It looks as though analysts are starting to change their tune about Tesla:- https://www.cnbc.com/2018/12/14/ana...ionize-consumer-habits-like-amazon-apple.html The share might be a good buy on weakness?
CNBC can get wierd on opinions, as can Bloomberg. (Both are biased toward the liberal progressive Democratic agenda; I'll just leave it at that.) I would suggest BMB members following TSLA might find the https://teslamotorsclub.com/tmc/forums/tsla-investor-discussions.119/ interesting. Recognize the postings may be too much rah rah, but view it as a piece of information to fit into the investment puzzle. That being said, it might be interesting to bottom fish by selling cash-covered puts. The $348 close today makes things interesting. Pick up a lot something around, say, ~$340 and immediately sell a covered call for pin money to expire before earnings at the end of January. I wouldn't attempt to hold options over earnings that includes an M3 production report (1k/week?). Giddyup.
Sometimes it is time to be cautious when everyone seems to be moving to a more positive stance - akin to the last leg of a bull market. The bears eventually give up the ghost and turn positive, swept along by the bull wave. Then pop! The correction they were waiting for happens. However, looking at the fundamentals the company seems to have turned a corner (no pun intended lol). Time will tell.
When the market does eventually recover Tesla will bounce fairly quickly. I think there was some chat about conversion of loan stock at or around $360 a share? That is not looking viable at the moment - does this mean the company will need to refinance the loan stock or does it have a longer duration left than just a few months?
Well, for the calendar year selling TSLA covered calls yielded 13.2% (total net call premium/total share cost basis). And that might increase a bit depending what I can do tomorrow. Calls expired on Dec 28, so tally ho... HNY all.
What is your strategy for 2019 in relation to your Tesla holding? It is starting to look as though things have turned.
Companies with any exposure to China are going to get smashed over the coming days - the news from Apple has served as a wake up call to many investors.
Chartman, if you are asking me, until the market shows signs of improving I will just continue to sell TSLA covered calls for decent premiums and let the rest of my conservative portfolio continue to collect and reinvest dividends. The CCs are usually 1 or 2 weeks or 1 month in duration. I didn't find any decent premiums available on Dec 31, so picked up a few pennies on a CC expiring tomorrow Jan 4. We'll try again on Jan 7. Wash, rinse and repeat.
