My decision to buy puts on Tesla on Wednesday was a good one, to put it mildly. They were up 21% at the close, and I was really questioning my sanity about holding them into earnings. My fears were quickly displaced as the stock went into a post-conference-call free-fall. I was most particularly proud of stating in advance of earnings that the first target was $220, and, BANG, we met (and exceeded) the target the very next day! A 45% profit for an overnight trade suits me just fine.
Let’s just say that all the price-cutting is definitively being reflected in the shrinking income. I still believe that, well within the next decade, Tesla will be the most valuable company on the planet, but I think they’re definitely going to be in a trough for a while here.
