Wiki Selling TSLA Options - Be the House

[SebastienBonny]

Now that the sellers left the building, the SP can start rising again. If rumors are true Elon is searching more equity partners in order not to sell tsla shares, TWTR overhang could be gone. Just maybe this will give us some opportunities to sell some cc's for next week at the end of the trading day.

 

[wnorris]

Now that the sellers left the building, the SP can start rising again. If rumors are true Elon is searching more equity partners in order not to sell tsla shares, TWTR overhang could be gone. Just maybe this will give us some opportunities to sell some cc's for next week at the end of the trading day.

Question that remains is how much equity is needed? Elon could easily pull in $1-2B, but anything north of that and I have to think that is a tall order with such limited time.

Thankfully I held off on rolling my puts out this morning. Hopefully we can get some clarity on how close he is to fully funding Twitter today. I would like to think someone like Ron Baron or Baille might throw in some small amount simply to make this all go away to ensure their core holdings are stable.

 

[intelligator]

reminder to those thinking of flying closer to the sun: make sure there is an exit plan in case of sudden reverse.

+1

I've closed Friday's 235, 240, 245 CC during the "first" morning low at 98% . I'd like to buy sub 200 but am afraid that if I sell ATM cc to generate cash and tax loss, I'd possibly activate the wash sale rule. But I have a bunch of DITM BPS that will take care of losses . Instead, I'm considering using portfolio margin to buy , if indeed this dip occurs.

 

[BornToFly]

Macro is saving my ass. I'm good on Margin only to 190.

 

[BornToFly]

I just think that if Elon wasn't going to sell TSLA to fund Twitter this coming Monday he would have said so. I'm really scared for tomorrow and next week.

 

[jeewee3000]

Given the higher than normal volume in the first 10 minutes of trading, I'm guessing Elon did sell some shares.

Wasn't expecting this, nor am I "predicting it" now, but it would make sense of the price action.

 

[CHGolferJim]

Bought Jan 25 $300 LEAPS for $52. Probably missed the bottom, but I'm super happy about that purchase.

Nice, paid twice that 5 weeks ago!

 

[WattsHappening]

Given the higher than normal volume in the first 10 minutes of trading, I'm guessing Elon did sell some shares.

Wasn't expecting this, nor am I "predicting it" now, but it would make sense of the price action.

He can't sell today. Still in the lockup period.

It's not perfectly clear to me whether the window opens for him to sell starting tomorrow or Monday.

 

[vikings123]

I just think that if Elon wasn't going to sell TSLA to fund Twitter this coming Monday he would have said so. I'm really scared for tomorrow and next week.

Selling shares will probably be used as a last resort and the reason why he . Elon knows he is overpaying for Twitter. While not a good look I'm sure he can find enough investors to join him. His credentials obviously speak for himself.

And don't forget what he was able to do recently. Sell $3 million worth of this thing below in a matter of days?

BURNT HAIR!

 

[bkp_duke]

He can't sell today. Still in the lockup period.

It's not perfectly clear to me whether the window opens for him to sell starting tomorrow or Monday.

He's sold the day after earnings before IIRC. There is some disagreement on exactly when the window ends for him to be able to trade.

 

[mongo]

He's sold the day after earnings before IIRC. There is some disagreement on exactly when the window ends for him to be able to trade.

I think that was with a 10b5-1 plan...

Option n+1: execute a tranche of the 2018 plan selling them to Tesla. Buyback execution.

Tesla policy may be 2 days post earnings, but that's not a hard SEC requirement.

 

[bkp_duke]

I think that was with a 10b5-1 plan...

Option n+1: execute a tranche of the 2018 plan selling them to Tesla. Buyback execution.

Tesla policy may be 2 days post earnings, but that's not a hard SEC requirement.

Thanks, that clarifies the disconnect.

 

[TexasGator]

Sold 5 jan25 250 CSPs for $86 each. A nice low maintenance/stress position (hopefully). If Elon does sell and drive the price down will sell more

 

[Knightshade]

Any idea what extrinsic value was left (if any) on them before exercised?

