Transcription
I just put $1 million into Tesla stock very recently, and as you can see, I'm up $116,000 in the past few days. I just added more to my position. In this video, I'm going to explain to you why I'm buying Tesla stock, what I'm doing with Tesla stock, and an option trade that's going to make you a lot of money. So let's jump into the video. I respect your time, so here's the main explanation.
Now, guys, I also want to tell you one thing about analysts, and I'll tell you the dark truth here, okay? Because I worked on Wall Street, I've seen how analysts work, and I have a degree in this stuff. To be honest, analysts are likely to revise Tesla's price target up, but not because the stock's actually good. But it's still a good reason. The reason why they actually will revise their price target up is because as Tesla surges, these analysts feel stupid; they feel dumb, right? Because as Tesla goes up and they have a price target of $150, they have to raise their price target, which creates kind of like that spiraling effect, okay? As analysts are like, "Wait, I'm way too far from Tesla; I look stupid. Let me raise my price target up." More analysts copy each other; it's a copying game, guys. You think these analysts are not looking at each other? They're just copying each other.
All right, so when the company surges in value like Tesla has, and it reflects in the company's growth, the analysts are like, "Well, duh, this was an obvious play." So they start raising their price targets, and that's actually going to help Tesla's price per share maintain its value. I have $1 million in Tesla stock; I have 3,000 shares, as you can see here. I bought this just a few days ago, and I made a video on it. But at the same time, I also have more shares in Tesla in my other portfolio, my main portfolio that you guys usually see, and I'm up $153,000 on Tesla stock here with 1,000 shares. So it's safe to say that I have a ton of Tesla stock. I'm either crazy, a genius, or somewhere in between.
Let me explain. The reason why I put $1 million more into Tesla stock is that it is clear to me that this stock is going to $500 per share, and it will hit $500 per share in 2025. I have high confidence in that, and I'm sure of this because of Elon Musk's announcement of the Robo Taxi event, the tech bull market, and the tech bull market that will increase demand for Tesla stock. Recent analyst upgrades are switching from bearish to bullish, and my new reason: Bank of America Securities has a bullish outlook after a Giga Austin factory visit. So that's your answer; those are my reasons why Tesla is going to $500 per share.
So if you need a balance, you don't have that much time; I totally understand. Now, for you guys that do have some time, let me give you a full explanation, and I'm going to go over an option trade as well. Now, I can't believe what happened with Bank of America, but also a big analyst on Wall Street turned bullish. Let me give you some context. If you recall, just four days ago, I said this, guys: I said that analysts raise price targets, and it creates a whole spiraling effect, right? There's one analyst that says, "Hey, I think this stock's worth a little bit more," and then another analyst says, "Oh, I see this analyst going up," and they follow each other. They're doing like copying, and this is exactly what has happened in just the past few days.
In the past few days, when I bought Tesla to begin with and I started that $1 million position, I had $1.3 million in it. I had $1 million and then $300,000. Now, basically, I had $1.5 million. That's because of analysts upgrading, as well as other reasons I'm going to get into in this video. Let me prove that analysts are completely switching 180°. They see Tesla going up; they're completely changing their minds. One of those analysts is Roth Capital's Craig Irvin. This guy, for years and years, actually said that Tesla has no technological advancement compared to Toyota. What a crazy statement! This guy literally said that Toyota and Tesla are the same thing; they don't have a technology advantage, which is absolutely absurd. Technology is obviously the biggest thing that Tesla has. They have the biggest advantage with data, with technology, with AI. You think Elon Musk isn't better than Toyota? You've got to be kidding me; absolutely, it's a joke.
So this guy finally realized; he's finally jumped off of his Looney Tunes bandwagon, and he finally switched 180°, which I think is also a big contributor to why the stock has popped a few percentage points. Because as each analyst jumps ship from their bearish case because they realize they're stupid and they jump onto the bull case, that actually creates a spiral effect, as I mentioned. Now, we also know from other analysts like Dan Ives. He mentioned how regulations are about to get a lot better for Tesla, and with Elon Musk in the White House essentially, Tesla is going to do very well in 2025 and 2026. Dan Ives had that famous clip where he said, "This market is going to be fire," and I'm in 100% belief, and I'm on the same page that with the market right now going up, we see a really, really bullish trend that this is just going to continue. We are going to see a continuation because there's a lot of money on the sidelines that's being basically plowed into the market. I don't know how to say a better word for it, but plowed into the market. A lot of people have a lot of stockpiled cash on the sides—$7 trillion to be exact, right? There's some debate on that; it could be $8 trillion, and that is going into the market right now. A lot of it is going into the mega-cap stocks, especially the high-innovation stocks and the high-momentum stocks, which I've been telling you guys: Palantir, Tesla, and Nvidia. These are the powerful stocks that you have to be in right now.
