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I don't feel the need to defend myself. For the record, I was way under before this, and due to sheer luck buying deep a few OTM options (to participate in what people where theorizing to be a short gamma squeeze) I came out on top. For the record though, I almost completely liquidated my Tesla...

I make a plea to those of you who, like me, are retail traders and not pros. I am a very young retail trader from Italy, this is not financial advice, and you have no reason to believe me. I know you are going to question my motives. I implore you to believe me that this is seriously done in...

Ok, I don't even know what kind of words I could use to congratulate you guys today (so just have these).

I'm definitely not an option expert, I'm replying to this only because I haven't seen anyone else replying to you. I could be wrong, but here's my understanding: In general, if there's any amount of time left on your option, it shouldn't make sense to exercise them*! Imagine that by exercising...

Just wanted to say congratulations to all on this last spectacular rally. : D

I'm fairly sure - but again, please correct me if I'm wrong - that what actually makes market makers increase or decrease the move of the market is gamma, not OI in either puts or calls - ie. whether MMs have to hedge puts or calls, the magnitude of their dynamic hedging is about the same in...

Oh, I hate that I missed liftoff this time :/ What a time we live in, being able to just tune in rockets going into space, sending satellites into orbit...

I'm going to take this as a... partial victory, I guess. :p

Sorry, I misread a post I was replying to, and thought we were discussing people buying the $10 calls. You're absolutely right.

For the Nov 15 calls, my broker (interactive brokers) calculates delta as 1.000 for everything below $240. It's surely rounded, but I bet there are a lot of 9s in the unrounded number. If we go out to March, $60 and below have a delta of 0.999 and $30 and below have a delta of 1.000.

I think this is incorrect. If you buy a $10 call on a $300 stock, that's virtually identical to buying 100 shares. The position will have virtually 0 extrinsic value. The market maker doesn't have to worry about hedging the other greeks with something this deep ITM, but will certainly delta...

@Fact Checking can I ask where you learned so much about options? I'm thinking of buying the Sheldon Natenberg book. How does it look to you?

When people talk about reverse engineering, it's almost always to refer to the case where you don't have the source code. It's very time consuming, but it can be very exact. You get all the instructions that make up a program, which is usually enough to discover whatever you want about it, even...

@StealthP3D, let me reiterate that I do not know whether Chanos is operating morally or he is guilty of all the accusations I'm reading in these last few pages. I will try to research them to make up my own mind. I was not defending anything. I hoped to clear some confusion regarding the...

OK, I might be wrong here, but this is my understanding of the matter: You do get $900K cash when you short $900K worth of stock. You can try it if you have a margin account by shorting a single share of something like iwm or SPY. You'll see your dollar balance go up. The reason it's not free...

You do get cash for shorting. If I short $1000 worth of stock, I get paid instantly $1000. The profit or loss I realize depends on whether I can buy back the shares with less than the $1000 I got paid instantly. If chanos gets $1M from an investor and shorts $900K, that means he's borrowing...

I don't think I'm being disrespectful, but If I am, please let me know. This is incorrect. The position makes money as long as the position loses less than the market goes up. Also please keep in mind that I explained the structure of Chanos' fund and its mechanics; that's what I like, not...

I just mean going short as an hedge and long with more leverage. I'm not a Chanos fan - I just know more or less how his fund works based on bits and pieces I've read. I don't know the history of what he actually shorted (apart from the fact that he's pretty vocally short Tesla, obviously).

I'd like to make a post about the kind of short Chanos is. I see him mentioned at lot here, and often in a very negative way, so I'd like to share my perspective as someone who likes the kind of investing he does. If anyone has access to an hedge fund database and could provide actual...

Hahaha, that's hilarious. Looks like my P&L curve!

It is my understanding that it will sell, but at the best (highest) price possible. A limit sell order says sell for $0.01 or more.

That doesn't sound right. He'll be matched with the book, so to sell for $0.01 he'd have to sell enough to take out the whole book, as far as I can tell.

If anyone has a cool idea for analysis to do with this data you can ping me (I think just quoting this message should send me a notification). We can match this up with Quantopian's free minutely data and maybe make some cool charts.

Yep, took a good whacking. But I wasn't unhedged so it stung a tiny bit less than it could have. No way I stop learning finance just because I lost money :D . Can't wait for the 10Q to learn more.

... ouch. Congratulations, guys. :p

Uh, I think something just happened.

Trust me I'm watching. Every trade I'm seeing is making me skip a beat lol. 15 second candles are detrimental to my health.

https://edge.media-server.com/mmc/p/z7r768gm But it's still 2 hours until the call is scheduled to begin.

I think 12:30 AM. Cool google tip: just google "3:30 PM PDT in switzerland" and google should give you the answer directly. Lots of nifty things integrated in google search lately; they have timers and whatnot as well...

I'm going to *try*, as I'm not an option expert by any means: ITM options have a large delta and a small theta and small vega, ie they move a lot with stock price (which is down today) and not very much with the passing of time and with volatility. As an extreme example, a call with a strike...

Dumb question, but at what time do the numbers come out? Right after close or together with the call (or some other time)? Or is it not known? I realize this is the absolutely least important thing about the earnings :p

Most of you here are doing real investing. I'm mostly playing with money I can afford to lose while I study how things work. When I'm outright short, I'm short way less than 100 shares, so I can sleep well knowing even if Tesla were to open tomorrow at >$1000 I won't be losing my shorts (heh)...

Yes, this is exactly why I asked what bulls thought about revenue. As I said in previous messages, I'm probably going to get less short ahead of ER now that I know that no one is expecting revenues to grow YoY. For some reason, I remember looking up Wall Street consensus being a slight YoY...

More or less it does line up with the definition of gambling, yes. On the other hand, you can apply the same principle to something like long-horizon value investing where you hope that your interpretation of the financial statements of a company, its position in the market and its future...

Absolutely! I realize I'm a guest here. I'm definitely not here to push my viewpoint, mostly just to listen to another point of view. Yes, of course. Depending on the period I might be outright short (but with a position size that wouldn't blow me up even if Tesla were to have a 100% overnight...

Thanks! Interesting! I'd actually think the opposite. Since the revenue decline might be baked in the price, it might take an exceedingly big revenue miss to significantly move the price. Makes me think about getting less short into earnings.

Hi, I'm a "short" (a student with only peanuts I can afford to lose at stake, a very small fraction of the position size most of you likely have). I come in peace! I'd like to have respectful conversations, ask questions about the current bull line of thinking, and provide answers about the...