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Looking at Tesla again after the split.

Posted on 8/31/20 at 11:29 am
Posted by tigersint
Lafayette
Member since Nov 2012
3548 posts
Posted on 8/31/20 at 11:29 am
Currently have a good bit of shares that I bought at $1600. I have seen nearly 50% increase since then. How high do you think this can get before it comes back to reality? I am considering pulling out soon but I want the boards opinion.

So is this a legit tech company that is currently undervalued or a glorified car company that is highly overvalued?
Posted by Stiles
Member since Sep 2017
3404 posts
Posted on 8/31/20 at 11:33 am to
Board’s opinion:

Are you looking at buying 4 or more shares? If so, why’d you wait until after the split?
Posted by LSURN98
Jupiter
Member since Oct 2019
448 posts
Posted on 8/31/20 at 11:50 am to
quote:

is this a legit tech company


Yes

quote:

undervalued


No

quote:

overvalued?


Yes
Posted by tigersint
Lafayette
Member since Nov 2012
3548 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 Cdawg
TigerFred's Living Room
Member since Sep 2003
59443 posts
Posted on 8/31/20 at 12:06 pm to
quote:

before it comes back to reality?

define reality right now.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11079 posts
Posted on 8/31/20 at 12:10 pm to
quote:

So is this a legit tech company that is currently undervalued or a glorified car company that is highly overvalued?


Depends. Do you believe in sun monsters or not?
Posted by Got Heeem
Georgia
Member since Sep 2012
3631 posts
Posted on 8/31/20 at 2:26 pm to
Collect profits. Take a more conservative approach with what you feel comfortable with.

It's a unicorn. The bottom may fall out or it may continue its insane rise.

I doubt anyone here can truly predict it.
Posted by tigersint
Lafayette
Member since Nov 2012
3548 posts
Posted on 8/31/20 at 3:50 pm to
So i have one more question. If i hold this stock for a year or more then i will pay less in capital gains is that correct?

Is capital gains for less than 1 year of holding based on income that year? Or is it a set %
Posted by plaric
Pike Road, Alabama
Member since Jun 2011
2204 posts
Posted on 8/31/20 at 3:52 pm to
Set percentage depending on the capital gain status (short or long term).
Posted by planecopy
Member since Mar 2020
37 posts
Posted on 8/31/20 at 6:32 pm to
quote:

Collect profits. Take a more conservative approach with what you feel comfortable with.

It's a unicorn. The bottom may fall out or it may continue its insane rise.

I doubt anyone here can truly predict it.


Easier said than done. I told myself I would sell when it hit 1k a share but didn't thankfully. Ive told myself when I hit 100k profit I would sell. I hit that today but am still holding.
Posted by Auburn1968
NYC
Member since Mar 2019
19418 posts
Posted on 8/31/20 at 8:25 pm to
I think I would put a stop-loss order in just below its daily swing range and ride it while adjusting the stop depending on what it was doing.
Posted by TchoupitoulasTiger
NOLA
Member since May 2011
1222 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.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
30550 posts
Posted on 9/1/20 at 11:00 am to
It’s overvalued, but that doesn’t mean the stock price will go down to reflect it
Posted by RussianFromLSU
Baton Rouge, LA
Member since Nov 2014
192 posts
Posted on 9/1/20 at 11:43 am to
Go all in and then once you have at least 100 shares. Sell covered calls and make BANK.
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