And I'm not just telling you guys like the other YouTubers, right? I know which channels you guys are watching. These YouTubers show you Excel sheets; they have coaching programs, but none of them actually show you the real results and what they're actually doing—the transparency—which is why I make sure to show you everything that I do. I make big bold bets because I have high confidence. I've been doing this for 10 years, and I've worked at Goldman Sachs. I'm trying to put more money in your guys' pockets. I'm telling you this is the opportunity. I invested $1 million, and I'm already seeing a payoff. I have more than a million in two different portfolios; I showed you both positions. So for me, this is a no-brainer play.
In my own analysis, guys, let me tell you, in my own analysis, I don't follow others. So just because I'm looking at Craig Irvin, I'm looking at Dan Ives, and I'm looking at other analysts from Bank of America, which I'm about to get into, it doesn't mean that I'm not doing my own analysis. At the end of the day, I trust myself more than I trust anybody else. I'm only looking at these clips, and I'm showing you guys a clip. I'm going to show you one more real fast for 40 seconds. I'm only showing this to support my thesis, as well as when I'm looking at other research online. It is really important because there's something called social velocity, guys. Social velocity is essentially when other retail investors are looking at news, and they're piling into the company because of the news going on. News is a very big important piece of the stock market because it's a psychological game, and volume does drive price. Okay, listen, volume drives price. So when there's high volume and the stock is going up, that means kind of like a herd of sheep; everyone is running in one direction. That's actually a good thing, and you want to hop on that trend. That's how you squeeze out an extra 10, 15, 20% in this bull market. If you can make 20% in the next three months, what would that be for your portfolio? If you have six figures, that's like multiple five figures—that's $20K, $50K. There's a lot of money to be made right now.
Here's also my opinion. I'm looking at my research right here. We have two back-to-back 20% years, and investors are wondering how much more can the stock market go up? Are we at the peak? Is it like going to be game over? Are we going to get a big pullback? Are we going to get a crash? I'm afraid. You know, I get a lot of my students saying, "I'm afraid right now; what do I do?" I have some other students that are not afraid at all. They're saying, "We're going to go up 50%, 100% more." I think that's too extreme, okay? So what's the actual answer? Well, the actual answer is it doesn't really matter if we get more good news on Tesla and the company keeps delivering on revenue and high-performance earnings on the bottom end, and the revenue actually reaches the bottom end. We see more news coming from Robo Vans, Robo taxis, the robots that Elon Musk has going on. It doesn't really matter even if we're at a market peak because Tesla itself is going to do really well, okay? Tesla itself is going to grow, and even if the stock market pulls back just a little bit, we're still going to see a really good performance on Tesla on a relative scale. But I'm telling you, on an absolute scale, this company is going to $500 per share in 2025, and that's why I put a large chunk of my own net worth and my own wealth on this company as a big bet.
Here's another really important reason. I hope that you don't mind that I have multiple reasons supporting my claim here. Honestly, I'm not a financial adviser or anything like that; I'm just showing you what I'm doing. I'm being transparent because I've gained a lot of wealth, and I want to share it with you. I want you to understand why I'm doing certain things. I want you to copy me; I want you to get the same results. I want you to get richer. So look, Elon Musk's announcement of the Robo taxi event was very good news, and the economics are absolutely insane. It is so compelling; the economics are so strong, and I'm convinced that Tesla is going to be over $2 trillion in market cap in 2025 because the economics make sense. You should be buying a Tesla Robo taxi because it's way cheaper than mass transit. It's way, way cheaper. And you know what Elon said? Honestly, it actually blew my mind. So I want you to watch this really quick 40 seconds about Elon Musk and what he said about the economics and the economies of scale that Tesla is going to achieve with the Robo taxis.
