GG to those who sold TSLA Put Options

Disclaimer it was my YouTuber follower that emailed me this… he said its from a telegram group chat… I dunno where okay.. but I not trying to mock or insult anyone.. just sharing my honest views and thoughts ok ^_^

Since one year plus ago I had been warning of the hype on TSLA, ARKK and Crypto on investing note… many times I highlighted of the fake gurus are telling you to sell put options to earn the extra income… it sounds too easy money… and they are not telling you about the potential risk and dangers!

if u sold a TSLA put at 1000 strike… now its 700 level…your loss is 300 minus the premium of say 100 collect.. u lose 200…

In the stock market any stock can go to Zero! Enron was once a fast growing energy blue chip giant… Enron was the TSLA of 1980s then… it turned out to be a scandal and it crashed to ZERO… nothing…

if u did the same selling put option strategy on Enron.. you are risking 10 units to win 1 unit!!! You are actually 10 times leverage!

It feels easy money to collect the $100 upfront… but u are actually selling volatility… you are selling insurance and your hope is that the house doesn’t catch fire… but in the rare event that the house does catch a fire and does get burn down to the ground.. you end up still having to buy the house for $1000!!!

Yes… if Enron or TSLA goes down to Zero you lose $1000… on the flip side.. the hero that bought the put options made 10x his money.. he turned $100 into $1000… and you lost 10x your money! Cold hard truths

Can TSLA go to Zero? unlikely… but its not impossible…

Can TSLA go to $600… the bulls said it was not possible but now its most likely as margin calls have already piled in…

Can TSLA go to $300… a 75% crash from $1200 peak.. my honest answer is yes… even a blue chip big tech company like Alibaba can trade like a penny stock and crash from $300 to $75… a 75% drop… so why can’t TSLA crash 75% to $300.. its very possible…

and when that happens… you need to cough out $1000 to buy the TSLA shares… when the market is trading it at $300… and TSLA is making $12 a share at a PE of 25 times… which is still only reasonable for a big tech

I previously shared my entire experience on facing Alibaba margin calls… I keep selling my shares to reduce my position to prevent a liquidation.. I ended up selling 25% of my Alibaba shares… reducing from a peak of 13,000 shares to close to 10,000 shares… it was extremely stressful to wake up every morning seeing that you are facing a margin call and either have to top up cash or sell some shares… the same thing is happening to TSLA holders now…

My honest and serious advise is as follows

• If u are getting margin called… sell what is needed to be sold.. don’t look back

• stop trying to buy or average down… your goal now is to survive!

• don’t try to take a bank loan or borrow money from friends to top up… don’t play with borrowed money.. do not get into debt

• you should be mentally prepared to lose your entire stock portfolio if someday the stock gaps down 20% and you get wiped out.. so be it..

• learn from your mistakes and become a stronger person

I know I am known as the Evil Villain aka TSLA bear… the hardcore TSLA bulls will continue to hate me and piss on me its really okay… I just having my fun time talking cock on YouTube and SubStack… but in this post my advise is honest, real and serious… as I have been through this before…

I made a big big mistake of over leveraging on Alibaba at 1.5 times… I should had margin 1.2 instead of 1.5 I was a greedy pig and in the end I got punished… I admit to my mistakes.. I blamed no one but myself… I don’t blame Jack Ma.. I don’t blame CCP… I don’t blame JPM analysts.. I learn from the whole episode and I hope to become a stronger person…

I am just 14 years into my investing journey… I am only near 40 years old and may have 40 more years ahead as an investor… this is just the early stages of me being an investor… haha

Its okay to make mistakes! Its okay to lose money!

A lot of TSLA investors… you are the young folks who are just 1 or 2 years into the stock market… you are very young… you have a long road ahead, stay strong and you will eventually become a successful investor in the future…10 or 20 years later you may too find financial freedom… I wish u folks all the best!

Good Luck and Take Care

ML