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

BlackS

Supporting Member
Supporting Member
Feb 20, 2018
2,792
26,664
USA
upload_2020-12-18_9-14-47.png


Is this Gordo's secret lover or alter ego? Can't figure it out....o_O
 

Knightshade

Well-Known Member
Jul 31, 2017
12,796
18,895
NC
Too many dips lately. Fresh out of dry powder!

I'm out of dry cash, but had a stupid amount of margin sitting around... options seem pretty overpriced right now so seemed the right time to sell some, but didn't want to sell against core shares in case we get something nutso like huge spike tonight where folks exercise early to grab a quick cash in or something goofy.

So I used some margin to do buy/writes- bought around 665, selling 670 call Feb 2019 for about $9000 premium per contract.


If somebody wants to exercise those early today on a spike- great, I'll let them speculate and pocket the 9k per contract for paying like $2 in margin interest.

If they hang around to expiration I'm ok with that too, I've never had margin shares I haven't been able to stay WAY ahead of margin interest on selling covered calls, even when SP has dipped well under the basis price, until it came back above.
 
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Buckminster

Active Member
Aug 29, 2018
3,449
17,772
UK
As we stare into how the day is going to unfold, here is an update on the delta hedge inventory. The hedge need estimate (Using 60% or raw numbers below) is a bit shy of 150 million shares (corresponding to the 245 million number today in the table below)

While this is high, we have seen higher levels. This was as high as 290 million raw hedge need, right after the announcement of the stock split. So 245 million is not off the charts number, and we will perhaps hit that threshold if we see prices around 800.

Interesting to note that almost 50% of the gamma (increasing delta with price phenomenon) is from options expiring today (~35 percentage points) and next week (~14 percentage points). As holders of these options sell, that should provide some additional liquidity to the index buyers. I'd say these option holders are well positioned to profit off and provide liquidity at the same time. They represent anywhere from 21 to 36 million shares (net) in at prices ranging from here to 800 (raw numbers would be 35 to 60 million). As a bonus I am also publishing the hedge need by expiry for large moves as things stand today.

View attachment 618789


View attachment 618790

Can't see 60 million shares being made available for this today. That is half of what is needed. Anyway, won't they rollover their TSLA options or convert to TSLA shares in a lot of cases?

https://twitter.com/garyblack00/status/1339975507526504450?s=20

View attachment 618859

Indexers have put in MOC and LOC orders for 130M shares.

Does Gary have a way of actually knowing this? Bloomberg terminal, etc...
Presumably Gary can see how many shares are available to buy at the close also. Zilch?
 

FrankSG

Active Member
Jun 27, 2019
1,615
21,504
Singapore
View attachment 618858

TD offers it on the app. LOC or MOC.

Let me add to this that the LOC orders will be filled at the same price as the cross happens. I tested this with some LOO (Limit on Open) orders today:

LOO and MOO.jpg


Interestingly enough, the $670 LMT order did not get filled, so presumably there was inadequate liquidity.
 

dakh

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Supporting Member
Jun 14, 2015
1,140
2,494
Seattle, WA

jerry33

(S85-3/2/13 traded in) X LR: F2611##-3/27/20
Supporting Member
Mar 8, 2012
19,958
23,896
Texas
If I buy some Tesla shares, I'm a shareholder of record just as the funds are.
This is different then when it was discussed at the last earnings call. While it's possible for an individual to be a shareholder of record, it's rather unusual and the individual must take steps to become one.
 
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gabeincal

Supporting Member
Supporting Member
Jul 5, 2016
1,273
10,329
SF Bay, CA
Are you suggesting keeping the thread from public eyes, or just limiting who can actually post?

Keeping the thread from public eyes.

Edit: A thread only visible to members of TMC (and possibly only paid members) would be a fair compromise in google not picking up content, but anyone able to find the thread if they really looked for it.
 
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JRD1

Member
Sep 8, 2016
137
567
Where I am
It looks like you can also do MOC on the TD website but not LOC. Weird.
View attachment 618871

I only use Limit orders so I didn't look at Market at all. Customer service rep said neither could be done on the website or app but could on TOS. Maybe I just asked about limit orders - don't remember.

I placed a high LOC order in TOS and it showed up on the order status screen on the regular website. That was the limit (pun intended) of my testing.
 

StealthP3D

Well-Known Member
Dec 12, 2018
9,755
77,927
Maple Falls, WA
I don't believe I'm a shareholder of record as my broker holds / nominee account. They in turn go through other companies when trading US stocks. The question then becomes, are any of these intermediaries able to naked short. Unlikely for my broker(s) - but possibly for US based/bigger ones.

Yeah, I forgot about that. I still don't think a naked short is prevented from selling to an index fund, they just have to supply the shares eventually. In any case, TSLA is easy and cheap to borrow so regular short-sellers can supply shares to funds (if they have any money left, lol).
 
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