Blending broad index exposure + Tesla call options to pursue all-in effects on spikes, without going all-in.EXPLORE ETFs
Play around with how a theoretical investment strategy blending TSLA stock, TSLA call options, and a tech index would’ve performed in 2019-2020
Sources: Option Research & Technology Services (ORATS). Calculations by Volt Equity. "Tech index” uses Invesco QQQ ETF as the underlying asset. “Strategy” assumes 15% TSLA stock, 10% TSLA call options, and 75% QQQ investments with rebalancing to the aforementioned ratios every year. The call options assume purchasing split-adjusted calls with 124 strike and 1/15/21 expiry for 2019, and rebalancing to split-adjusted calls with 170 strike on 1/21/22 for 2020 according to the aforementioned ratios. The calls represent strike prices that have the potential to outperform if the stock price moves drastically. The results are hypothetical results and are NOT an indicator of future results and do NOT represent returns that any investor actually attained.
Start with a solid base investment in Tesla stock.Why tesla
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The secret sauce.
Bolster with a tech-focused index for broad diversification and growth potential independent of Tesla.why an index
Small footprint. Massive power.
Slow and steady growth is good, but how your investment strategy handles unexpected spikes (positive and negative) is what distinguishes a great investment strategy from a good one.the power of puts
Behind the complexity of options trading lies a powerful investment weapon. Call options can significantly amplify upward spikes. Put options can take crashes and limit or even reverse their effect.the power of puts
Not many realize that Tesla is the runaway leader in the race to achieve autonomous driving and robotaxis. They're on the cusp of a breakthrough with full self-driving (FSD). This may trigger a chain reaction that can send its stock value spiking.the power of puts
Spikes can happen suddenly. So it's imperative to be able to endure periods of underperformance and hold for the spikes.the power of puts
¹ Depending on the severity of the crash, the effectiveness of the puts can range. Generally speaking, the more severe the crash, the more valuable the puts.
This chart represents Volt's opinion on the relative suitability of investment strategies for various situations and is not financial advice nor a guarantee of future performance.