I got worried and sold my calls yesterday and my shares today. I actually bought two $119 puts today as I figured a lot of volume this week was retail with the big boys selling into the rally. I have been in and out the past three weeks and have racked up about $27K in gains. Did not want to get greedy. I will likely get back in if it stays stable or goes up a bit. Good luck to everyone. It's really challenging to know what to do with these high beta stocks right now.
Well I sold my calls for a nice $11,000 gain and sold my shares in my taxable account for a $4,600 gain. I then bought 400 shares in my IRA and will put a very tight stop on them (I know it won't totally protect me if it craters, but we little guys get tighter stops on shares than with options). I am going to do a straddle in my taxable account later today. Nice to get a $15,000 gain. Those don't come along every day.
Who knows? I am long 400 shares and have 20 Jan '15 95 calls that I am up $11,000 on. I am really torn about how to play this for Thursday's earnings. If they report blowout earnings those calls could go up $50,000.
I got stopped out this AM but then took an even stronger long QIHU purchasing 20 in the money LEAPS with an ultimate basis of 127 and change. If QIHU were ever acquired, I wonder what the multiple would be?
Well I am playing TSLA every way possible - long, have calls sold against my position (tomorrow) and puts 3 weeks out. At least I have my call premiums collected. I am sure I will figure out a way to lose on this anyway. This is really like playing craps at a $100 craps table.
What would QIHU fetch? Are there valuation metrics in this space. Just curious.
Sentiment: Strong Buy
Have to wonder if Morgan Stanley came out negative on BIDU to protect its new investment in QIHU. Not ethical but it is Wall Street where there are no ethics!
Just think you can buy 500 shares of Tesla and sell one week out at the money calls and make $3,500. The annualized return is huge, BUT the downside price moves on the stock can kill you. Pretty tempting however.
I am long QIHU and actually think it has as much or more potential than BIDU (I have BIDU calls); however it's quite interesting that Morgan Stanley took rouhly a 5% position in QIHU around the end of the year. In theory there is supposed to be a firewall with these analysts and the big banks, but we all know these guys are not ethical or honest so I find this downgrade quite interesting from a timing perspective. Remember the old adage that a lot more money has been stolen with a pen than a knife.
I bought BIDU calls today but unfortunately bought TSLA puts too and it's up another $6.00 after hours. Wonder how far below my sell stop my TSLA puts will blast through on the open.
This is the single biggest holding in my IRA, and I bought another 300 shares today.
This is a poster child for the CANSLIM model. I am long 1000 shares at $43 and change.