BABA and TSLA

[AstuteShift]

As in the previous update

I’ve entered in BABA and TSLA puts

BABA 160 1/2022 put
TSLA 240 1/2022 put

No spreads on these, will re-evaluate these trades when it enters the 6 month mark since theta decay will increase even more at that mark

There is one big famous trader, who shorted the housing market and made a killing on GameStop, Michael Burry. He increased his short position on TSLA and he had an uncanny ability of being right, along with SOLs indicators showing extreme overbought ranges, this is a good risk to reward ratio

Baba looks great and prime for a good short

Remember this is buying puts, you can do debit put spreads to reduce your cost and risk

[langdj]

Appreciate you "putting" yourself out there

[AstuteShift]

Appreciate you "putting" yourself out there

A good trade is a good trade

With the nasdaq close to SOLs targets, seems like a perfect storm scenario.

[Triplethought]

As in the previous update

I’ve entered in BABA and TSLA puts

BABA 160 1/2022 put
TSLA 240 1/2022 put

No spreads on these, will re-evaluate these trades when it enters the 6 month mark since theta decay will increase even more at that mark

There is one big famous trader, who shorted the housing market and made a killing on GameStop, Michael Burry. He increased his short position on TSLA and he had an uncanny ability of being right, along with SOLs indicators showing extreme overbought ranges, this is a good risk to reward ratio

Baba looks great and prime for a good short

Remember this is buying puts, you can do debit put spreads to reduce your cost and risk

I wonder to what extent Elon buying 1.5 Billion in BTC today (he has $19 Billion in cash total) will help both buoy his stock a little longer and improve his cash position? I think with an incredibly overvalued stock it was a smart move. It makes me hesitate slightly to follow your move on this. But only slightly...

So you are essentially betting Tesla will go below $240 by 1-19-22. Say the stock is $200/share that day. with 1 contract you can buy 100 shares for $200 and force the buyer of the put to buy the 100 shares at $240 netting a $4K profit is that right? Do you ever execute that transaction BEFORE 1-19-22? Or do you always wait until the bitter end?

I've sold puts but never bought one so really dumb question, if you bought one of these TSLA put contracts at say $9.50 (total $950 buy) is your total risk limited to the $950 or is there a way you could lose more? I ask because of the whole game stop fiasco and the fact that they said their were more shares shorted than exist. I know TSLA is a highly shorted stock too so could some anomaly like that happen? TIA for sharing

[Triplethought]

Because if the downside is limited to $950 I'm going to follow your lead just so I can learn.

[AstuteShift]

When you buy puts the only risk you have is what you paid for essentially. Buying puts is way safer than shorting a stock since shorting a stock your risk is unlimited if the stock explodes to the upside while with buying puts it’s only what you put down

Also if I hit 100 percent gain then I sell the contract since it’s my trading plan. I would love for it to hit sooner haha, I don’t wait until the bitter end since it’s better to get out with some money left instead of having nothing. Options are pretty risky instruments so it’s best to respect them

If by 6 months it fails or trade sideways then I get out usually, since by then theta decay is not on my side and the contracts will decay even faster

Remember, these are risky plays and you have to be comfortable with either outcome, especially if you lose.

[Triplethought]

When you buy puts the only risk you have is what you paid for essentially. Buying puts is way safer than shorting a stock since shorting a stock your risk is unlimited if the stock explodes to the upside while with buying puts it’s only what you put down

Thanks Astute, I put a limit order in on TSLA at $9.50. If I get in it might be a $950 education and I'm not sure we're investing as much as we're "betting" but what the hell. I'm not sure why you chose $240 but I do think if the market corrects TSLA will correct harder. It's a ballsy play.

[AstuteShift]

When you buy puts the only risk you have is what you paid for essentially. Buying puts is way safer than shorting a stock since shorting a stock your risk is unlimited if the stock explodes to the upside while with buying puts it’s only what you put down

Thanks Astute, I put a limit order in on TSLA at $9.50. If I get in it might be a $950 education and I'm not sure we're investing as much as we're "betting" but what the hell. I'm not sure why you chose $240 but I do think if the market corrects TSLA will correct harder. It's a ballsy play.

It was one of SOLs suggestive ranges. Either way, it is a bet and we will see what happens, I’m just using SOLs indicators to make a good risk to reward trade. Hopefully the market Gods are on our favor

[SOL]

TSLA and BABA are trading in the extremely overbought ranges, the MACD's on the monthly charts for BABA has experienced a bearish crossover. Everything eventually reverts to the mean. The market either corrects or those stocks that experienced hyperbolic moves pull back strongly as the rest of the market trends sideways or moves higher. The Nasdaq could still potentially trade all the way to 1450 but that does not mean certain sectors or stocks will not implode.

TSLA Monthly Chart



BABA Monthly Chart



To win, one has to not worry about winning, if you focus on losing factor (the fear factor), then all your worst nightmares will come to pass.

[AstuteShift]

TSLA and BABA are trading in the extremely overbought ranges, the MACD's on the monthly charts for BABA has experienced a bearish crossover. Everything eventually reverts to the mean. The market other corrects or those stocks that experienced hyperbolic moves pull back strongly as the rest of the market trends sideways or moves higher. The Nasdaq could still potentially trade all the way to 1450 but that does not mean certain sectors or stocks will not implode.

TSLA Monthly Chart



BABA Monthly Chart



To win, one has to not worry about winning, if you focus on losing factor (the fear factor), then all your worst nightmares will come to pass.

