02.28.2024
Options are not for everyone.
It is essential to know the risks of losing the entire investment.
I have been laying down my Long Term Option Strategy on Conviction stocks in previous posts.
2+ years out.
Limited investment, a small part of the portfolio.
I am Prepared to lose it all.
I keep buying continuously every 6 Months or so to cover as much time as possible.
Out of the money x2 or so, depending on the Growth Potential.
The best time to buy is at the worst time for the market or the stock.
In January 2023, it was obvious to be a very low point for TSLA stock (70% drop) and some other Large Tech stocks (META, NVDA) as well as some high-risk yet high-potential stocks after over 90% drops (CVNA, PLTR), and some others. Attached is a table showing 5 of these Options Expiring 01/17/2025 and the progress if bought on 01/02/2023 at an investment of $900 - $1500 each.
These Leaps are still 11 months before expiration and they are already Long-term Capital gain if purchased indeed last January. The TSLA option is currently the worst and it might not be successful this year. Specifically regarding TSLA options which is overall my highest Conviction, I would make sure to have June 2026 options to hopefully capture the FSD, Gen 2, and other catalysts expected in the next 2 years. TSLA is still more than 50% off ATH.
PLTR is only 30% off ATH, CVNA is very speculative and is still 80% off ATH, although is up 2000% from ATL. META is 25% above 2021 ATH, and NVDA is 120% over 2021 ATH.
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