01-13-2020, 10:31 AM
(01-11-2020, 12:04 PM)NilesMike Wrote: Looks like the price was $2300 +/- per contract?
Why so far OTM?
Why an outright Put buy instead of a bear put spread?
A spread of 460/410 also cost 2,300 per and would give you a MUCH wider area (time and price) in which to profit.
I hope the bottom falls out for you!
Yep. $2366.67 all in.
I couldn't tell a bear put spread from a hole in the ground. This is literally the first option purchase I've ever made.
Although "far OTM" at the moment, it's not like $300 is ancient history for TSLA. It has been well below that in just the past quarter. It's really just me betting on black at the roulette table, that TSLA will be back under that within the next 14 months. I think an earnings report or two may do it.
I may be wrong, but I don't view this as an investment like I do my DGI holdings. It is an entertainment expenditure for the year. I was willing to risk the entire stake when I purchased the option.