If you are an ordinary retail investor and you make hundreds of millions of dollars day-trading Tesla Inc. options, and you go to a financial adviser and are like “my entire account is hundreds of millions of dollars’ worth of Tesla call options, any advice,” what will the adviser say? I am not a financial adviser and this is not financial advice, but if I was a financial adviser and someone came to me and opened up a duffel bag full of Tesla call options and said “help me figure out what to do with these,” I would yelp in panic, sell everything and put it in Treasury bills. And then when I calmed down a bit I’d figure out a diversified asset allocation plan for the money. And then later I’d work on optimizing taxes, and estate planning, and maybe charitable contributions.
But first things first! Get the heck out of the Tesla options! The point of day-trading the Tesla options was to get you hundreds of millions of dollars, but now you have hundreds of millions of dollars, and you don’t need to day-trade the Tesla options anymore! Oh, what, you want to? You love day-trading Tesla options? Fine fine fine, go ahead, take ten million dollars and use it to day-trade Tesla options, and if you parlay that into hundreds of millions more dollars then that’s gravy. But you are too rich to have 100% of your net worth in Tesla options. The roulette wheel landed on your number 30 times in a row, you gotta stop!
