Short-Term TSLA Price Movements - 2016

[ggr]

A note from experience. Both the culmination of the merger, and the fact that this is a short holiday trading week, will make TSLA in particular have low volume and volatile price. The shorts may exploit that. If you have outstanding stop-loss orders, you might be susceptible to "flash crash" moments. I'm not a pro, and not making a recommendation, but I would definitely not leave stop loss orders open this week. If you can't be watching the market, just sit tight.

I think the SCTY stock will convert after hours tonight.

 

[Gerardf]

Noticed my schwab SCTY shares are not trading. Figured they are converting today. Damit if tesla goes up today do we loose out on that?

No
You no longer own SCTY, but own TSLA instead (but probably not showing in your account yet)

 

[Johan]

Noticed my schwab SCTY shares are not trading. Figured they are converting today. Damit if tesla goes up today do we loose out on that?

What do you mean? You'll get a certain number of TSLA shares, which is calculated from the number of SCTY shares you held, regardless of the price of TSLA or SCTY for that matter. So you're not missing out on anything. The ratio never had any connection to the real time pricing of either stock.

 

[Papafox]

TSLA has been following NASDAQ general trajectory this morning, except you saw plateaus in TSLA at 187.50, 188.0 and 188.50 as shorts capped but the caps didn't hold. Both NASDAQ and TSLA peaked a few minutes ago, but TSLA dropped as shorts started selling. Tesla caught itself and is back up again. NASDAQ was up 0.66% but is up 0.59% now.

 

[MartinAustin]

Damit if tesla goes up today do we loose out on that?

NO!!! You simply get about 1 TSLA stock for every 9 SCTY stocks you owned. It's as simple as that. Doesn't really matter what day or time the conversion happens. If TSLA goes up 5% before the conversion, your assets will still be worth 5% more when you finally get hold of the TSLA stocks.

RE: the market... when will today's short attack begin? It certainly hasn't started yet...

 

[neroden]

NASDAQ halted trading in SCTY before market open, in preparation for delisting.

Nasdaq Files for Delisting of SolarCity (SCTY) Shares

Form 25-NSE SOLARCITY CORP Filed by: NASDAQ Stock Market LLC

I haven't paid to get access so I can't read the whole article. The official reason for trading halt is "information requested by NASDAQ", which is awfully vague.

I'm not sure when the conversion to TSLA stock (100 sh SCTY->11 sh TSLA) takes place, but today is extremely likely. Just hold your horses, if you have SCTY stock now, you'll have TSLA stock soon.

If you owned odd shares of SCTY which would leave you with a fractional share of TSLA, I have no idea what price you'll get for it.

 

[Irishjugg]

Except what happens when the SP goes to $280-$380? That is going to happen, possibly in January or February.

Ehem, you are right. My post said "instead of buying an itm call sell an otm put and equivalent stock"

It SHOULD have said "instead of buying an itm call, buy an otm put and equivalent stock". In this case the resulting payoff graph is the same as the itm call but you will have paid considerably less spread.

 

[vgrinshpun]

Noticed my schwab SCTY shares are not trading. Figured they are converting today. Damit if tesla goes up today do we loose out on that?

No. the ratio of SCTY shares to TSLA shares is fixed at 0.11, i.e. you'll get 0.11 TSLA shares for each SCTY share, regardless of the price TSLA is trading at.

 

[MitchJi]

Just called the OIC.

They said that if you exercise your SCTY options today you will receive shares of TSLA.

Tomorrow the symbol name will change to TSLA1 options which could be more difficult to sell to close.

 

[neroden]

Just called the OIC.

They said that if you exercise your SCTY options today you will receive shares of TSLA.

Tomorrow the symbol name will change to TSLA1 options which could be more difficult to sell to close.

Exciting. I didn't know the OIC had a phone number I could call to ask questions like this!!! Care to share? I can't find a phone number on their website.

 

[kenliles]

Exciting. I didn't know the OIC had a phone number I could call to ask questions like this!!! Care to share? I can't find a phone number on their website.

911 -
Say: Oh-Eye-See Now

 

[neroden]

From OCC: Information Memos :

http://www.theocc.com/webapps/infom...e=201611&lastModifiedDate=11/21/2016+08:19:26

This tells you what's happening to SCTY options.

 

[MitchJi]

Exciting. I didn't know the OIC had a phone number I could call to ask questions like this!!! Care to share? I can't find a phone number on their website.

800-678-4667
I called the CBOE and asked those questions and they told me I needed to call the OIC, and gave me the phone number.

 

[neroden]

Thanks, Mitch!

 

[sundaymorning]

Nice to see some confidence returning to Tesla. With the massive Q3 beat, a floor is likely established. This is unlike the situation we experienced last year, where Tesla missed multiple times, delayed the X combined with huge macro events. Presently, none of those headwinds are in the way, I hope the market sees this.

 

[sunhelm]

Just called the OIC.

They said that if you exercise your SCTY options today you will receive shares of TSLA.

Tomorrow the symbol name will change to TSLA1 options which could be more difficult to sell to close.

Thanks Mitch. I have JAN 18 SCTY calls @20. If TSLA1 is difficult to sell to close, does it make sense to just exercise, buy 11 TSLA @ 181.81? Seems like a good deal to me, what do you think?

 

[All Your Bases]

Just an example of how wrong investment sites can get it ...

Tesla Motors Inc (NASDAQ:TSLA) Announce 2017 U.S. Tour | Benchmark Monitor

 

[FredTMC]

Hey TSLA,

The NAZ has completely rebounded now the morning, so um "giddie up"

 

[madodel]

Just an example of how wrong investment sites can get it ...

Tesla Motors Inc (NASDAQ:TSLA) Announce 2017 U.S. Tour | Benchmark Monitor

I was very confused when I saw that on Google Finance. So anything with "Tesla" in the name in a scanned source goes in their article queue. Let's hope the band Tesla doesn't go down in a fiery plane crash.

 

[Ulmo]

Just called the OIC.

They said that if you exercise your SCTY options today you will receive shares of TSLA.

Tomorrow the symbol name will change to TSLA1 options which could be more difficult to sell to close.

So, TSLA1 can be exercised, I'm assuming. Please correct me if I'm wrong. Then I'd own TSLA1 stock. Which they will convert?