Short-Term TSLA Price Movements - 2016

[KnowLittle]

I looked into my account's Lent Fee Details, and see that they there are considering the MARKET FEE RATE TO ONLY 22%, (while stating 50%-108% on internet) and I get half of that i.e. 11%. I don't know why there are different rates on their Trade platform. What rate do others see in their Account activity statements?

I see the same as you -- highest rate this month was 9/25 at 22.05% (11.03% to me)

 

[JRP3]

SCTY up and TSLA down?

 

[racer26]

SCTY up and TSLA down?

Well there *was* a big arb gap to close... still $23/TSLA of arb gap to go.

 

[Hogfighter]

I sure wish I could borrow something for 11% and lend it out at 80%

 

[racer26]

I sure wish I could borrow something for 11% and lend it out at 80%

That's how *they* make money. But how do *you* make money? With an ING Direct...

God, those commercials are etched into my brain from like 10 years ago. I can't find one on youtube now, but I'm sure other Canadians remember.

 

[theschnell]

The shorts seem to have shares to borrow again. This is perfect timing. I will have more money in my account in a day or two and will be buying some calls prior to delivery reveal. Then, based on that number, it will be time to buy some more calls if the deliveries are good.

 

[joseph7h]

Any news there today? How come this thing is down so big?

 

[theschnell]

I am curious how soon the vote will be scheduled now that the record date has passed. I would imagine in the next couple of weeks, but maybe they wait for Q3 ER first?

 

[Papafox]

Any news there today? How come this thing is down so big?

Shorts are selling into new positions this morning. They are also testing the longs to see if they can induce some fear, which would lead to selling by longs. The good news is that there are plenty of longs planning to buy in this week and when the stock stops dropping, the buying begins. The only question is what time or what date does the buying begin? Most longs will want to load up prior to close on Friday. Fortunately, we're relatively close to Friday now, compared to the mischief that could take place if the record date had occurred on Sep 19 instead of Sep 23.

The down macro market is supporting the short selling, but we saw yesterday that TSLA can defy the broader market this week if the stock is on an upward march.

Edit: Nice bounce off 205

 

[racer26]

Yup. Seems the powers that be have given the shorts enough rope to hang themselves just in time for 3Q16 delivery reports.

I don't see how any long could see this as anything but one of the last possible opportunities to get in before the delivery reports.

 

[Jayjs20]

Are they out? Downward pattern seems to have stopped. Can't even hold 205 right now.

 

[Papafox]

Make that two times that 205 has been tested today and attack repelled. I'd love to see IB and Fidelity shares to short that are available right now. I suspect most of today's ammo has already been used by short sellers.

 

[SuryaDham]

Make that two times that 205 has been tested today and attack repelled. I'd love to see IB and Fidelity shares to short that are available right now. I suspect most of today's ammo has already been used by short sellers.

IB: still 79%, but now 197K shares available to short...

 

[joseph7h]

If you look at AMZN essentially doubled from it's mid-Feb lows, you have to admit investing in Tesla is completely mistaken.

Shorts are selling into new positions this morning. They are also testing the longs to see if they can induce some fear, which would lead to selling by longs. The good news is that there are plenty of longs planning to buy in this week and when the stock stops dropping, the buying begins. The only question is what time or what date does the buying begin? Most longs will want to load up prior to close on Friday. Fortunately, we're relatively close to Friday now, compared to the mischief that could take place if the record date had occurred on Sep 19 instead of Sep 23.

The down macro market is supporting the short selling, but we saw yesterday that TSLA can defy the broader market this week if the stock is on an upward march.

Edit: Nice bounce off 205

Is it possible someone already knows Q3 delivery numbers are not good and starts selling? The volume is not on the low end (1.6M already), which caused me thinking maybe this one will be down further after reporting Q3. If that is the case, this stock play is essentially over till M3 deliveries start.

 

[Jayjs20]

Fear mongering usually doesn't work here, joseph. Try the yahoo finance forums.

 

[Papafox]

IB: still 79%, but now 197K shares available to short...

Thanks much SuryaDham, Looks like additional shares coming available today. Still, I would think short sellers aren't seeing the desired effects of a morning selling spree. If TSLA could recover somewhat today without the available short shares being used, that would be a positive event for longs, because it would signal that the limiting factor for shorts is no longer the availability of shares, but rather the perception of likelihood of making money by shorting this week.

 

[madodel]

Fear mongering usually doesn't work here, joseph. Try the yahoo finance forums.

Or more likely SA.

 

[dirtyofries]

Or more likely SA.

It doesn't just work there, it makes front page.

 

[Nate the Great]

Quick question regarding brokerages that allow for "Fully Paid Lending Program". I know that there are a few that do not have this program: Etrade, TD Ameritrade, Vanquard.

For the brokerages that do have this program: Schwab, IB, Fidelty. Which one offers a better premium?

Thanks,

N

 

[3Victoria]

Stocks like Tesla that fluctuate rapidly are good for short-term traders, either by buying low and selling high, or by borrowing high and covering low -- rinse and repeat. Only for the brave, though.

On the other hand, many believe it is a good investment for "longs", with the emphasis on long-term (2-10 yrs).