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

Johan

Ex got M3 in the divorce, waiting for EU Model Y!
Feb 9, 2012
7,496
9,893
Drammen, Norway
Only true if all S&P names drop the same percentage. If TSLA drops more relative to other names, index funds will have to sell some TSLA at the next rebalance. Similarly, if TSLA drops less relative to other names, they will have to buy more TSLA.

This isn't quite right. Like @smorgasbord says: If TSLA drops in value then the index just tracks that, and in order to stay true to the SP500 the index fund needs the exact amount of TSLA that they are holding to keep tracking correctly. The price of all the other stocks that make up the SP500 does affect the overall index value, of course, but if say TSLA drops a lot while the other stocks stand still then the whole index gets less valuable and TSLA makes up a smaller percentage of the index, but no need to buy more TSLA or sell off TSLA - just keep the same number of shares to keep tracking.
 

StealthP3D

Well-Known Member
Dec 12, 2018
9,894
81,317
Maple Falls, WA
I don't believe it would help them to do that. They are selling to investment firms which are "stockholders of record". I don't know if you can obtain that status without having the actual shares in your hot little hands. So all it would do is move the spike (if any) a couple of days. I also don't think even the SEC could look the other way if they did this.

That makes no sense. You are saying that the market for a short-seller (or a naked short-seller) is a different market than that of a regular seller. That is not my understanding. A sell is a sell.
 

vikings123

Supporting Member
Supporting Member
May 27, 2019
1,138
8,586
MN
MMD already? :)

They forgot to fill the gap. It's done now.

giphy.gif
 

FS_FRA

Member
Sep 4, 2018
485
3,731
Frankfurt, Germany
I would congratulate you but the return for holding TSLA through that same period (without compounding) averages 2.82% per day.

The other thing I know is the traders that have an unusually good run tend to post their results and the traders who blew it tend to slink off into the shadows without letting us know about their personal disasters.

some people really have problems here....SMH

Not trading at all - am HODL'ing. The 3% stuff was a light-hearted response to @Lycanthrope Tesla, TSLA & the Investment World: the 2019-2020 Investors' Roundtable following which I decided to just see how it went...

FWIW: the JAN15'21 720C I bought on S&P announcement is currently sitting at 8X. A couple of days ago I sold 20% of the position when it was 10X briefly. I have GTC order in for half of the remaining position at 10X and the rest at 20X, just in case I miss something.
The DEC31'20 700C I bought a couple of days later is barely breaking even right now. I'll sell this one on gut feeling as it was a lottery call only.

Happy?
 
  • Funny
Reactions: lafrisbee

StealthP3D

Well-Known Member
Dec 12, 2018
9,894
81,317
Maple Falls, WA
some people really have problems here....SMH

Not trading at all - am HODL'ing. The 3% stuff was a light-hearted response to @Lycanthrope Tesla, TSLA & the Investment World: the 2019-2020 Investors' Roundtable following which I decided to just see how it went...

FWIW: the JAN15'21 720C I bought on S&P announcement is currently sitting at 8X. A couple of days ago I sold 20% of the position when it was 10X briefly. I have GTC order in for half of the remaining position at 10X and the rest at 20X, just in case I miss something.
The DEC31'21 700C I bought a couple of days later is barely breaking even right now. I'll sell this one on gut feeling as it was a lottery call only.

Happy?

That's fine - I was literally just responding to what you actually wrote.

Fancy that!
 

MP3Mike

Well-Known Member
Feb 1, 2016
16,435
38,361
Oregon
Do I need to be doing somethng with my Fidelity IRA account to make sure contracts aren't executed before I want? Keep hearing these posts about random executions by brokers.

If you sell covered calls there is nothing you can do to stop them from being executed when the other party wants to other than buying them to close first.

As far as your broker selling ITM calls you hold prior to close when you don't have the money/margin to execute them, that is the policy most brokers have. And I would think your only options would be to get enough money/margin to execute them or roll them to a further out date.
 
  • Informative
Reactions: Artful Dodger

Sancho

Supporting Member
Supporting Member
Feb 18, 2016
660
7,984
Illinois
Although volume is high this morning, I’m assuming the index funds are still not buying. This action is almost all traders, bots, MMs, and amateurs like us all let into Walmart on the first hour of Black Friday shopping.

And it’s all people wagering on what people think will happen between now and 3:50. This is what day traders live for.

The real action starts around 3:30 when it’s no longer bets about what is happening during the day and becomes all about bets on what’s going to happen during the Closing Cross of All Time.
 

mulder1231

Active Member
Jan 1, 2012
1,818
10,444
San Diego
Nope. They won't have to sell TSLA to reduce their percentage because the drop in the stock price has already reduced their percentage the exact amount needed.

Ok, I stand corrected. Once you’re in you’re in with set number of shares then, until a rebalance takes place. Rebalance only based on changes in float of (potentially any) name in the index, correct?
 

EV forever

Supporting Member
Supporting Member
Apr 23, 2016
778
5,817
Irvine, CA
Oh yes you can trade options in BL account. If not for that I'd be missing a digit in my account total figure.
Depends on employers I think.
I cannot trade options in my fidelity brokeragelink account, not even ETFs. Only mutual funds are allowed. So my account is full of Barons Partners and Barons Focused Growth. It has 40% TSLA and 3% SpaceX. As close as I can get to maximize investment in Musk companies with that account.
 

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