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Another big name in the market has decided to make its stock more accessible to the everyday investor.
And that big name is none other than Tesla Inc. (NASDAQ: TSLA).
Tesla has indeed had an impressive run. Despite many analysts calling for its downfall, the electric car stock has continued to thrive, hit new all-time highs, and continues to climb daily. In fact, shares have more than quadrupled since March – closing above $1,600 at one point.
The company has been a favorite stock for day traders as well as for some retail traders for a while. For instance, just last month, Robinhood disclosed that almost 40,000 active account holders had added shares of the carmaker in a four-hour time frame.
And it's not just Tesla that's enjoying this surge. Investors are getting more and more interested in the electric car industry. But Tesla is the only company in the sector that's on the S&P 500's radar, with many hoping it'll soon be added to the coveted list. If this happens, it'll make Tesla a "must buy" for mutual and exchange-traded funds that track the index.
So here's how we can get in on the moneymaking fun – and only pay one-fifth of Tesla's cost today…
TSLA's 5-for-1 Deal: Where's the Money?
With Tesla's high price tag, it can almost seem unreachable – especially seeing how it continues to climb daily. The company, however, made a recent announcement, and the goal is to make the stock more accessible to the everyday investor.
Following the news that it had officially become the world's most valuable automaker, Tesla revealed that it would be doing a 5-for-1 split.
What this means is that on Aug. 21, each stockholder will receive a dividend of four additional shares of stock for each one they own. Following the announcement, TSLA stock surged 9.3% as investors rushed to get a piece of the electric car maker ahead of the split.
I think splitting stock is the best thing TSLA could have done.
Truthfully, every single stock worth over $400 should do a stock split to get their price under $100. Because while the market capitalization is the same, retail investors see a smaller price tag, therefore making it possible for them to own a piece of the company.
And it's been proven that in many cases, the stock moves higher after a stock split because the cheaper price tag naturally attracts an influx of interest.
So, Tesla, I tip my hat to you.
With that said, I have always considered the world's top electric car maker as a buy. And with this announcement, I believe we're just going to see more and more investors running to get their piece of the pie. So, I'm giving Tesla the green light for purchase.
This is a stock you simply don't want to miss.
Before You Go…
I wanted to give you a quick update about the incredible month my Project 303 readers and I are having…
Out of our seven closed positions so far, five were winners – and those winners averaged a return of over 70%!
Day after day, the picks I mentioned above are looking more and more like our next big profit opportunities… and there's still time for you to get in. Click here now…
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About the Author
Andrew Keene, editor of the 1450 Club, Super Options, and Project 303 at Money Map Press, is a globally known trader and a renowned expert on all things options.
Do I have to open a options account in order to use your system. I opened a brokerage account and I'm looking forward to making some trades but can I do that with just a brokerage account?
Mylinda,
You absolutely can trade options on a traditional brokerage account, though most brokers will require you to have options clearance.
I would recommend simply calling in to your broker and asking their representative if you have options clearance on your account.
If not, go ahead and apply!
Best of luck,
–Money Morning Team Member
project 303 is that simple options. call and puts? can it be left 24hrs. i can only do those, and they need to be left over 24hrs.
Limor,
Thank you for reaching out!
To answer your question, most options trades recommended by Andrew through his premium trading services will not be day trades, as most retail traders have a limit on how many day trades are allowed to be executed within a given time frame.
The only circumstances where you would expect to see a same-day exit recommendation would be in the case of a trade moving a bit faster than Andrew anticipated – which in this marker isn't entirely uncommon.
So you may want to check in with your broker to ensure you're allowed a certain number of day trades per quarter, so that you can join in on all of profits being had!
(Here's a tip: even if you aren't able to make a timely exit, you can always place a limit order to exit, ensuring you're still able to lock down the target profit of a trade recommendation, even after waiting the necessary amount of time.)
Best of luck,
–Money Morning Team Member