Today, I want to highlight the danger of buying long-dated calls. Specifically, on stocks with high implied volatility (IV). Take Tesla for example. 6 months ago, Tesla was skyrocketing upwards. It was almost a month after the stock split, and Tesla was unstoppable. From mid-March 2020 through September, Tesla was up about 300%.
The Danger of Buying Long-Dated Calls
The Danger of Buying Long-Dated Calls
The Danger of Buying Long-Dated Calls
Today, I want to highlight the danger of buying long-dated calls. Specifically, on stocks with high implied volatility (IV). Take Tesla for example. 6 months ago, Tesla was skyrocketing upwards. It was almost a month after the stock split, and Tesla was unstoppable. From mid-March 2020 through September, Tesla was up about 300%.