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Comment by resolaibohp | Hacker News Reader

If you really believe in Tesla to bet big on them you do not need 100k. You can buy 4 $275.00 call contracts for approx 26k that expire in 2020. This would be equivalent to ~$110k worth of tesla stock. And if you are really a believer you can just pick up a bunch of way out of the money contracts making the initial cash requirements even lower.

But this is exactly why TSLA is worth so much right now as so many people think the same way as you. They all want to bet big on Tesla and Elon. It is the most interesting stock to watch as it hemorrhages money and just keeps going up and up.

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I don't own any stocks/secruities directly other than 401k, can you explain a little more on the call contracts and which broker do you use?

PS: the $100k reference I had there was meant for the purchase of a mid-range configuration Model S, not TSLA stock.

I think he is teasing you-before researching this I didn't think a reputable broker would sell a retail investor 26k of options. But apparently they do...who knows why.

If I were you I would definitely not actually buy anything he mentions. He is making fun of your non-quantitative beliefs by urging you to lose money since like...these options contract price risk into them and discount future returns. Moreover you are ignoring the substance of the comment-which is that tesla is overvalued (because of the actions of retail investors buying the equity itself because they think elon is the lovechild of jesus and steve jobs) but the options market is probably a better discriminator of the future value of tesla since its more institutional.

Looking at this comment I was pretty sure he was a financial person and he is (found a comment for his fintech company). In effect he is making fun of you for thinking with your gut instead of trying to make a more quantitative evaluation.

To be clear I was not trying to make fun of the OP. I frequently hear people say that they would invest if they had some certain amount of money. I always like to point out that there are plenty of ways to invest without huge amounts of capital, however with much more risk. It is kind of a temperature gauge to see how serious they are about their words.

Let me reiterate as well, the $100k price tag is for purchasing a mid spec Tesla Model S or a base model Model X with some options or 2 Model 3s(if they could deliver in time before going under), not investing on stocks/securities

just an fyi an option isnt a stock or a security. it is a contract

Don't invest into option contracts if you are not already familiar with them. They come with much more risk. But most all brokers offer them, even robinhood.

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