Paul Nolte never thought of including stocks like Tesla in his client portfolio at Kingsview Management, a Chicago-based consulting firm. The stock is too unstable. But when Tesla’s share price has doubled in two months, it may be possible to add a put option to the stock in a personal account.
The 34-year-old money manager believes Tesla’s share price support will disappear and plummet. So he threw out a put option worth $10,000 and waited for the moment.
“I was playing with fire,” Nolte said. “I’d better go to the casino and paint it black. Ten thousand dollars will soon be wiped out. “
Throughout the week, Tesla has been doing this, luring and mocking professionals, making brokerage phone lines ring nonstop, making them anxious to watch Tesla’s stock price move.
Tesla’s share price soared from $650 to $950 on Monday and Tuesday, shorting Chris Brown of Tesla barely slept.
After the stock continued to break through new highs, he considered buying the stock and sold it last Monday, but eventually decided to give up.
“When things go so big and organized, you just have to sit and watch,” Brown, a managing member at Aristidecapital Intodo, Ohio, said by phone, describing his actions Monday. “I keep staring at my computer all day. “
Few are closer to the centre of the storm than Dan Ives, wedbush’s managing director. As Tesla’s share price tops $700, $800 and $900 in two days, his once bullish share price target has also been broken.
The stock’s 20-day volatility is almost the second-highest market capitalisation in the Nasdaq 100. twice as fast as the latter this week.
Since Monday, 750,000 deals have been executed, seven times as many as Boeing.
“We’re talking about a historic stock market swing over the last 10 years, ” Mr Ives said. It caught people on Wall Street off guard, and it’s rare in a market where information is known in two seconds. This is Stephen King’s film. “
Brian Frank, president of Frank Capital Partners, an investment firm in Biscayne Bay, Florida, has a different view. He sees Tesla as a harbinger of a belated doom and the beginning of the end of the buy-to-let philosophy. As a value investor, this philosophy makes his life miserable.
Bitcoin is another asset that attracts so many calls, frank said, and perhaps 5 percent of customers have calls about Tesla.
On Wednesday, when Tesla’s share price fell 17 percent, it all stopped.
“It could happen to a company big and so visible to Tesla, and that gives me hope that a bubble does exist.” “This is a company with a market capitalisation of more than $100 billion, and it’s clear that it’s using the old model of the Eiffel Tower, like Bitcoin. The same is true of many other bubbles. “