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re: Looking at Tesla again after the split.

Posted on 8/31/20 at 11:58 am to
Posted by tigersint
Lafayette
Member since Nov 2012
3549 posts
Posted on 8/31/20 at 11:58 am to
I bought the shares already and have rode the “split news” to a 50% gain. I am thinking what to do next as rite now I am concerned that this is a “split bubble” that will come back down to reality.
Posted by TchoupitoulasTiger
NOLA
Member since May 2011
1226 posts
Posted on 9/1/20 at 1:19 am to
quote:

I bought the shares already and have rode the “split news” to a 50% gain. I am thinking what to do next as rite now I am concerned that this is a “split bubble” that will come back down to reality.


This is easy. Since you’re not exactly sure if you want to hold or sell, keep your shares and sell covered calls. If you own 100 shares you can rent out your position and get paid on the spot. Example using current market and pricing data: Sell one covered call (assuming you have 100 shares) Sept 11 $600 call and take in $1100. That’s a nice payoff. Just do this until your shares get called away.
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