The 10/21 $296.67 had about 40 cents left when I rolled near close yesterday to $295.00 for 10.28 at a net debit of $1.40

I think that implies an extrinsic of roughly 67 cents a share for the new 295s at around 4pm yesterday.

No idea what it would've dropped to at the open- nor any idea if the early exercise took place yesterday after close or first thing this morning- just that they had been exercised at the $295 price by about 9:35 this morning.

 

[Yoona]

I will continue with my strategy of selling weekly shitcalls...

what strike are you thinking of for 10/28?

soicancopypaste...

 

[traxila]

Lol that's what happens when he basically has no idea how to game the stock market.

His a smart guy with Engineering but he has no idea how to be a crook and game the market. He could of easily done a sale to institutions behind the scenes and not sell on the open market, yet he insists on doing it on the market.

Don’t like TWTR stuff at all, hate it, but I don’t see how EM’s sale price points so far don’t make everyone else look like bagholders. Regardless of how he liquidated, don’t see how you could say he has no idea how to game the market.

Investment bankers come with their own issues and fees. Secondary placements as well.

If he is suddenly liquidating again in the next couple of days, I will be more open to your interpretation.

 

[bkp_duke]

Posted in Twitter thread, but bears repeating here:

If Elon were going to sell, it would have been when the stock was ~300, right after it came out that he will close TWTR under the original terms. I'm in the camp that he's not selling anymore (but I've been wrong before).


And I've said this before, but it bears repeating - he MAY NOT need to sell any TSLA to buy TWTR. The key is this: if he picked his share lots carefully when he sold the last two times, he should have zero tax burden. I'm specifically referring to the shares he bought when he exercised options late last year. Tax was paid on those options exercises, and his basis on those new shares would be higher than the price he sold at (actually generating him a tax loss to claim).

Now, if he was stupid and sold old old old share lots with a basis of like $10 or something, well, he's screwed and will pay > 50% tax on those.

Again, the devil is in the details. And only Elon and his brokerage know what lots were picked for those share sales.


But the difference is literally billions of dollars, possibly as much at $10B.

 

[mb300sd]

Closed my 215 CSPs too early for $5 profit. Better than eating them I guess.

Sold 200 CSP. I don't think there's much chance of going that low tomorrow. Wouldn't mind some wheel shares at that price so I can feel safer selling CCs without tax risk.

 

[WattsHappening]

Posted in Twitter thread, but bears repeating here:

If Elon were going to sell, it would have been when the stock was ~300, right after it came out that he will close TWTR under the original terms. I'm in the camp that he's not selling anymore (but I've been wrong before).


And I've said this before, but it bears repeating - he MAY NOT need to sell any TSLA to buy TWTR. The key is this: if he picked his share lots carefully when he sold the last two times, he should have zero tax burden. I'm specifically referring to the shares he bought when he exercised options late last year. Tax was paid on those options exercises, and his basis on those new shares would be higher than the price he sold at (actually generating him a tax loss to claim).

Now, if he was stupid and sold old old old share lots with a basis of like $10 or something, well, he's screwed and will pay > 50% tax on those.

Again, the devil is in the details. And only Elon and his brokerage know what lots were picked for those share sales.


But the difference is literally billions of dollars, possibly as much at $10B.

Good point.

But I recall Elon indicating he was going out of his way to pay more in taxes.

In any case, the main issue is, no one knows. It's the uncertainty that is causing the heartburn and giving shorts the ammunition to attack TSLA. I don't see how we make any serious gains until this is resolved.

 

[bkp_duke]

Good point.

But I recall Elon indicating he was going out of his way to pay more in taxes.

In any case, the main issue is, no one knows. It's the uncertainty that is causing the heartburn and giving shorts the ammunition to attack TSLA. I don't see how we make any serious gains until this is resolved.

That was last year, when he was selling shares to complete his options exercise. He has mentioned nothing like that since.