How to Make a Killing in Tesla
There is no doubt in my mind that a major leg up in Tesla shares is coming, possibly soon. That’s because of the increasing number of “Bigfoot” type sightings of the Cybertruck, the most revolutionary new vehicle launch in a decade.
Social media is increasingly being populated by links to secret videos, drone pictures, charging station sightings, and insider leaks.
The car will me made of flat stainless-steel panels to cut costs on those expensive curves. The windows are armor-plated. It has a towing capacity of 14,000 pounds, can accelerate from zero to 60 mph in 2.9 seconds, and boasts a 500-mile range. It moves the auto industry to a 48-volt platform to save on copper costs. You can have all of this starting at $60,000.
To get on the waiting list, please click here. But you may have to wait for two years to get one. You’ll be somewhere in the 2 million waiting list.
Not only did I pay for this year’s summer vacation with this year’s Tesla profits, and it was not exactly a cheap one, but I paid for next year’s as well. I’m taking a Queen Mary owner’s suite, Orient Express, Hotel Cipriani in Venice kind of vacation.
I’m about to make a lot more.
I get most of my ideas for trade alerts from my own trading. They’re just infinitely more aggressive than the ones I send to the Mad Hedge Trade Alert service. I am much more careful with client money than my own, as I hate losing other people’s money more than anything.
I would never recommend what I did below for mere mortals. If I did, I’d probably end up in jail.
One great high risk leveraged strategy is to sell short Tesla puts outright. All my puts that I sold short this month for $12-$16 are expiring worthless.
It’s not for the faint of heart and it takes a half-century of risk tolerance building to do this kind of trading. Never short more puts than you can afford to buy the stock.
There were a few things required to do such a trade.
Since no one ever gets the absolute bottom, the initial outcome of a large leveraged position is a big loss. Most of you would stop out of the position when this happens. I kept doubling up.
For I had the power of my own convictions.
By selling short puts, I was more than happy to buy Tesla stock lower down if the stock went against me. Using margin, I could buy a lot of stock.
Now that’s a trade!
When I added this position, I thought it highly unlikely that I would get to buy Tesla stock at low prices for the following reasons:
1) The stock market was oversold.
2) Tesla was even more oversold, having fallen 30%.
3) A classic “cup and handle” formation was setting up on the charts. Upside breakout day was July 24.
4) The Volatility Index (VIX) failed to confirm the selloff.
5) After sitting in the sidelines investors had accumulated massive amounts of cash.
6) We are about to move into strongly positive seasonals.
7) Tesla is getting ready to buy back its own stock.
8) Tesla bears, and there are always a lot of them out there, had just freshly topped up their short positions, leaving the stock ripe for a short squeeze.
9) Tesla is one of the most volatile stocks in the market, with option implied volatility regularly hitting 100%. By comparison, the S&P 500 (SPX) sits at a positively boring 20%.
10) Fears of a deep recession were wildly overblown.
The real cherry on top of the cake was the $370 billion Biden Climate bill, which no one expected, came totally out of the blue, and had a ballistic effect on Tesla shares. Tesla is the overwhelming beneficiary of this legislation.
They might as well have called it the “Tesla shareholder enrichment plan.”
It’s easy to commit to paying $245 for a stock that you think someday will be worth $10,000. Tesla is currently the fastest-growing car company in the world with a near global monopoly in EVs. Its market share is 66%. The best Henry Ford could do with Ford Motors (F) in the 1910s was a US market share of 75%.
So, I will probably be doing a lot more of these. I don’t need the money; I just love winning.
You’ll be the first to know.
Tesla Just Bought Me Another Tesla
