Shorting TSLA & Buying TVIX
We're still double-short Tesla at an average of $358 and will now add a 3rd position, with no stops in place.
And why not? Nothing has changed fundamentally for this company, and even if CEO Musk were responsible, credible and honest, and the company had nothing at all suspect with its operations or accounting, and taxpayers weren't being totally scammed to the company's considerable benefit then it'd be very generously valued around $75 with a tsunami of more respectable and reliable competition hitting the market at the top of an epic global credit bubble.
The Buffalo News: Tesla's Buffalo plant gets $884 million write-down
Bloomberg: Elon Musk’s Solar Deal Has Become the Top Threat to Tesla’s Future
Anton Wahlman: Tesla Lost Market Share In Q3 To BMW, Mercedes, Audi And Volvo
TSLA traded as low as $177 this year, about half of the current price and of our average short entry.
Its low was posted on June 3rd. The day before, on June 2nd we noted that Tesla "is at a confluence of technical support shown in this chart [below] by the blue lines. A bounce is not a given though if it occurs it should not surprise."
Try to keep a straight face as you read this; Tesla is currently the most valuable car company in the United States.
Like Tesla, stocks overall are ridiculously overvalued and the current bull market is exceptionally long in the tooth:
We'll add to our existing general market shorts via TVIX once it trades above today's close of $7.83
We'll not utilize a stop on this position, considering it a lottery ticket that will not expire.
We traded TVIX once before per this blog, in late July of 2019.
We closed the position for a gain of 43% just a few days later.
It's a highly levered instrument - great gains can easily be, or become, great losses - so keep your individual needs and risk profile in mind if considering it.
And why not? Nothing has changed fundamentally for this company, and even if CEO Musk were responsible, credible and honest, and the company had nothing at all suspect with its operations or accounting, and taxpayers weren't being totally scammed to the company's considerable benefit then it'd be very generously valued around $75 with a tsunami of more respectable and reliable competition hitting the market at the top of an epic global credit bubble.
The Buffalo News: Tesla's Buffalo plant gets $884 million write-down
Bloomberg: Elon Musk’s Solar Deal Has Become the Top Threat to Tesla’s Future
Anton Wahlman: Tesla Lost Market Share In Q3 To BMW, Mercedes, Audi And Volvo
TSLA traded as low as $177 this year, about half of the current price and of our average short entry.
Its low was posted on June 3rd. The day before, on June 2nd we noted that Tesla "is at a confluence of technical support shown in this chart [below] by the blue lines. A bounce is not a given though if it occurs it should not surprise."
What a bounce it's been!
Many times this year we stated that we'd consider adding a 3rd short position if the stock managed a material rally, and we consider being able to sell it above $300, much less around $350 (Tesla closed today at $349.35), as a great gift.
Try to keep a straight face as you read this; Tesla is currently the most valuable car company in the United States.
Like Tesla, stocks overall are ridiculously overvalued and the current bull market is exceptionally long in the tooth:
We'll add to our existing general market shorts via TVIX once it trades above today's close of $7.83
We'll not utilize a stop on this position, considering it a lottery ticket that will not expire.
We traded TVIX once before per this blog, in late July of 2019.
We closed the position for a gain of 43% just a few days later.
It's a highly levered instrument - great gains can easily be, or become, great losses - so keep your individual needs and risk profile in mind if considering it.
posted by C. Guinness @ 11:18 PM
<< Home