Tout va bien
Bruce Burnworth used to clip coupons and look for deals before his investment in Tesla Inc. made him a millionaire.
Mr. Burnworth, a civil engineer in Incline Village, Nev., who is nearing retirement age, is using all of those strategies after turning a roughly $23,000 options gamble on Tesla last year into a nearly $2 million windfall. His growing Tesla stake had enabled him to borrow against his position to convert Tesla options into shares that have soared sevenfold this year. He says he also helped his daughter buy a home and purchased a Tesla sport-utility vehicle for another family member.
"Before, I wasn't doing particularly well financially, Now, I'm well beyond where I wanted to be for retirement," said Mr. Burnworth, who added that he also sold his own home and used some of the proceeds to buy more Tesla options.
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Mary Roberts made her first big investment last year, using some spare cash and a leftover retirement account from a previous job to buy up shares of Tesla. Like Mr. Burnworth, her investment portfolio swelled in value this year as the electric-car maker's stock ran up, leading her to dabble in options trading for the first time using margin debt.
She says she doesn't think she will see another year of gains quite like 2020 soon. But she has no plans to sell any of her Tesla stock either and is open to the idea of borrowing more against her portfolio.
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"If Musk can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months."