"I think the cost of autonomous transport will be so low that you can think of it like individualized mass transit. The average cost of a bus per mile for a city—not the ticket price, because that is idiosyncratic—but the average price is about a dollar a mile, whereas the cost of a cyber cab, we think probably over time from the operating cost, is probably going to be around 20 cents a mile. And price, including taxes and everything else, probably ends up being 30 or 40 cents a mile. Can we buy one? So yes, and you will be able to buy one cheaper and better than mass transit. Are you kidding me? Cheaper and better? This is going to be a no-brainer for Tesla. This is going to be a no-brainer for the entire population of folks because why would you take a bus? Why would you take a taxi with an actual human when Elon just said that it's cheaper to go into a Robo taxi, and it's more luxurious? So when it comes to mass transit, there's going to be a revolution, and that's all going to go to Tesla's pockets. That's a big reason why this stock is going to $500 per share. That's a big reason why I put a million dollars into it, and I also have another half a million dollars in it. That's why analysts are raising their price targets as well. You know, they're copying each other; it's very obvious. You know, they're looking at one analyst, and they're like, "Oh my goodness, I'm dumb for not copying that analyst." And as every analyst finally starts to reorient their price target, we've seen guys going from $150 to $500 per share. They're making big jumps. I'll show you an example in just a moment, but analysts are making a big jump in their price target, and this is actually giving confidence to the market. And again, confidence is where it's at, guys. The retail investors, as they gain confidence, they push up the stock. But also, don't get me wrong; there's a lot of smart money in Tesla as well. We got ETFs in Tesla; obviously, they have to be in Tesla, right? The S&P 500 obviously has to put a certain amount in Tesla. We have institutional investors; we have a lot of smart money guys in Tesla, and I'm following this trend very closely because if the smart money is not in there, I don't want to be with the dumb money. I'm telling you, I do not want to be with the retail investors that don't know what they're doing. I'm following the trend, but I'm also following where the smart money is going.
So look, here's a little bit more research on the Bank of America case that I mentioned in the beginning. After visiting the Gigafactory in Austin, Bank of America said this: "The trip gave us increased confidence that Tesla is well positioned to grow in 2025 and beyond with its core EV business and launch of its Robo taxi offering and longer term from its investments in Optimus." This was all said by lead analyst John Murphy, and he wrote this in a note to investors. That is a lot of confidence for the market because this guy does have a good reputation. Murphy reiterated that his buy rating for Tesla, and he upped his price target to $400 per share from $350. Not a huge bump, but it is a significant bump from $350 to $400, giving the market some confidence.
Now, I've been making money hand over fist, guys—bicep over tricep—and that's because I was a little bit early in this. I wasn't super early in Tesla, but you don't have to be early. I'm trying to tell you guys, every video I'm making nowadays, it's been months we've been printing money—like 10, 15, 20% per month in returns, and I'm not even early. I'm just following the trend because you can buy an expensive stock, and as it goes higher, as the momentum goes up, you can make a ton of money. You can make 15, 20%, and that's also because of where the market's at right now. You know, if I look at the environment, it's a very good environment, and it's conducive to high returns. That's the most important thing. It's not even picking the best stocks per se. Like Tesla's a great stock; I picked Nvidia early; I picked Palantir for you guys. But when it comes to the actual market itself, I'm just taking a look at what's going on, and I'm taking a look at the dovish Fed. That's really good. As interest rates go down, tech companies are more valuable, and tech companies are going to go up. I'm also taking a look at Trump in the White House; that's good because Republicans, they make a bigger office; they print money, and all that high inflation does mean that that money goes into the stock market at the end of the day. Because no matter how much money you print, it still goes into the rich people's pockets, and the rich people put their money in the stock market. It's as simple as that, guys. It's super simple. All right, the money is going to go into the stock market; stocks are going to go up, and we're going to beat inflation in the stock market. It's just pretty much the laws of physics, the laws of finance, okay? The laws of money.
All right, now look, also Elon Musk has a really tight relationship with Trump. They're buddy-buddy right now; they became really good friends, and that is not for no reason. I'm telling you, these rich people, they don't do things for no reason. Everyone has a motive; everyone wants to make money, okay? So Trump, he's very focused on the stock market; that's actually his metric, guys. His actual metric is the stock market because when you take a look at a presidency's success, one big thing that you want to mention is how well you did under your term with the stock market, okay? So Trump said that a lot in his campaign. Now look, Tesla's market cap went up $330 billion following Donald Trump's election in the U.S., right? So with media and analysts, they speculated that the implications for this kind of partnership—it kind of looks like a partnership, guys. Have you noticed that Elon Musk and Donald Trump kind of look like a partnership? With these guys in the White House and having influence, with Elon having influence, I'm telling you it's going to be big things for Tesla. It's going to be really big things, and that's why I'm confident to put a lot of money into this. I'm telling you, a million, even though I have a big-sized portfolio, guys, it's no joke. Every decision I make, by the way, I'm always being transparent about it. And if you want to see the live trade, by the way, if you want to see me do it live as I make a trade, that's actually in my Discord community. I have Monday and Wednesday sessions where I show all my students everything live.
