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Stock Market Options Trading

108: Building a Position in Tesla (TSLA)

Jan 31, 2024
Exploring the rationale behind building a position in Tesla during a downtrend, with a focus on volatility and potential monetary policy shifts. Insights into strategic position building, covered call selling, and the influence of Kathy Wood's investment moves on market outlook.
12:33

Podcast summary created with Snipd AI

Quick takeaways

  • Buying Tesla shares due to expected shift in monetary policy by the Fed and potential favorable conditions for stocks.
  • Opting for plain stock purchases over options trading to gradually accumulate shares and potentially benefit from a move higher in the stock.

Deep dives

Reasons for Starting to Buy Tesla Shares

The podcast host explains the reasons behind starting to buy Tesla shares, despite its 25% decline and contrary trend to the market. One key factor influencing this decision is the expected shift in monetary policy by the Fed, potentially leading to favorable conditions for stocks. Additionally, the volatility of Tesla stock and its potential for significant movements play a role in the decision-making process. The host mentions utilizing a longer time frame for this trade compared to his usual trading style.

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