TSLA PE ratio is 95.87 as of market close today. AAPL is still 22.38. GME is still 33x the price it was in March 2020.
I'd like to just point out that for all of the BTD and "this must be the bottom" talk, QT has not started. Like at all. Starting on June 1st there will be $30 billion a month in liquidity sucked out of the system, which by the way is the fastest rate the Fed has ever started tightening and was also the monthly amount that caused the repo market to blow out last time around. I'm not saying it will immediately cause things to break, I'm just saying it's worth keeping in mind that rate hikes aren't the only thing the Fed is doing.
Related to the above, I've put some skin in the game with the following trades:
-Bought TSLA 600 Put Jul 15 ($3500)
-Bought AAPL 120 Put Jul 15 ($500)
-Bought GME 90 Put May 27 ($500)
The IVOL looked attractive on TSLA and I was able to get my order filled when TSLA popped positive today. I will most likely sell my position 30 days prior to expiration and take profits, or sometime after the next Fed meeting, rather than try to hold longer for a home run. I believe the electric vehicle trend is for real, I just don't think the markets current valuation of TSLA will hold up when market sentiment gets ugly. Retail still thinks this is a good time to buy the dip and TSLA has been such a winner since the COVID crash so most are just holding on to TSLA because it's made them a lot of money so far. They will panic sell when things get ugly just like in every other crash in history.
Pretty much the same story with AAPL. I don't see another WFH trend on the horizon to boost their sales and skipping out on a new macbook/iPhone will be one of the first thing consumers do if budgets get tight. I know Buffett still owns significant long positions. Burry owns significant short positions. I don't doubt that AAPL has a strong business model and will survive through a downturn, I just think their current valuation is still elevated (again look at CSCO and AMD during/after the Dot Com Bust).
I feel the least conviction about GME because it's just behaved so weirdly in the past. I saw the pop today and took it as an opportunity to open something short term. IVOL was elevated for longer term puts so it wasn't worth opening more positions at the moment.
I don't anticipate macro conditions looking any better primarily due to QT and we may get another leg lower when the realization sets in that the Fed will keep hiking to break inflation (Powell said that exact thing in his last public appearance). We are still months away from inflation slowing to a point where the Fed will be comfortably changing their tune because of the lag to the economic data that the Fed looks at.