So yeah, I believe Tesla is like a house of cards. But you never know when it will fall. I am older (63 1/2), I just do covered calls mostly. If something came up, I wouldn't have to look at the market for weeks if necessary. Just wondering if I could play a drop in the stock using one of the above funds or a LLP?? How would I find those companies...Could someone post a few to choose from? The nice thing about the above, is that you don't have all your eggs in one basket. If I am wrong about Tesla, it won't be the end of the world...Slight drop (5% or so), not earth shattering. Any ideas??
Shorting Tesla using a ETF, mutual fund, or an LLP...
- Thread starter Cabin111
- Start date
I have another, but better idea. Sell vertical calls 30-50 bucks OTM on Tesla, like let's say 330/340C June (or whatever months you like) You actually posted this shorting idea under Options, so you might have had something else in your mind anyway. Advantages:
1.You get a better return on your capital than a small profit on your overall portfolio when/if Tesla goes lower.
2. You make money even when Tesla stays flat (as it has been in the last 2 years), or even if it goes slightly (less than 10-15%) up.
3. In case you are somehow wrong or some idiot decides to buy Tesla for $400, your max. loss is limited and predetermined.
As the stock starts to move down (assuming your assumption is correct), you can keep selling more and more verticals slowly following the stock, and not increasing your risk much. For every 20-30 bucks drop you sell another vertical still 30-50 bucks higher than the current price.
1.You get a better return on your capital than a small profit on your overall portfolio when/if Tesla goes lower.
2. You make money even when Tesla stays flat (as it has been in the last 2 years), or even if it goes slightly (less than 10-15%) up.
3. In case you are somehow wrong or some idiot decides to buy Tesla for $400, your max. loss is limited and predetermined.
As the stock starts to move down (assuming your assumption is correct), you can keep selling more and more verticals slowly following the stock, and not increasing your risk much. For every 20-30 bucks drop you sell another vertical still 30-50 bucks higher than the current price.