Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[dl003]

How could they justify paying any premium though? The whole point of an index fund is to have minimal cost and minimal active management.

These could be hedge fund locking shares without running up the prices too much. They'll just short sell the shares tomorrow to indexers and exercise the calls, not necessarily in that order.

 

[Cherry Wine]

<=$650 sell orders are shrinking considerably. 186k shares.

 

[bkp_duke]

These could just be people rolling their calls. No special insight, but I'll also be rolling my 300 calls today or tomorrow.

300 calls?

Mad money!

 

[Right_Said_Fred]

This is steady accumulation. And the funny thing is that for some of these guys the buying is done with a gun to their head.

 

[Johan]

There's pretty much zero premium on these actually. Maybe 10 or 20 cents.

But it could also be profit taking from somebody who bought these right after announcement. Will be interesting to see if OI is higher or lower tomorrow.

These could be hedge fund locking shares without running up the prices too much. They'll just short sell the shares tomorrow to indexers and exercise the calls, not necessarily in that order.

Yeah my guess these DITM calls are just a way of taking up long positions, either "pure" long positions or for the purpose of hedging some opposite short position, without buying actual stock. But not by the index funds, I find that unlikely.

 

[Big Time]

FBA71C4C-809E-40B4-85DF-BFAC343CBD85

• Big Time
• Aug 18, 2020

Kramer

Shorts are about to get destroyed

 

[Singuy]

16% of the float is about to be purchased and locked asway essentially forever. We know this.

If MM bought the shares during this run up so they can sell to Index funds as to prevent an artificial squeeze (as they will promise to sell and not hold just to decrease liquidity), then there wouldn't much of a run up at all. There wouldn't be much of a sell off after inclusion either. Because if this was the case, another way to word your statement is "the run up from 410-650 is locked away essentially forever). The true front runners could sell but will be at a loss since they were behind MM. Probably explains the consolidation around this level if MM has all the shares they need to not cause any kind of volatility when index funds need to buy as retail front runners getting screwed by IV crush.

 

[CyberDutchie]

The index funds don’t care so much about what price they have to buy. What they care about is what’s gonna happen after inclusion, in particular the last days of December trading. Their business depends on S&P 500 delivering a solid annual return (10-15% or better), that’s the market appeal of these funds.

So, in my opinion, this means if the index funds have any control over what happens at all, they will focus their efforts on preventing a huge sell-off after inclusion. That’s why I’m not worried about it.

 

[ggies07]

Toyota’s Chief Says Electric Vehicles Are Overhyped
-WSJ

Toyota President Akio Toyoda said Japan would run out of electricity in the summer if all cars were running on electric power.

In a country such as Japan that gets most of its electricity from burning coal and natural gas, EVs don’t help the environment, Mr. Toyoda said. “The more EVs we build, the worse carbon dioxide gets,” he said.

 

[H Mak]

+4% on the day. This is building nicely. Almost as though something is stirring into life.

 

[generalenthu]

300 calls?

Mad money!

Ha.. 300 strike.

 

[Johan]

+4% on the day. This is building nicely. Almost as though something is stirring into life.

You'd almost think something big was going on, maybe not today but could be something tomorrow?

 

[H Mak]

You'd almost think something big was going on, maybe not today but could be something tomorrow?

No idea what you're talking about

 

[Cape Coddess]

1. I then created three conditional orders that are triggered only if the above order executes. Those three orders each use 1/3 of the proceeds from the above sale and buy back in at about $700, $650, and $600. As with the initial order, these are limit orders GTC + Extended Hours.

This way, if a spike occurs that drives up to my sell order and then we drop back down, I'll buy back in and end up with slightly less than 50% more shares than I sold. And this is in a retirement account, so there are no capital gains to worry about at this point. And this is all automatic so I don't have to fret about missing it if it happens during the eighteen minutes per day that I'm actually working. If the spike doesn't happen by the time this S&P fun settles out next week, I'll go in and cancel all the orders and continue to HODL (uh, why are we spelling it like that?), as I'm already doing with the other 80% of my TSLA that's not part of this experiment.

That's as clever as I get.

How did you do that and which broker do you use? Did you have to call them?

 

[HG Wells]

My psychic or psychotic self says we cross 650 today.

Well, it's looking like I can go off my meds today.

 

[woodisgood]

Wouldn’t it be fun if Tesla threw a wrench into all this madness, say by announcing a split or other interesting news.

 

[ProfTournesol]

Anybody with a L2 orderbook depth graph?

 

[M|S|M MYP]

Wouldn’t it be fun if Tesla threw a wrench into all this madness, say by announcing a split or other interesting news.

"A split does nothing for the stock price......" Remember?

 

[Rockster]

How did you do that and which broker do you use? Did you have to call them?

I use TDA Ameritrade but access the advanced functions (e.g., conditional orders after hours) using their Think or Swim application.

 

[HG Wells]

Wouldn’t it be fun if Tesla threw a wrench into all this madness, say by announcing a split or other interesting news.

Like CCS DC adapter (US) or model Y RWD ?