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

[Sudre]

Selling options can be extremely dangerous. Losses are not capped and can be infinite.

I do not get the infinite losses thing with selling options.

If I sell one put with a $500 strike for $60 (making it up here) then I get the $60 and keep that. If the price goes below $500 I buy 100 shares at $500 each or $50K. I now have 100 shares (at a great price). Where are the infinite losses? The most I can loss at this point is if Tesla goes to $0 and those shares become worthless.

If I sell one call with a $1200 strike for $60 then I get the $60 to keep. If the price goes above $1200 I loss 100 shares. The most I can loss is my 100 shares.

I completely get the infinite losses with borrowing stock.

 

[CanadaEV]

I vote for another factory. Not just because it might be in Texas, but because it gives indisputable evidence of global demand and rapid growth. When was the last time any company broke ground on three new factories within two years?

This is happening right before our eyes, but I don’t see many making the direct connection.

Tesla is ramping up the machine-that-makes-the-machine.

The only missing element is sufficient battery production, and if that comes in April as expected, it will be the perfect follow through for ‘Giga Texas?‘

In that case, three factories in two years will look like the flat part of the S-curve.

 

[Highway2Heel]

In case you missed this interview on Wed, Feb 5 during the -$150 'naked shorting' drama:

Big Short's Steve Eisman Says He Covered Tesla Short `A While Ago' | Bloomberg Markets and Finance - YouTube

He sounded...bewildered and....quite frankly...pathetic. Google and GM are autonomous driving leaders?! Really?!

 

[Todd Burch]

but in more important news, I love even numbers! 804!!

That's a whole lotta even numbers.

 

[JustMe]

Exciting rumor!

According to Jay in Shanghai, there appear to be at least 100,000 MIC Model 3 reservations based on vins. Jay in Shanghai on Twitter

If true, Tesla should have no problem delivering 500k vehicles in 2020.

 

[woof]

Are dog's really smarter than cat's?

If we were, we wouldn't be so silly as to antagonize those with sharper claws than us.
So....yes! (ducks)

 

[Vad42]

I do not get the infinite losses thing with selling options.

If I sell one put with a $500 strike for $60 (making it up here) then I get the $60 and keep that. If the price goes below $500 I buy 100 shares at $500 each or $50K. I now have 100 shares (at a great price). Where are the infinite losses? The most I can loss at this point is if Tesla goes to $0 and those shares become worthless.

If I sell one call with a $1200 strike for $60 then I get the $60 to keep. If the price goes above $1200 I loss 100 shares. The most I can loss is my 100 shares.

I completely get the infinite losses with borrowing stock.

That’s a covered call. And it’s pretty safe as you correctly state. But tou have to have those shares. If you don’t have shares and sell a naked call, well then it’s theoretically infinite just like short stock sell as you will have to buy shares to deliver at market price.

 

[Joe F]

Another "headline" from MarketWatch

Tesla stock slammed as company announces plan to issue up to $2 billion in new shares

Tesla stock slammed as company announces plan to issue up to $2 billion in new shares

”MarketBotch” strikes again, aimlessly.

 

[azaz]

"Breaking: China Made Tesla Model 3 reservations hit 100,000 and raising. VIN is current at 100,000+"

from Twitter, no idea source

 

[Vad42]

Another "headline" from MarketWatch

Tesla stock slammed as company announces plan to issue up to $2 billion in new shares

Tesla stock slammed as company announces plan to issue up to $2 billion in new shares

It’s hilarious. First line is a funny cognitive dissonance because live ticker value is automatic.

 

[S3XY]

Andrew Left left - two lefts being a 180°

Two wrongs don't make a right but three rights make a left.

 

[ZeApelido]

PG&E’s Fire Victims Are Set to Become Its Biggest Shareholders | WSJ.com (15 hrs ago)

Blue sky'ing this here folks, not suggesting what could or should happen:

How much would it cost for Tesla to buy PG&E (the bankrupt NorCal Electric Utility)?

What are the advantages, disadvantages, risks to owning such a utility?

Thanks for your thoughts. All discussion warmly received... (NOT a fire season joke!)

Cheers!

I just got the same look on my face as when teenage me walked in on my grandparents having sex

 

[Opus BC fan]

So thoughts on tomorrow....did the price get set at 800?
Will we have a MMD?

Are dog's really smarter than cat's?

I think we are in uncharted waters for share pricing in the near term. There are a lot of variables. After today, I am more relaxed with it all. I believe Tesla has finally taken control of the narrative. Tesla owns the game now. The usual play pattern will run tomorrow unless Tesla gives us some surprise shareholder valentine.

