Andy Crowder: The S&P 500 is up 24% year-to-date, establishing record highs on almost a daily basis of late. The index has gained 41% in the last two years. And there have been very few hiccups along the way. It has now been 531 market days since a market pullback of 10% or more has occurred.
Is it time to sell a few of these high-flyers?
Well, let’s take a look at one of the biggest bull benefactors and a personal position of mine, Elon Musk’s Tesla Motors Inc (NASDAQ:TSLA).
Back in late December 2012, on a recommendation from a friend, I purchased 100 shares of Tesla for my seven year-old daughter. I NEVER, and I must emphasize NEVER, buy stocks based on the recommendations of others. But my friend is the ultimate perma-bear. He would much rather short a stock than buy one. But, for the first time, at least since I’ve known him, he highly recommended buying a stock. The stock…Tesla.
The timing happened to be just right because I had some capital set aside for my daughter and was searching for a few stocks to invest in. So, I bought a few hundred shares thinking I would hold on to the stock for a few years.
But then the stock started to rise, well, exponentially.
Surprisingly, I was able to hold on to the stock as it continued to gain more and more momentum. As an options trader, the typical holding period is days, sometimes hours, but in this case the stock was purchased as a long-term holding.
But the struggle to not sell the Tesla continued as the stock became more and more overextended. And then a video surfaced back in early October of a Tesla Model S sedan that had burst into flames. Finally, too concerned to ignore the situation, I did what any sound options strategist and savvy investor would do; I added some downside protection.(...)Click here to continue reading the original ETFDailyNews.com article: Tesla Motors Inc (TSLA): How To Protect ProfitsYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)