Indeed, however in terms of trading it is always prudent to have discipline, I would not place these trades if I did not believe it wouldn’t work out however I have no attachment to them since it’s just a trade. Risk and portfolio management is the keys to success as you always state

Pullbacks off much better return to stress ratio compared to shorting however I want to push my trading to the next level and be good with both styles

[ultramartian]

I am on the BABA Jan 2022 $160 put bandwagon @$7.40 per contract.

[Triplethought]

As in the previous update

I’ve entered in BABA and TSLA puts

BABA 160 1/2022 put
TSLA 240 1/2022 put

I had to chase the TSLA 240 1/22 put to $10.20 to get in. TSLA is down today...I maybe should have waited to see if it rebounds tomorrow rather than chase it. But I'm in now and I was operating on the assumption that whether I lose $950 or $1020 on this bet is irrelevant to the potential upside. Only bought 1 contract.

I'm not feeling the BABA one. Chinese stocks make me nervous. Plus I don't see any reason for it to collapse that far - earnings have been good. PE ratio a reasonable 28 (reasonable compared to TSLA). I'll watch with popcorn in hand for BABA.

[AstuteShift]

As in the previous update

I’ve entered in BABA and TSLA puts

BABA 160 1/2022 put
TSLA 240 1/2022 put

I had to chase the TSLA 240 1/22 put to $10.20 to get in. TSLA is down today...I maybe should have waited to see if it rebounds tomorrow rather than chase it. But I'm in now and I was operating on the assumption that whether I lose $950 or $1020 on this bet is irrelevant to the potential upside. Only bought 1 contract.

I'm not feeling the BABA one. Chinese stocks make me nervous. Plus I don't see any reason for it to collapse that far - earnings have been good. PE ratio a reasonable 28 (reasonable compared to TSLA). I'll watch with popcorn in hand for BABA.

Personally I never care about fundamentals but rather what SOLs customized indicators showing on the sentiment side of the trade. Mass psychology is an extremely powerful tool, especially as a trading tool, it’s genius yet its simple

I still remember using his indicators for a fabulous customized bitcoin trades and that gave me hefty profit, especially after the recent GBTC trade

I loaded up on 1/2023 TSLA 230 puts and 1/2023 BABA 160 puts.
As you evolve as a trader, good trades must be taken advantaged of, especially in this market. You snooze and you lose

[Triplethought]

As in the previous update

I’ve entered in BABA and TSLA puts

BABA 160 1/2022 put
TSLA 240 1/2022 put

I had to chase the TSLA 240 1/22 put to $10.20 to get in. TSLA is down today...I maybe should have waited to see if it rebounds tomorrow rather than chase it. But I'm in now and I was operating on the assumption that whether I lose $950 or $1020 on this bet is irrelevant to the potential upside. Only bought 1 contract.

I'm not feeling the BABA one. Chinese stocks make me nervous. Plus I don't see any reason for it to collapse that far - earnings have been good. PE ratio a reasonable 28 (reasonable compared to TSLA). I'll watch with popcorn in hand for BABA.

Personally I never care about fundamentals but rather what SOLs customized indicators showing on the sentiment side of the trade. Mass psychology is an extremely powerful tool, especially as a trading tool, it’s genius yet its simple

I still remember using his indicators for a fabulous customized bitcoin trades and that gave me hefty profit, especially after the recent GBTC trade

I loaded up on 1/2023 TSLA 230 puts and 1/2023 BABA 160 puts.
As you evolve as a trader, good trades must be taken advantaged of, especially in this market. You snooze and you lose

Question: Are you doing more than your normal "1/3 lot" ? I figure the more confident you are the more you will put at risk. I can't see why BABA should crash - it looks like the profile of one of our good AI plays that's running up. Today Cramer (aka the world's biggest stock moron" indicated he would buy BABA if it comes down a little. So that alone might be a reason to short it.

https://finance.yahoo.com/news/cramer-g ... 33336.html

[AstuteShift]

I had to chase the TSLA 240 1/22 put to $10.20 to get in. TSLA is down today...I maybe should have waited to see if it rebounds tomorrow rather than chase it. But I'm in now and I was operating on the assumption that whether I lose $950 or $1020 on this bet is irrelevant to the potential upside. Only bought 1 contract.

I'm not feeling the BABA one. Chinese stocks make me nervous. Plus I don't see any reason for it to collapse that far - earnings have been good. PE ratio a reasonable 28 (reasonable compared to TSLA). I'll watch with popcorn in hand for BABA.

Personally I never care about fundamentals but rather what SOLs customized indicators showing on the sentiment side of the trade. Mass psychology is an extremely powerful tool, especially as a trading tool, it’s genius yet its simple

I still remember using his indicators for a fabulous customized bitcoin trades and that gave me hefty profit, especially after the recent GBTC trade

I loaded up on 1/2023 TSLA 230 puts and 1/2023 BABA 160 puts.
As you evolve as a trader, good trades must be taken advantaged of, especially in this market. You snooze and you lose

Question: Are you doing more than your normal "1/3 lot" ? I figure the more confident you are the more you will put at risk. I can't see why BABA should crash - it looks like the profile of one of our good AI plays that's running up. Today Cramer (aka the world's biggest stock moron" indicated he would buy BABA if it comes down a little. So that alone might be a reason to short it.

https://finance.yahoo.com/news/cramer-g ... 33336.html

I have 3 accounts and all 3 have different ratios of money per each trade

The 2022 puts is for the smaller account
2023 puts is for the big accounts

The other is my 401k which I can only trade with ETFs but that’s excluded