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

StealthP3D

Well-Known Member
Dec 12, 2018
9,758
77,934
Maple Falls, WA
16% of the float is about to be purchased and locked asway essentially forever. We know this.

Yes, and we could get a nice bump (or not). But probably not anything like what people were talking about just 1-3 weeks ago. The key fact here is that the price has already run up from $408 since the announcement and we don't know how many of those shares will suddenly become available.

However, your statement, coupled with your disagree of my last post, seems to imply that a huge runup from this level is a certainty. There is no way to know that.
 

JRD1

Member
Sep 8, 2016
137
567
Where I am
Along those lines, E*Trade allows extended hours (7am-8pm ET) limit sells.

This is different than what I mentioned. Extended hours trades can be made using the standard TD Ameritrade website and apps. Limit on close orders are different.

I know you are talking about E*Trade, just want to make sure there is no confusion on the different type of orders.
 

MP3Mike

Well-Known Member
Feb 1, 2016
16,224
36,576
Oregon

FrankSG

Active Member
Jun 27, 2019
1,615
21,504
Singapore
There seems to be significant volume on DITM calls expiring tomorrow.

DITM vol.jpg


I wonder if this could be index/benchmarked funds. They're not paying much of a time premium for these options.

Volume at $420 strike for today is 979 contracts, or almost 100k shares worth. Not massive, but certainly not small either.
 

Johan

Ex got M3 in the divorce, waiting for EU Model Y!
Feb 9, 2012
7,496
9,788
Drammen, Norway
There seems to be significant volume on DITM calls expiring tomorrow.

View attachment 618500

I wonder if this could be index/benchmarked funds. They're not paying much of a time premium for these options.

Volume at $420 strike for today is 979 contracts, or almost 100k shares worth. Not massive, but certainly not small either.

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

FrankSG

Active Member
Jun 27, 2019
1,615
21,504
Singapore
How could they justify paying any premium though? The whole point of an index fund is to have minimal cost and minimal active management.

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.
 

Nocturnal

Supporting Member
Supporting Member
Aug 23, 2018
6,685
35,852
Deepening Crisis!
How could they justify paying any premium though? The whole point of an index fund is to have minimal cost and minimal active management.
Right. What happens if they pay premium and the options expire worthless? That would create a negative tracking error. I suppose the risk of not being able to buy regardless of price might justify that risk. Sigh. So much speculation and not much information.
 

Prunesquallor

His cardinal virtue? An undamaged brain.
Supporting Member
Dec 19, 2018
3,435
37,635
Houston/Galveston
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.
 

wipster

Gold Member
Supporting Member
Nov 10, 2013
3,364
15,649
Kennewick, WA
Toyota’s Chief Says Electric Vehicles Are Overhyped

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.
Stupid is as stupid does...
 

generalenthu

Supporting Member
Supporting Member
Jun 10, 2015
1,189
9,830
Vienna, VA
There seems to be significant volume on DITM calls expiring tomorrow.

View attachment 618500

I wonder if this could be index/benchmarked funds. They're not paying much of a time premium for these options.

Volume at $420 strike for today is 979 contracts, or almost 100k shares worth. Not massive, but certainly not small either.

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

dl003

Active Member
Nov 22, 2019
1,655
14,675
Texas
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.
 

Johan

Ex got M3 in the divorce, waiting for EU Model Y!
Feb 9, 2012
7,496
9,788
Drammen, Norway
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.
 
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