and you pounced. I'm not looking for any secret sauce, but curious how you came up with this trade, and what made it a case of "proper timing".
To a novice, the idea of opening a trade for a credit and closing it for an even bigger credit sounds like the Holy Grail. However, your trade has a margin requirement which is around $19K, which means the profit you made is around 7%. Not knocking it, just playing the devils advocate. Scaling this would require some serious margin.
Care to explain this a little more? I thought the alpha was mainly due to the trade structure (ratio, with positive deltas) and nothing to do with the timing - unless you had some custom built scanner which checked the IV's of hundreds of legs regularly, and the moment it saw this combo, and some skew, it alerted you to the trade and you pounced. I'm not looking for any secret sauce, but curious how you came up with this trade, and what made it a case of "proper timing".
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(Bloomberg)
Offloading Tesla
"Elon Musk offloaded $6.9 billion worth of Tesla stock, saying he wanted to avoid a sudden sale in the event he’s forced to go ahead with his deal to acquire Twitter. Tesla's CEO tweeted that he was done selling and would buy shares in the electric-car maker if the Twitter deal doesn’t close. Tesla rose about 2% before the start of regular trading Wednesday, while Twitter jumped 4.4%. Musk has now dumped about $32 billion worth of Tesla shares since November. The world’s richest person said less than four months ago he had no further stock sales planned and has attempted since then to terminate his $44 billion acquisition of Twitter."
The guy is always playing games.
Offloading Tesla
"Elon Musk offloaded $6.9 billion worth of Tesla stock, saying he wanted to avoid a sudden sale in the event he’s forced to go ahead with his deal to acquire Twitter. Tesla's CEO tweeted that he was done selling and would buy shares in the electric-car maker if the Twitter deal doesn’t close. Tesla rose about 2% before the start of regular trading Wednesday, while Twitter jumped 4.4%. Musk has now dumped about $32 billion worth of Tesla shares since November. The world’s richest person said less than four months ago he had no further stock sales planned and has attempted since then to terminate his $44 billion acquisition of Twitter."
The guy is always playing games.
I'm looking for TSLA to drop below 800 and asked my buddy Elon to help me out.
Hey Vic, got your 2020 Mojo back!
NOT FAIR!