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.
Filed under: Stocks, Tesla Stock | Tagged: Elon Musk, Stocks, Tesla Motors, Tesla Stock | 15 Comments »
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