Some anonymous person calls WSJ and says "Blue Horseshoe loves Tesla Motors" and hangs up?
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Short-Term TSLA Price Movements - 2013
- Thread starter Robert.Boston
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Some anonymous person calls WSJ and says "Blue Horseshoe loves Tesla Motors" and hangs up?
Nobody is buying those shares, they will buy the call and then sell it during a "pop" to 180 again or during some initial hit.
The price per option is .22 (22.00 per 100 shares) - if it goes up 20% during trading today, they can sell that for a pretty nice little gain. It shows a .07 increase and thus a 33% gain for today. That is far more lucrative than buying shares and waiting for a 7% growth like yesterday. This is called buying "way out of the money options for cheap on a volatile stock" during an upswing with higher volatility ratios.
http://online.wsj.com/article/BT-CO-20131105-707228.html
The price per option is .22 (22.00 per 100 shares) - if it goes up 20% during trading today, they can sell that for a pretty nice little gain. It shows a .07 increase and thus a 33% gain for today. That is far more lucrative than buying shares and waiting for a 7% growth like yesterday. This is called buying "way out of the money options for cheap on a volatile stock" during an upswing with higher volatility ratios.
http://online.wsj.com/article/BT-CO-20131105-707228.html
Mario Kadastik
Active Member
Yes, but those are effectively ponzi schemes because the last guy holding will get them to expire worthless very very likely. So you need to have someone else who picks up those with a gain and in the end someone must hold on or the initial seller will buy to close just to avoid ER risk... Also, might indeed be some shorts securing their back yard in case the stock takes off due to absurdly good results (7k cars delivered, guidance to 60k for FY2014 for example).
marvinat0rz
Member
We had an 8% gain yesterday. That's not an everyday occurence by any measure. Let's not get too greedy here.
This feels like macroeconomic forces at work today. The markets may fear the "taper" of Fed money flow given any news of an uptick in the economy, and luxury autos may have an outsize vulnerability to such tapering.
For what it's worth, I don't see the Fed backing off its monetary stimulus until or unless there is heavy additional fiscal stimulus coming out of Congress, which would be all but impossible given the recent shenanigans. It would require a Democratic House to have a chance, which means I'm betting on no Fed tapering of any meaningful sort until 2016 at the earliest.
Of course if someone has insight on another bit of news affecting TSLA, do tell.
For what it's worth, I don't see the Fed backing off its monetary stimulus until or unless there is heavy additional fiscal stimulus coming out of Congress, which would be all but impossible given the recent shenanigans. It would require a Democratic House to have a chance, which means I'm betting on no Fed tapering of any meaningful sort until 2016 at the earliest.
Of course if someone has insight on another bit of news affecting TSLA, do tell.
i don't get your logic, it's much easier to break 200$ if you start post earning on 180+ then 174
i rather you being not comfortable and we get to 180+ today though i don't see it happen
Higher prices = Higher expectations... Going into earnings at $180 or $185 vs. $175 makes it harder to beat expectations and have a 10%-15% pop.
I felt better about this too, I don't like to see rampant speculation before any numbers are actually released. I much prefer subdued waiting. Have a look at the last trading days from the Q1 and Q2 ER.
Both of these screenshots were post-CC. Q1 was pretty even keeled, and Q2 was actually something of a bad day. For the sake of my heartbeat, I hope we see a totally flat day.
I'm hoping to add a third to my picture sequence so I can frame them or something someday.
Not sure how much the pop matters unless you're waiting for the last instant to buy options. If you're like me, you've got a specific break even point regardless of how the stock gets there.
expectation is for EPS and Revenue not share price . if it worked the way you think it should than amazon would disappoint every earning
Gtoffo
Member
I agree....I think if we stay below 180$ we should have a little more protection against a possible "sell on the news" reaction and a good base to move up from. The fact that the stock isn't just booming blindly makes me hopeful that the market is keeping their expectations a bit more realistic....
weak long won't knock the share down, they want to get the highest price for their shares. it's totaly bears act
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
A seller is a seller, the rest is semantics (the moment you go from long to seller - "weak long" - you in effect made a bearish move).
correct, but yet you can see the trend today, which is to sell on every rise, that's not a weak longs tactics(semantic or not)
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