I will shortly be posting this message on X.com and communicating with SEC Enforcement on their complaints website. Please take a look and send me a PM if you see any errors. I am posting so that you can all understand the primary force that is pushing TSLA down so severely this week. I'm okay with my name becoming publicly known.
@SEC_Enforcement @elonmusk
A flagrant stock manipulation of TSLA has been taking place this past week and it would be easy for the SEC to determine the perpetrator(s). Let me explain.
An unusual trading pattern has occurred with the purchase of huge quantities (over 200K contracts traded each day) on March 12 and 13, 2024, of far-in-the-money put options at the TSLA 220 and 230 strike prices. I assume this strategy is ongoing Mar 14 as well. Those puts are being purchased and then at least 90% of them sold each day. You can confirm the daily selling of these puts by checking the open interest in TSLA options each morning.
If the trader was interested in just making money, that trader would hold the put options as this big dip of TSLA continues. Instead of holding and profiting from those positions, however, the trader has been selling more than 90% of the puts by each day’s end. Such a strategy of buying the puts in the morning and slowly covering throughout the day forces the market makers to do tremendous TSLA selling each morning to delta hedge the puts they’re selling. That selling of TSLA by market makers is the primary reason why TSLA has been doing such deep and quick plunges on these days. The slow selling of the puts is balanced by stock selling as investors worry about TSLA’s trajectory. The net effect is a substantial downward push on the stock price.
The purchase of more than 100,000 far-in-of-the-money put contracts equates closely with the selling of 10 million shares each morning on days when total TSLA volume is between 80 and 100 million shares. Such downward pressure on the stock each morning will clearly push the stock substantially lower.
Thus, this trader is clearly manipulating the stock through these morning sessions of heavy put buying. The slow selling in the afternoon is to free up resources so that the same manipulation can be performed the following day (and the day after that too).
We investors in Tesla stock ask with urgency that you determine who is doing these manipulations, inform them of your scrutiny, and then prosecute. Judging by the resources the SEC is throwing at pursuing every possible charge against Elon Musk it is apparent that the SEC has the personnel available for investigating this clear stock manipulation. We TSLA investors ask that you do the right thing and stop these manipulations now.
I will now provide this complaint through your website as well, complete with contact information.
Sincerely,
Peter Forman
TSLA Investor
Now posted on X.com at:
@SEC_Enforcement @elonmusk
A flagrant stock manipulation of TSLA has been taking place this past week and it would be easy for the SEC to determine the perpetrator(s). Let me explain.
An unusual trading pattern has occurred with the purchase of huge quantities (over 200K contracts traded each day) on March 12 and 13, 2024, of far-in-the-money put options at the TSLA 220 and 230 strike prices. I assume this strategy is ongoing Mar 14 as well. Those puts are being purchased and then at least 90% of them sold each day. You can confirm the daily selling of these puts by checking the open interest in TSLA options each morning.
If the trader was interested in just making money, that trader would hold the put options as this big dip of TSLA continues. Instead of holding and profiting from those positions, however, the trader has been selling more than 90% of the puts by each day’s end. Such a strategy of buying the puts in the morning and slowly covering throughout the day forces the market makers to do tremendous TSLA selling each morning to delta hedge the puts they’re selling. That selling of TSLA by market makers is the primary reason why TSLA has been doing such deep and quick plunges on these days. The slow selling of the puts is balanced by stock selling as investors worry about TSLA’s trajectory. The net effect is a substantial downward push on the stock price.
The purchase of more than 100,000 far-in-of-the-money put contracts equates closely with the selling of 10 million shares each morning on days when total TSLA volume is between 80 and 100 million shares. Such downward pressure on the stock each morning will clearly push the stock substantially lower.
Thus, this trader is clearly manipulating the stock through these morning sessions of heavy put buying. The slow selling in the afternoon is to free up resources so that the same manipulation can be performed the following day (and the day after that too).
We investors in Tesla stock ask with urgency that you determine who is doing these manipulations, inform them of your scrutiny, and then prosecute. Judging by the resources the SEC is throwing at pursuing every possible charge against Elon Musk it is apparent that the SEC has the personnel available for investigating this clear stock manipulation. We TSLA investors ask that you do the right thing and stop these manipulations now.
I will now provide this complaint through your website as well, complete with contact information.
Sincerely,
Peter Forman
TSLA Investor
Now posted on X.com at:
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