Tesla, a company that elicits strong opinions – it's either adoration or disdain. Supporters remain optimistic, anticipating Tesla's potential to soar tenfold, while critics contend that the shares are overvalued, advocating for a value in the tens of dollars rather than the current price exceeding $200. Love it or loathe it, Tesla undeniably commands significant attention in the stock market. Many traders and investors have reaped substantial profits, yet a considerable number have refrained, dismissing Tesla as merely an overhyped automobile company.
Irrespective of one's stance, ignoring Tesla, or more accurately, its enigmatic figurehead, Elon Musk, proves challenging. However, delving into Elon Musk's influence warrants an article of its own, a story for another day.
While I do possess some Tesla shares, the quantity falls short for executing covered call options, which typically necessitate a hundred shares, also known as one lot, for implementation as a hedging strategy. Faced with an underlying value surpassing the current market valuation, I've opted to sell Cash Secured Put Options. This involves setting a strike price below the current market value – a figure I'm comfortable with in case the shares dip lower, resulting in the exercise of the put options.
Notably, several of the cash-secured put options have expired without value, aligning with market values remaining above my designated strike price. To adapt my strategy, I continually adjust by elevating the strike price, ensuring it remains a level at which I'm willing to acquire additional shares.
Looking ahead, my plan involves transitioning to selling covered call options once I accumulate more than a hundred shares through exercises. This shift aims to generate extra income by collecting premiums, all while maintaining a bullish outlook on Tesla and riding the share price to new highs. It's a calculated approach, navigating the dynamics of the market and aligning with my positive sentiments towards Tesla's future prospects.
@TigerStars @TigerEvents @Tiger_SG @Daily_Discussion @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
