MM85 - SpaceX Case Study

Today I want to talk about SpaceX , and how I am positioning for the move ahead. This is not financial advice. I am not a CPA and I am not a trading advisor.

Today I heard some really large price targets on SpaceX from Invest Answers, up near and above 500 dollars a share. That leads me to an important conversation. If you do not own enough space yet, and you are sitting there waiting and telling yourself, well, maybe it pulls back to 130, or maybe 120, I call that splitting hairs. You are hunting for the perfect entry and you risk not getting in at all on a stock you believe is going much higher. Now, this is not financial advice, and I always want you to remember it could go to zero, something could always go wrong, and you have to plan for that in your portfolio too.

But here is the honest question. If the endgame two years out is 500 dollars, does it really matter whether your entry is 142 or 150 or 161? Probably not. So let me walk you through two ways to position, side by side, and you can decide which one fits you. And of course, you can always just buy stock.

I do own SpaceX stock. I have been buying shares every step of the way whenever the opportunity presents itself. Why do I like owning the stock? Because down the road there will come a time when I want to sell short term calls against my LEAPS, and if the trade moves against me, I want to be able to kill a small monster and owning shares helps me do that efficiently.