Tesla overvalued? Sell/Hedge

Who else owns Tesla? I’ve held from $201 so have made really nice gains. My concern is that the company is now seriously overbought, with a larger market cap than GM, Ford and Fiat-Chrysler. I guess this is the market pricing in the belief that Telsla will be a bigger company.

I was thinking of selling half of my position to take some of those gains. But I really don’t like selling. I was thinking I could hedge and sell with a CFD. But I don’t really like that idea because markets are crazy and we could see $500-$600 and I would get margin called and be screwed. So then I thought about options and buying a put with a long expiry date. Trouble is I don’t know any UK brokers that deals in stock options. Most of the brokers seem to only deal in indicies, commodities and forex. If anyone has bought and sold stock options and could give some pointers that would be great.

Please feel free to critique my plan, give advise and info on any good options brokers. Cheers guys!

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Tesla is extremely overpriced, period.

How long it will take for a correction?
It’s literally impossible to know.


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This really depends on your risk tolerance. I would definitely sell tesla, because it’s above my risk tolerance.

As said, we don’t know when we will see a price correction, could be this month or it could be in 6 months, but you need to understand that you’re dealing with a risky stock.

I understand that. This is why i’m looking for a suitable instrument to hedge my position. Just to be clear guys, I’m not asking when you think there will be a correction. I understand that nobody knows and I wouldn’t believe you if you said you did.

I’m asking about whether hedging through an options contract is a good idea and where to buy them. Europe doesn’t seem to like options as much as the US.

I’ve been holding TSLA stock for about two years. It’s definitely been a rollercoaster ride but everything’s finally paying off & I wouldn’t count on the party ending anytime soon.

Hedging isn’t generally a bad idea but I’m surprised it’s something you’re even considering if you’re a long term investor. I feel like hedging my positions via CFDs or options would be a wildly speculative decision if I’m in it for the long run.

It all dependals on your goal. As long term investor , I dont prefer highly speculative/volatile stocks, but if you bought it, it means you have gut for the risk. Thus it boils down if it is short term/long term strategy.

If i had bought stock, then it would be hold for sure. There is also, buy low/ sell high, so you could sell half position, wait for dip/correction to fullfil position again rinse/repeat.

What was your original strategy when you decided to buy TSLA?

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