I have shorted 50 shares of Tesla at 407.00, do i hold or Short more ?

[SanMiguel]

Here is the backtest.
https://www.equitieslab.com/buying-high-vs-buying-low/

From the article:
"at the very least, we can come to the conclusion that there really isn’t an advantage to purchasing a stock based on the 52-week high or low."

I meant the amateurs buying the high/low not whether the trade was profitable.

 

[Tradex]

I meant the amateurs buying the high/low not whether the trade was profitable.

Oh I see, thanks for the clarification.

 

[SanMiguel]

Took half off at 420. Holding for 400

Will continueo to hold the other half short at this rate.

 

[TradeTune]

Too many new traders thinking they will make millions shorting stock without understanding that borrowing stock to short it, is the riskiest thing you can ever do. Your risk to the upside is unlimited. At some point, you have to cover and return the shares of stock you borrowed. Most of the time, you would be chasing the stock higher and higher, piling on the losses. In the case of TSLA, your broker will send you a margin call then, close your position resulting in huge losses for you. The broker is not going to take huge losses on your account. Why would they? If you are going to short a stock, buy a put option instead. Your total risk on a worst case scenario is losing the cost of the premium say $500 and not a penny more.

Can you buy Tesla less than 100 shares with Option ?

 

[smallfil]

Can you buy Tesla less than 100 shares with Option ?

No. Each option controls 100 shares. It gives you the right to buy the stock at a specified price. Say, you think TSLA is going to $1,000. Now, it is trading at $367.00. If you buy 100 shares, it will cost you $36,700.00. Now, say the call option at $372 strike is at $3,505 for Oct 16 2020 expiration. If you choose, you can buy 1 call option on TSLA at $372 strike for $3,505. That gives you the right to buy 100 TSLA shares at $372. Assume TSLA goes up to $1,150 on or before, Oct 16 2020, you can now buy 100 TSLA shares @ $372 although, it is now worth $1,150. You can also, just sell the call option and pocket the difference from the $35.05 you paid for it and say, it is now worth $153.00.

 

[TradeTune]

No. Each option controls 100 shares. It gives you the right to buy the stock at a specified price. Say, you think TSLA is going to $1,000. Now, it is trading at $367.00. If you buy 100 shares, it will cost you $36,700.00. Now, say the call option at $372 strike is at $3,505 for Oct 16 2020 expiration. If you choose, you can buy 1 call option on TSLA at $372 strike for $3,505. That gives you the right to buy 100 TSLA shares at $372. Assume TSLA goes up to $1,150 on or before, Oct 16 2020, you can now buy 100 TSLA shares @ $372 although, it is now worth $1,150. You can also, just sell the call option and pocket the difference from the $35.05 you paid for it and say, it is now worth $153.00.

why did you explain? I asked if you could buy less than 100 shares

 

[xandman]

You buy a call spread. The net delta is a multiplier which shows your proportional ownership of 100 shares.