---
title: "Market with increasing difficulty"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/25978362.md"
description: "Didn't participate in the battle last night. Recently noticed many star stocks are experiencing both long and short squeezes from both mid-term and short-term perspectives. Take Tesla for example - after breaking 360, people thought it would head to 400, but it plunged below 340. When it skyrocketed to 400, everyone expected it to continue squeezing to all-time highs, only to see it pull back again. So what about those who previously bought 450C or 500C expiring end of year? You might say they bought them as lottery tickets - gone is gone. But Tesla's options aren't exactly cheap. Nobody is truly foolish enough with money to remain completely unaffected and not feel regret..."
datetime: "2024-12-10T09:35:38.000Z"
locales:
  - [en](https://longbridge.com/en/topics/25978362.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/25978362.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/25978362.md)
author: "[铁头娃娃](https://longbridge.com/en/profiles/14178546.md)"
---

# Market with increasing difficulty

Didn't participate in the battle last night. Because recently I've noticed many star stocks are experiencing both long and short squeezes whether viewed from mid-term or short-term perspectives. Take TSLA for example - after breaking 360, people thought it would head to 400, but it plunged all the way below 340. Then when it skyrocketed to 400, everyone expected it to continue squeezing to historical highs before it corrected again. So what about those who previously bought end-of-year 450C or 500C options? You might say they bought them as lottery tickets - gone is gone. But Tesla's options aren't exactly cheap. Nobody is truly foolish or rich enough to remain completely unaffected or not feel regret. Therefore, I believe beginners without options fundamentals shouldn't imitate influencers by playing extremely long-dated, far out-of-the-money options - can you withstand such volatility?

As for why I avoided trading yesterday - there's only one reason: Chinese stocks rose, which would inevitably muddy market conditions. Chase the rally in Chinese stocks? Be careful getting your pants pulled down - I'm scared. Even stocks that were originally rallying would face resistance. Holding underlying shares is one thing, but holding options in such conditions is like being an ant on a hot griddle!

Finally, a small opportunity: pay more attention to small-mid cap tech stocks with market caps between $1-5 billion. Recently might be a good time (especially those that have corrected or are in consolidation periods) - perhaps currently excellent choices.

### Related Stocks

- [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md)
- [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md)

## Comments (4)

- **冯先生保佑一路长虹y · 2024-12-10T14:50:40.000Z**: Tesla is so crazy 🤦‍♂️
- **2026学会止盈 · 2024-12-10T11:27:26.000Z**: Those who bought Tesla options at 500, the option prices have already been driven down recently, even becoming negative. Even if they fall back later, you've already made a profit and won't lose money.
  - **铁头娃娃** (2024-12-10T11:59:24.000Z): That's why I said it's not suitable for beginners. Novices haven't mastered this kind of thinking yet - they can't hold their positions. Those market fluctuations would totally wreck naive investors.
  - **2026学会止盈** (2024-12-10T12:10:41.000Z): Newbies will never become pros without practice