I'm hoping we consolidate more in the low 800s before moving up. I also hope to wake up one day to a 10 or 20-way split (I can dream can't I?). Man, I am loving the ride.

OT My golden retriever & I think that cats are smarter also...

 

[jhm]

people get a bit trigger happy here with the reaction buttons. Don’t take it personal

Many times I fat finger the reaction button. So dislike can come up when I intended to press like. I think I catch all of these mistakes, but it is likely that sometimes I might not detect the error.

So if you ever get a thumbs down from me, you either have been a truly irritating, boneheaded jerk or it was just a mistake.

 

[eloder]

I do not get the infinite losses thing with selling options.

If I sell one put with a $500 strike for $60 (making it up here) then I get the $60 and keep that. If the price goes below $500 I buy 100 shares at $500 each or $50K. I now have 100 shares (at a great price). Where are the infinite losses? The most I can loss at this point is if Tesla goes to $0 and those shares become worthless.

If I sell one call with a $1200 strike for $60 then I get the $60 to keep. If the price goes above $1200 I loss 100 shares. The most I can loss is my 100 shares.

I completely get the infinite losses with borrowing stock.

Not all options have infinite losses. Selling a naked call for example is infinite. If the strike is 100 and the stock price goes to 10,000, you're responsible for buying 100 shares at 10,000 and only get $100x100 back. Your example is a covered call where you already own the stock, so that's your max loss.

Buying puts or selling them are capped loss, but shorting is infinite because you have to buy the stock at any infinitely high price if you lose.

 

[jhm]

I just got the same look on my face as when teenage me walked in on my grandparents having sex

 

[Cosmacelf]

In case you missed this interview on Wed, Feb 5 during the -$150 'naked shorting' drama:

Big Short's Steve Eisman Says He Covered Tesla Short `A While Ago' | Bloomberg Markets and Finance - YouTube

“Electronic cars”? This fits the classic “I’m now dumber for listening to this”. I don’t know if he’s an idiot, but he sure comes across as one.

 

[mickle]

An update from Fidelity after I expressed interest in the new offering:

Fidelity Alert - New Issue Offerings

Issuer: Tesla, Inc.

Offering: Tesla, Inc. Follow-On Offering

We are still waiting on official pricing terms and confirmation that the registration statement for the Tesla, Inc. Follow-on offering has been declared effective by the SEC from the underwriters. At this point, we do not anticipate having official pricing terms this evening. Therefore, Personal Investments (PI) has withdrawn from the Tesla, inc. Follow-on offering for the following reasons:

PI is required by the SEC to obtain confirmations on indications of interest after effectiveness but before secondary market trading in Tesla begins. The Tesla, inc. Follow-on offering is expected to be declared effective tomorrow morning, and trading in the secondary market will begin immediately afterwards. As a result, there would be insufficient amount of time for PI to obtain customer confirmations and complete the allocation process prior to the security's trading in the secondary market. Therefore, PI has withdrawn from the Tesla, Inc. Follow-on offering.

 

[Artful Dodger]

“Electronic cars”? This fits the classic “I’m now dumber for listening to this”. I don’t know if he’s an idiot, but he sure comes across as one.

Yes, I chortled over that one too. He seems to be the type of guy who's quite happy with the Electrohome Quadraphonic record player he bought new in '65 and its still good, goldurnit! Here's the secret to all that electronic goodness (don't tell anyone!)

Cheers!

 

[Cosmacelf]

An update from Fidelity after I expressed interest in the new offering:

Fidelity Alert - New Issue Offerings

Issuer: Tesla, Inc.

Offering: Tesla, Inc. Follow-On Offering

We are still waiting on official pricing terms and confirmation that the registration statement for the Tesla, Inc. Follow-on offering has been declared effective by the SEC from the underwriters. At this point, we do not anticipate having official pricing terms this evening. Therefore, Personal Investments (PI) has withdrawn from the Tesla, inc. Follow-on offering for the following reasons:

PI is required by the SEC to obtain confirmations on indications of interest after effectiveness but before secondary market trading in Tesla begins. The Tesla, inc. Follow-on offering is expected to be declared effective tomorrow morning, and trading in the secondary market will begin immediately afterwards. As a result, there would be insufficient amount of time for PI to obtain customer confirmations and complete the allocation process prior to the security's trading in the secondary market. Therefore, PI has withdrawn from the Tesla, Inc. Follow-on offering.

Thanks for the info. So, as expected, the $2B offering got placed today. I suspect that most of the buyers were institutions in the $10M or much higher range.