Traders Playground

Buying Long Term: buying long term long leg of TSLA jan 2016 415 435 cDS with a .25 spread in mind at 1.00 area. We put in the order today but with a spread of .50 - 1.50 between TSLA bid and ask ,it may take days to clear this long leg. A pull back on TSLA might make it easier to get clears. We want to use this weakness on TSLA to position into long term calls well before the release of the model x. Elon Musk said that in 10 years TSLA may have a 700 billion market cap, if this is true then at a current market cap of 25.7 billion TSLA would have to gain 170% of the current value every year so 348.50 points a year. Ofcorse not every year would see return like this, some years more and some years less but the largest moves coming after the gen 3 is released . Now before Elon ever spoke of such a high market cap , we in the playground believed that TSLA long term , in about 10 years could reach a market cap in the high end of 1.3 trillion, since it's tech so with higher production economy's of scale will continue to make the cars cheaper and cheaper to manufacture allowing TSLA to margins high margins even as the cars become the same price or less than combustion based cars that can not drop there manufacturing costs the same way. So well before the big bullish statements from Elon we had a even more bullish picture for TSLA.
Again these orders may not fill for days , but we're placing them now on the TSLA JAN 2016 415 calls.

This trade is one part of a larger strategy so please look back at Previous posts to see the whole picture. AND IF YOU ARE NEW, PAPER TRADE FOR AT LEAST A FEW MONTHS because this is ADVANCED OPTIONS TRADING !!