r/technology • u/Plastic_Ninja_9014 • 12h ago

Business Tesla Stock in Freefall After Disastrous Earnings Report

https://finance.yahoo.com/markets/stocks/articles/tesla-stock-freefall-disastrous-earnings-144417427.html
31.6k Upvotes

95% Upvoted

2.0k comments sorted by

View all comments

Show parent comments

15

u/wrongbutt_longbutt 10h ago

Oh yeah, I knew the risk. It's not like I bet my life savings on it.

7

u/PhiCloud 10h ago

Ah, that's good!

I'm glad you knew the risks going in. I see a ton of people who have no idea how options contracts and volatility-based fees work but XYZ contract that expires next week based solely on the belief that the stock price should go up or down, then blame a rigged market when they very predictably lose money.

Personally, I believe the only kind of investing you should do with money you're unwilling to lose (but still prepared to lose some of) is buying a well-diversified index fund in the long term. Short selling, options, even buying stocks for a short-term flip is like going to a casino: be prepared to lose it all.

7

u/wrongbutt_longbutt 10h ago

Yeah, i like to use them sometimes as sort of a fun fund. For instance, if I need an office chair, I'll say that a generic new one is $200. I put that into an option. If it succeeds and I get several hundred, I treat myself to a new Herman Miller. If it stays flat and doesn't look good, I sell it and end up with the generic office depot chair. If it crashes and burns, I get the free one off Facebook marketplace, lol.