There is no requirement to report short interest holders, so we have no way to be sure who is behind that $10 Billion... But yes, your theory lines up with Jack's. (See my previous post.)
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
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There is no requirement to report short interest holders, so we have no way to be sure who is behind that $10 Billion... But yes, your theory lines up with Jack's. (See my previous post.)
humbaba
sleeping until $7000
yeah, I didn't feel like pulling the numbers up. That's why I wrote "buffer". The amount of the short +25% (or more, at the discretion of the broker).
More, when I said "tied up" that was smoothing over things a bit as well. Technically, "mark-to-market" include the interest which is a realized loss and does not include the buffer.
edit: actually, there's a difference between what is required when opening a short and then to maintain. Something like 40% to open and 25% to maintain. So a $100 short requires $140, but is then good up to $112.
StealthP3D
Well-Known Member
With Christmas on a Wednesday, I imagine it will be a slower than average week. That doesn't mean things can't happen.
Funds need to do their end of the year window dressing and with Tesla performing so well this quarter many will want to add it to their holdings. I'll make a WAG and predict that TSLA closes out the year above $420.
Congrats to all longs for a great week!
Yes. And during next week, more short sellers will likely be getting margin calls.The light holiday week trading volume may make it difficult for them to cover at what to them might seem to be reasonable prices.
Must be disappointing that
1/22 790c were selling for $19 today
Just a couple of weeks ago @SpaceCash jumped on 1/22 640c and they were like $22 then.
Can't grab a bunch for a buck anymore like some of those 1/21 600+s were going for.
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Exactly. The cost of doing business.
AND isn't it also a very nice datum for weekly charts?
It's a Triple Witching quarterly options expiration day. There would have been a lot of Market-On-Close orders.
Investopedia: Market-On-Close Order or MOC Definition
Yes definitely it's big business. I'm in the commercial industrial side now and there's lots at stake.
Just cashed out my $420 2021 strikes yesterday after a 700% gain, looking for the next opportunity, placed the money into Tesla common stock in the meantime (funny how shorts are having to buy Tesla stock to cover gains, while bulls using options are ALSO buying stock after successful option plays. Such a wonderful confluence of buying.)
Those new strikes appeared within hours of my post above. I don't know who decides when and what strikes are opened up, but I presume its purely supply and demand based and the big market makers perhaps didn't realise what sort of demand there was for strikes this high, until someone perhaps reading this thread decided to open some? If true, I COULD REALLY DO WITH SOME $1000 2022 STRIKES PLEASE
The ROI is more than just cost savings vs gas/other traditional energy. Can also be business interruption which can be significant depending on industry, reboot/wastage from possibly milliseconds of downtime. Battery switchovers come online faster than having to ignite a flame.
humbaba
sleeping until $7000
i really shouldn't have been trying to answer short selling questions, my head is too thick.
The maintenance requirement is, as already mentioned, 25%. You have to pay interest (because it is a margin account). You also have to pay interest to the owner of the share you are borrowing, which is why people talk about the rate. An easy to short stock has low borrow cost. If the short position gets too large for the supply the rate will go up. Shorts do not have to report their positions regardless of size. The FINRA data is nearly useless as every block of trades with a single short bundled in marks the whole block of trades as short. The two-week-old only updated twice monthly short interest data is neither timely nor detailed. In order to short you must have a share to borrow, but market makers are exempt from this requirement because it would be too burdensome to make them do so. They have (2 days? 3 days?) to find a share to borrow if they decide to keep the position that long. Failure to do so is results in a failure to deliver notice. But these are unlikely to be accurate as there is no meaningful audit mechanism.
All of which makes short trading opaque and easy to manipulate and commit fraud with. Which is why I refer to the Shortseller Enrichment Committee as the SEC.
What I'm not seeing is the 40% to initiate a short. Maybe a migraine-induced memory.
Short Selling Definition
The maintenance requirement is, as already mentioned, 25%. You have to pay interest (because it is a margin account). You also have to pay interest to the owner of the share you are borrowing, which is why people talk about the rate. An easy to short stock has low borrow cost. If the short position gets too large for the supply the rate will go up. Shorts do not have to report their positions regardless of size. The FINRA data is nearly useless as every block of trades with a single short bundled in marks the whole block of trades as short. The two-week-old only updated twice monthly short interest data is neither timely nor detailed. In order to short you must have a share to borrow, but market makers are exempt from this requirement because it would be too burdensome to make them do so. They have (2 days? 3 days?) to find a share to borrow if they decide to keep the position that long. Failure to do so is results in a failure to deliver notice. But these are unlikely to be accurate as there is no meaningful audit mechanism.
All of which makes short trading opaque and easy to manipulate and commit fraud with. Which is why I refer to the Shortseller Enrichment Committee as the SEC.
What I'm not seeing is the 40% to initiate a short. Maybe a migraine-induced memory.
Short Selling Definition
A vague memory tells me that something like that may have been what caused high scrap rates at GF1 for a while, delaying the ramp of Model 3. Also other mistakes in the factory before the Main Coder Man slept over and broiled marshmallows on the roof. Or I could be dreaming (already).
sundaymorning
Active Member
At this point the Tesla shorts have burned through more cash than Tesla’s entire model 3 ramp. Yikes, now that’s what I call cash burn. Instead of creating a viable product that people love with the those billions of $$, shorts have created something much more valuable to Tesla supporters—a short squeeze. How long will this drag on?I wonder how shorts can raise equity to keep their dialogue afloat? I mean, technically speaking shorts can pull equity out of their homes like some of us here and go “all in” if they’re so convince about Tesla being a fraud. Any shorts willing to take this gamble?
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One theory is that the largest ones do show the money. They write it off as an expense to keep receiving billions of tax payer money subsidizing oil and gas and keeping the legacy car business running as if it wasnt close to collapse. Any slowdown in teslas development was worth diverting a fraction of the cash into the moneypit of shorting tesla and spreading FUD to keep people from converting too fast.
Dipping my idiot toe in water,
Does buying 1 ?call? of that mean I suspect TSLA will be _higher_ than $1,000/share by 2022?
How much extra ca$h would I have to pony up to exercise that call if I owned it?
To actually own those shares (pre 7:1 split)
So, options day
Unless something apocalyptic happens, gazillions of puts expiring worthless and a LOT of call holders making serious money:
View attachment 490530
EDIT: let me repost the image:
If I read this correctly, ALL PUTS EXPIRED WORTHLESS!
PS: forgive my ignorance, but how can you buy PUTs that are "bullish"? There are some at ~400 that were probably bought before we surpassed 400, or I'm missing something?
This video is pretty aligned with how I'm thinking about 2020... seems like its going to be a killer year for Tesla.
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