Okay, so look, I want to wrap this up. I want to give you a couple more things. I want to show you a leap option play as well. I'm giving you guys a lot of insights in this video. I'm going quick, so make sure that you're not missing out. Make sure you're taking notes because I'm telling you I'm about to put a lot of money in your pocket—about to flood your pockets with money. I've been doing that, but I want to do some more of it, right? I want to bless you with money because money freedom—that's it. I don't have a fancy lifestyle; I don't do anything crazy. I just believe in freedom and having time for yourself—time freedom, okay? Not having to work. I have so many doctors, lawyers, engineers; you guys are high-paid professions, but you don't have freedom. You're going to be working for a long time. So if you want to break through from that, you got to invest; you got to invest properly, okay? That's what it's all about.
Look, to wrap up the Trump and the Elon Musk relationship here, what you should be looking out for to make a lot of money is this: as their relationship grows, Tesla's going to get more favorable policies on manufacturing, on innovation, on economic growth. They're going to get more favorable relations on all of those fronts. That's going to push Tesla's revenue higher, or that's going to make Tesla become a higher perceived value. Guys, don't forget this: the market isn't about how much a stock always makes; it's about how it's perceived by investors—all about expectations. That's why I'm giving you this research, because when you understand what the expectations are, you have formulated a proper opinion on the stock, and you believe that it's worth more than what people expect. That delta, that difference, okay? That's where the money is made. So policies focused on reducing energy costs, deregulation, tax incentives, the corporate tax reduction—this is all going to benefit Tesla. All of these incentives are going to make more money for Tesla; it's as simple as that.
All right, all right, so there we go. I don't want to spend any more of your time explaining why Tesla. This video will serve for why I invested over a million—$1.5 million now—into Tesla. Now let's talk about a leap option play, okay? Because listen, leap options are the hottest thing that you should be doing in this market. Whether you have a small, a medium, or a large-sized portfolio, I got millionaires that are making a lot of money on leaps. I have portfolios that have $100K, and they turned $100K into $200K in this market right now. In fact, it's kind of crazy; I'm getting so many emails, I'm getting so many Discord students, my one-on-one students—we're just celebrating right now. We're harvesting all these fruits and veggies right now, and I tell them the bad times will come. We have to make as much money hand over fist right now. This is the time; there's a lot of urgency because when you can squeeze out a lot of money at the end of the bull market, I'm telling you that's how in 2021 I turned $100K into $700K. That's how this year I went from like under $3 million to over $4 million, okay? We have made leaps and bounds in terms of results. Now, when the tough times come, when we have some potential negative months, I'm going to hold on strong, and I'm going to try to outperform the market, which I've been doing for almost, you know, seven out of my ten years. My first three years, I didn't do so well because, you know, I wasn't as experienced. These past seven years, I beat the market very well. That's because during the good times, I'm reaping all these fruits and veggies, and I'm freezing them for the winter, all right? So you better do the same right now.
Look, here's what a leap option is, all right? I want to cover the leap option and the benefits. I'm looking at a leap option at $330 at the $330 strike for Tesla. I've already mentioned that in another video. I'm going to reanalyze right now, and I'm going to show you a play that I'm going to do, okay? So I'm going to go to trade Tesla options right; you can see on my screen right now, and I'm actually going to go ahead and buy a call option for September. Now look, I'm going to analyze the $330. I'm going to tell you why the $330 is good, but I'm also going to show you a little bit of variation right now.
All right, so here's a $330 call option. It's actually perfectly ripe; it's at the 70 Delta, right? That's really good. However, because Tesla continues to go up, you know, if I were to open up a new position, I would actually go for about a $350 right now. Now, the $350 has a little bit lower Delta, all right? It's not actually a huge difference, but it kind of is. Look, $350 here is worth $9,000, whereas the $330 here is worth $10,000. So it's $1,000 cheaper to go for $350, and to be honest, this makes more sense because a Delta of 66 still gives you a lot of upside.
