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

[mongo]

Perhaps a question for a more options-centric thread, but I think it's appropriate here.

Why is there always such a massive battle over certain options strikes right around expiration? I can understand having a put position at $650, but why not sell it earlier in the day rather than fight what looks like an expensive battle to simply hold $649?

Are hedge funds buying up tons of $650p over the last few days til they hold a ton of them? Are they able to do this so it pays off big if they can just get TSLA to close at $648? I guess I just don't see how a dollar or two is worth fighting over since at execution the contracts are only worth maybe $200 in real net cash.

Probably too complicated to explain briefly, but can someone illustrate the motivations of the short side guys who are clearly fighting for their lives at $650 this afternoon?

Those that wrote/ sold the contracts originally need to either buy them back (potentially at a loss) or get the stock price to move such that they expire out of the money. If they can't get them to OTM, less in the money is still better.

Those that bought them may sell early for a profit rather than wait and exercise.

 

[Singuy]

Huh, bulls trying to save the S&P

 

[henchman24]

Huh, bulls trying to save the S&P

Seems like a bottom fishing attempt. If this is the bottom, they look like geniuses. If it isn't, it was a worthwhile gamble.

 

[Everett Ruess]

Seems like a bottom fishing attempt. If this is the bottom, they look like geniuses. If it isn't, it was a worthwhile gamble.

Apple green

 

[NicoV]

The good old days

Yeah, but it needs to stay at this level for 6 months so that IV goes down and you can buy 2-year ITM leaps with less than 10% time value.
Worked well for me a couple of years ago.

 

[elasalle]

Passive funds follow the index and beta
Hedge funds produce Alpha and manipulate the beta
Create volatility.. rinse repeat

Is this how things work?

 

[henchman24]

Apple green

Would signal to me it won't be successful.

 

[M|S|M MYP]

Would signal to me it won't be successful.

Could be just shortze's closing out Put's and day trades.....Is it Monday yet?

 

[kabin]

From video analysis from different videos at the Giga TX -
Seems to be 160 model Y's produced and shipped (per day) so far this month at Giga TX - I do not know if they are running Saturday and \

That same pack of MYs was sitting on the distribution lot for the better part of a week. It's hard to know what Austin's MY daily production is but it seems to be much less than 100/day.

 

[Drumheller]

Yeah, but it needs to stay at this level for 6 months so that IV goes down and you can buy 2-year ITM leaps with less than 10% time value.
Worked well for me a couple of years ago.

If that happens, please consider making a very direct post informing people it is time to buy those leaps. Thank you.

 

[Curt Renz]

Dow Jones Industrial Averages closes up nearly 9 after having been down over 600.

S&P 500 closes barely green after having been down 90.

 

[wipster]

$663.90... could have been worse!

 

[bkp_duke]

QQQ down 0.31%
TSLA down 6.42%

An approximate 20X multiplier . . . manipulators had their day for sure today.

 

[Iain]

Some moron(Dan) was just on CNBC saying he wouldn't invest in Tesla because it's price is based on a cult leader and he's unravelling. So much for evaluating a company on it's fundamentals.

 

[verystandard]

I follow this guy to get an idea of what is going on in the dealerships. Looks like buyers have finally had enough on one segment of the market.
Only a matter of time before the manufacturer’s who are relying on large margins from higher priced ICE vehicles get into trouble.

https://twitter.com/x/status/1527729707357200385

I don't think Tesla factory will sits empty even if recession hits, as imagine especially GIGA Indonesia will produced recession proof $25k Tesla barebone with basic plastic chairs (Small/Economical/200 miles range). There are still lots of tricks up at the sleeves depends when Tesla wants to pull it out at the right time

PS: For your information. My wife don't own a Tesla yet and she constantly mention that if there is a smaller size Tesla (She drives Prius C), she will be the first to line up for it

 

[wipster]

It's a rumor, not an official announcement with details (start date, site selected, etc. etc.). I think that's the problem.

I was just going to post the same thing and you beat me to it. Hopefully the SP will move up a bit when Tesla or Elon confirms it.

 

[ZeApelido]

https://twitter.com/x/status/1527748229470646272

 

[Singuy]

Global freight index went up 3% on average last week.
Top mover is China/East Asia to North America West Coast which went up 9%, suggesting production is ramping up again out of China.

 

[Todd Burch]

It's about time.

 

[wipster]

Some moron(Dan) was just on CNBC saying he wouldn't invest in Tesla because it's price is based on a cult leader and he's unravelling. So much for evaluating a company on it's fundamentals.

See why I don't subscribe to CNBS? I've already broke the screen on one HDTV, don't need to do it again.