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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
StealthP3D
Well-Known Member
I dunno, except that weekly Options are exercised by Brokers during After-hrs on the Friday (or apparently even on the Saturday following expiry).
Right here, Imma usually ask somebody more experienced in Options, like @kar... or @FC...
Maybe @Curt Renz or @StealthP3D can shed some light...
Cheers!
I usually sell them before they expire so I don't have to deal with that type of uncertainty. The details are probably different for different brokerages and I would think it be outlined in the agreement.
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I dunno, except that weekly Options are exercised by Brokers during After-hrs on the Friday (or apparently even on the Saturday following expiry).
Right here, Imma usually ask somebody more experienced in Options, like @kar... or @FC...
Maybe @Curt Renz or @StealthP3D can shed some light...
Cheers!
the process under the hood puts it in perspective.
for american style options, and on a regular trading day, an OCC participants (broker, market maker, whatever) options trading activity is compared with OCC’s files at EOD.
the next step is options EnA activity is sent in a file (some poor saps probably key it into OCC portal still) and a comparison is done for that as well, via another position check;
the total position outcome of trading and options EnA (netting/grossing)
netting/grossing is required when an OCC participant must net down grossed up positions, or gross up an erroneously netted position (prior to EnA activity posting)
lot of factors determine how/why positions can be out of whack between a participant and the clearing house (OCC)
you can have wrong opening/closing indicators tagged to the trades at the exchange (order routing code error)
you can have miscommunication between prime broker and the trading entity (trader gives the wrong info to the prime broker)
all examples of fat finger, operational errors, code issues, outright human idiocy, etc
so a broker, or market-maker, can’t exercise options they don’t own, and OCC can’t assign shorts that aren’t short. this netting process is the sanity check before the final EnA activity is processed by OCC, and then applied and reported to all their participants.
on an expiration day,
(some indexes are wed and fri
most equity are fridays only
there might be something that expires on a monday at this point too...but what we’re talking about here is equity options...)
so on an expiration day, you have the process above for anything that’s not expiring. for expiring options, OCC auto exercises anything ITM (in the money) by .01 or greater (unless they announce prior that a series won’t be, due to reasons like trading halts).
you have the option to not exercise contracts that are ITM, knowing that you have just lost your premium if you do that.
you also have the option to exercise something that is at or out of the money, if you think by taking delivery of the stock position, your desired outcome will eventually manifest itself.
it used to be the case that friday expiration took saturday and sunday to process straight through in order to open up monday in synch with OCC
then they shortened the settlement cycle. now it’s barely any work on saturday, meaning the occ files that brokers reconcile to, are out by sat morning instead of sunday.
so no brokers should be ‘exercising’ options on saturdays. even with 2 day settlement the saturday stuff was mostly to handle errors which were clear to both counterparties (remember OCC is in the middle)
it’s kind of like CNS (continuous net settlement) that NSCC (US stk clearing house) uses for stock, except the open close indicators on trades don’t mean as much for stock.
——
now, all that being understood, brokers handle their customer interaction in different ways.
for example, if you exercise a call or put option during that day, IB will post it immediately
- DR options
- CR/DR stock
- CR/DR cash
some may wait until evening processing.
some may even take your exercise request after 530-6pm, but they aren’t doing anything with it until the next day
it’s been a while, but i think 530pm is the OCC daily cutoff for brokers to submit that T/D (trade date) EnA activity, which is for S/D (settlement date) T+1
StealthP3D
Well-Known Member
Wrong forum. But It sounds like they gave you a bonus extension of 6 months to use the leftovers up and then wiped them clean. You should be thankful for that!
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um...right...got it.
I hope the next time I see $380 is after the 10 way split in 2023.
StealthP3D
Well-Known Member
It's pretty hard to see 13 years out. My crystal ball is only rated for 7.25 years but it's showing $6,000 and change in 2027!
dc_h
Active Member
Interesting that they encased all the wiring, basically version 1.5 of the wiring plan. Better to get the car built a year early, then get every feature completed. I’d expect encasing the wiring reduces wiring assembly time by 75%. They can continue to reduce wiring incrementally, but they’re already reducing assembly costs versus model 3 and can transfer most of those savings to the model 3.
If Tesla had two way charging, how long do you think it would take for people to start charging up at superchargers and then powering their homes?
That would be via paid Supercharging,most expensive than normal utility rates, but great for an emergency...
I don't think any car with free Supercharigng will support V2G.
Artful Dodger
"Neko no me"
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adiggs
Well-Known Member
If you wanted to start a new thread @Boomer19 and post insights into market processes - maybe answer questions people have about the mechanics of how the markets work - that'd be just grand!
I know I've got something right off the top. Shorting stock! I see some of how it works from my POV as a share lender (at least previously, a share lender). I don't even really know what specifically I'd like to know more about - just anything you can add about the mechanics.
One observation I've made (I have no idea if it's true or not) - I've had the sense dealing with Fidelity that they figure out overnight how many shares of a company they will make available for shorting the next day. They might recalc during the day if they've drawn down enough, but I have visions of spreadsheets with calculations making these decisions.
Methinks now is the time to hit the Chinese up for another factory. They're economy suffering, ev's are the future, huge pollution problem there. They kicked out a factory like pez dispensing. Why build anywhere else?
Looks like the story tomorrow will be Tesla can’t afford to pay rent.
We’ll be up another 6% on that haha
We’ll be up another 6% on that haha
Yes, I have done it in the past. And when I've done it (or had calls automatically executed) the message from my broker always says "You bought ..."
Weinstein is acting so superior in this, saying Musk doesn't know anything, that he isn't taking any risks, that he doesn't really want to go to Mars, that it is all just narative to 'make the Moon jealous'. What kind of BS inside joke is that?
Weinstein just likes listening to himself talk, and keeping up his own narcissistic narative. Doesn't want to be compared to anyone with real genius. Full of the condescending smiles, 'We all know how totally right I am about everything'. 'Me and my theory'.
Who is impressed by this?
I like his point that there should be more Elons but we are discouraging them to everybody's detriment.
Unless I misunderstood...
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