Let me explain real quick a little bit more about leap options. Leap options are basically kind of like owning stock and also kind of like a call option at the same time, right? So a leap option is just a call option that goes out a little bit further in dates, okay? It could be 9 months; it could be a year; it could be 2 years, etc. I consider 9 months a leap option. I know that's not a textbook definition, but that's Henry's definition, all right? Because it's long enough for me, right? So leaps allow investors to gain significant exposure to the underlying stock with less capital than buying stock outright. Like, why would you buy Tesla at $371 per share and put in $37,000 when you can buy and basically own 100 shares with just $9,000? So you're putting up 13% of the capital. I mean, that makes a lot of sense to me, and the risks are also really low, all right? Let me explain. Look, you can put in 1/3 of the capital, so that's already one-third of the risk, okay? The sensitivity of this option is 66 Delta, right? As you can see, the 66 Delta means that when the stock goes up $10, this option will go up about $660, all right? So that's actually really powerful because if the stock goes up by $10, right? $10 on $371 is just like a 3% return. So as a stockholder, you're making about 3%, but as a leap option holder, right, that 3% is almost 10%, right? Because you're making $7 on $89; that's almost a 10% return. So you get a huge return, and you get a leverage factor, okay? Leverage is where it's at. If you want to make money, you need leverage.
Now, I don't believe in borrowing money; I don't really believe in paying interest. Interest, but with this leap option, you get strong leverage. If you make good decisions and you leverage them, that's where it's at. That's how you make a ton of money, and you have that long-term perspective. I'm not a fan, guys, of looking at these short-term plays, you know, one week out, two weeks out. I'm looking at leap options because if I get in now and I have the right opinion, the right perspective, this option is going to increase 2x, 3x in the next 9 months, all right? So this strategy is ideal for those who are bullish over the long term and expect the stock to appreciate significantly, which, you know, I wouldn't say $500 is extreme appreciation, but if we go from Tesla hitting $500 or even $450, okay, that's going to be easy double on your money on the leap option. So you can double your wealth in a single year.
Now, obviously, pay attention to risk management; pay attention to position sizing. It's going to be too long for me to cover in this video. I covered this in my one-on-one coaching, and I go over your risk tolerance, and I work with you hands-on. If you're interested, it's always the first link in the description, right? We still have actually eight spots. We had 15; we now have eight. We're getting a little bit busy, but I love what I do, all right? I love what I do, and I feel super blessed when I make other people money. You know, for me, I just feel blessed doing that.
When I look at leap options, I'm looking at risk management, and look, your maximum loss is limited to the premium that you pay on the leap. That's all you can lose; you can't lose more than what you pay. So this Tesla example, you know, the $350 that I'm recommending now, I recommended the $330, by the way. When I recommended the $330, it was like around $5K or so. Right now, it's at $10K. I've already doubled the—I've already doubled $330. It's been a couple of weeks on that; that's actually a 2x return. Now, obviously, I only put in 5% on that position, right? On a leap option, I didn't actually even put in on a leap option because I have a lot of shares, guys, you know? But I'm recommending leaps to my community so they have 2x on their 5% position. I said 5% on the $330, so you know, 5% on the $330, you double, that's a 5% return just from 5% of your portfolio. You've made 5% in your overall portfolio; that's crazy, right? How much money there is right now.
So I was selling a lawyer, a student of mine, then he had a lot of money in leaps, right? And I was saying, "Listen, he had a lot of leaps on a bunch of safe stocks." I said, "Now is not the time; now is the time to have leaps on Tesla, on Nvidia." And when we made that shift, he went from making like 3-4% a month, which is great—nothing wrong with that. I'm a big fan of 3-4% a month returns in regular times, but we're not in regular times right now. Now is the time where we got to make 10, 15, 20%. So we shifted his strategy; this was like 3-4 weeks ago, and it's been phenomenal. We've had, instead of 3-4%, we've had like literally 15%. So it's been a really huge difference.
So I'm going to keep posting videos for you guys. I want you guys to make a lot of money, and if you have six figures and you want to scale to seven figures, I'm always open for some coaching. I will spend my time; I have limited time, but hey, you know, I'm in Dubai, but I still do coaching sessions. See, I like what I do, so if you want to level up, feel free to hit that first link in the description. I'd be more than happy to coach you if you have at least $50K. If you don't, you know, just keep watching these videos. I'm going to keep giving you guys free tips and everything that I know. That's what it's about. We're the number one options channel in the world, and we're growing our community here, our family here. So make sure that you are subscribed; I would really appreciate you. I'm going to continue to be 100% transparent, authentic to what I actually believe makes money. I'm not going to follow the hype; I'm going to give you the actual truth, and I'm going to keep giving you guys tips. I can't give all the tips on YouTube; I got to save some stuff for my Discord, my one-on-one students, but I'm going to make sure that I have plenty of trades that you guys here can make money as well. All you got to do is subscribe, keep watching these videos, keep leveling up, invest safe, and yeah, create that freedom for yourself. I want you to also just get to six figures, get to seven figures, heck, get to eight figures. Don't sell yourself short; make things happen. All right, I'll see you guys in the next video. Have a good one; stay blessed.