Never will happen due to HIPAA, but I’m curious what the underlying chronic conditions that the deceased had. Likely the risk factors are the same as any other flu, but would be interesting to see whether there is any relevant pathologic difference.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
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Never will happen due to HIPAA, but I’m curious what the underlying chronic conditions that the deceased had. Likely the risk factors are the same as any other flu, but would be interesting to see whether there is any relevant pathologic difference.
Sherlo
Member
hacer
Active Member
First let me say that MMs can and do abuse the rules and they deserve much greater scrutiny than the SEC has ever given. However, Options Market Makers do need to keep themselves near delta neutral, and buying and selling stock to achieve that is a bona fide market making activity.
In the case of selling puts, as the stock price drops the MM needs to become more delta negative because puts that they previously sold need to be kept delta neutral. In a balanced market with nearly equal puts and calls written by the MM it might be a wash where the delta shed from calls covers for the gain in delta from the puts, at least for small moves. TSLA has generally had a high put/call ratio such that option MM mostly needed to be net short the stock to remain delta neutral. The recent run-up in TSLA likely caused some people to insure their profits by buying puts (which you yourself suggested) and of course TSLAQ is always buying puts. So a MM may well have sold puts, in good faith and at reasonable prices weeks or months ago. Now the price is dropping fast and unless they want to go bankrupt they MUST short the stock (or sell stock if they have it) to remain delta neutral. They generally can't buy back the puts they sold - they are the ones making the market - so they must hedge instead.
I think it was @Papafox (or maybe it was @ReflexFunds ) who published tables of the "amplification effect" of option open interest on price moves - this could mostly be an example of that. The overall market melt-down did cause big moves which the MMs may have had no choice but to amplify in order to keep their positions neutral. That they are exempt from the uptick rule is legitimate in certain circumstances which may well have happened Thursday and Friday.
It's still possible that @Artful Dodger is right - for certain the MMs did do naked short selling, but depending on option open interest it might not have actually been illegal and improper. Digging further into the option open interest at the time to estimate what amount of short selling could have been necessary for the MMs to remain delta neutral is needed. Adding that analysis could prove or disprove if this was abusive or not. These days I'm so far behind on just reading the thread there's no way I can find the time to do the analysis myself, so all I can do is recommend that someone who can please give it a shot. I don't know how you and several others here are able to provide so much valuable work to this forum.
HG Wells
Martian Embassy
I was thinking the markets would pop up on monday.
But if the nursing home is as bad as it sounds the market will drop like a rock when confirmed.
But if the nursing home is as bad as it sounds the market will drop like a rock when confirmed.
anthonyj
Stonks
Corona or no corona, the market was due for a correction. The market used Coronavirus as an excuse. I have been wanting to buy MSFT and Apple, but the prices were uninvestable. Now I can finally start slowly adding. Everything was going straight up which isn’t healthy long term. This was needed
EVNow
Well-Known Member
So, you are saying Corona is actually healthy ?
What sort of supply chains exist in the nursing home?
HG Wells
Martian Embassy
It's a fear factory.
In the process of ordering a new LR+ S, I noticed that a month or two ago it was 4-6 weeks for delivery, last week it was 3-5 weeks, and now 2-4 weeks. Not sure if there is anything to read into that, or if typical EOQ push
TheTalkingMule
Distributed Energy Enthusiast
Biden crushing South Carolina coupled with the world not ending over the weekend should push Monday until rebound mode. Maybe just for one day, but we'll see.
September 11, 2001, two planes took down the World Trade Center. SP went down 11.6% in a week. The week after it began to rally all the way into 2002. 3000 Americans died that day and war was imminent. Thats more than nCoVid 2019 killed in 2 months. SP 500 just went down 13% last week. The media is getting out of control.
JRP3
Hyperactive Member
NMC has higher cycle life and is less volatile than NCA. Dahn has been working for a long time on improving the energy density of NMC. If Tesla can move away from NCA they should, and will. That's been my prediction for one of the battery day announcements.
As horrific as that event was it did not lead to a long term fear in the US (WS/economy) because there was a realization that the average family in Boston, Tampa, St, Louis, DesMoines, Phoenix, Seattle, etc. was safe and no schools, factories. businesses potentially needed to be closed for an extended period.
Way different scenarios.
I have no idea how this plays out but it is not a repeat of 911
Get your shopping list together and get ready to incrementally buy on the way down. My list only has one name on it. Well, two....I like GOOGL since it owns around 7.5% of SpaceX. The other? Well, you know....
Sherlo
Member
Just a point of clarification/context...Markets were in a bear market before 9/11 as opposed to our recent ATH. Rallied few months but didn’t bottom out until a year after 9/11.
Of course not the same. We were looking at possibly a global war... could have been worse than a virus.
Not going to be fooled into the fear and negativity....
Maybe I’m mistaken, but isn’t Warren’s or Sanders’s success more of a threat to the markets?
off-topic:
FYI, for all those buying up face masks. Maybe you should also start buying up all stock of hand sanitizers. I’m hearing stores are running low/out of those now. Maybe Kleenex and bottled water will follow.
Not in the immediate aftermath. NYSE actually closed the week after. People was extremely confused. In other words, imagine if NY gets attacked tomorrow and 3000 people die, whats going to dominate the headlines and people's mind? Not the virus I assure you.
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Trying to understand just what you are driving at...
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