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Lets Be Reasonable . . .


Sometimes we have to just be a little more reasonable.

OK.

We rode out this Tesla party.

But this is getting crazy.

Time to take some profits and place some puts.

I’m selling 2/3 of my Tesla position.

This stock is so overvalued at this moment, stop buying it.
Right now!

Take your profits.

Because of the hype and over priced shares this stock will also overreact at any bad news.

If earnings are off, if a wheel breaks, if Elon flatulates downwind!

I’m guessing this stock cannot take any stress right now at this price.

I’m buying heavy puts for chains at a 20 point drop by the end of the year.

If the stock goes up, guess what?
Don’t panic.
I’ll buy even more puts.  This price will make Tesla stock even more Volatile to the slightest tension.

It is a gamble, but I think it is a good one.

Keep 1/3 of your shares in case the crazy ride continues to climb.
You already received healthy profits.

Hedge the crazy price with some puts on a volatility play.

You are going to be safe.

17 Responses

  1. Why did this company get so over valued anyway?

  2. Amazing!

    Good call on Tesla.

    I thought they were too high also, but I couldn’t get the timing right.

    • So what are you going to do now with Tesla?

  3. Tesla has been a crazy ride, I still don’t think they have it in them. If they set up all these power stations, wouldn’t they fall under some monopoly law?

    Think about it, they would draw power from the public grid, so they would be forced to share with others that enter the market.

    It would be stupid for companies to build five different energy charging stations on every corner when all the electricity comes from the same source, the grid . . . ?

    It isn’t like they have their own trucks delivering gas from their own refineries . . .?

    • There was a good article in Forbes this year on the grid capacity and electric cars, you’ll have to look it up ….

      • Saw it. It was really good. I have to believe the post author saw that.

        I am following the post advice, it basically has been on the money every time.

  4. Elon is amazing

    • Gotta respect EM, the guy just keeps making the right moves.

      He was even very genuine about the over price of his stock . . . in tesla.

      You know a stock is gonna drop when a big stakeholder thinks it is over priced, did anyone watch the inside buys and sells?

  5. The new car line is not going to hit 13% EBIT margins.

    There is no way this stock as present value will meet long term expectations. Even at this price I am buying some more puts.

    • Good point

  6. Tesla still way overvalued, they are not going to meet net sales revenue to support even the present valuation,

  7. Look at th tesla party now . . . you were right

  8. I was reasonable, that Tesla was crazy price.

  9. Excellent!

  10. I think tesla is worth almost nothing

    • I think that is overreaching?
      Worth nothing?

  11. Thank you so much.

    I didn’t know what to do with my tesla.

    I’m so glad I followed the opinion on this site.
    thnaks again

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