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

[redan]

$1680, 7/24.

Yes, they are gone soon. (At least we all hope so, because we all want the stock to start with at least a $2XXX by then.)

 

[Uncle Ron]

TSLA like a Bolero

 

[Artful Dodger]

After-action Report: Fri, Jul 10, 2020: (Full-Day's Trading)

Headline: "TSLA Springs da Bears' Trap"

Traded: $33,974,443,683.91 ($33.97 B)
Volume: 23,338,972
VWAP: $1,455.70

Closing SP / VWAP: 106.23%
(TSLA closed ABOVE today's Avg SP)
Mkt Cap: TSLA / TM = $286.494B / $174.524B = 164.16%​

TSLA 6-mth Moving Avg Market Cap: $110.16B

'Short' Report:

FINRA Short/Total Volume = 57.3% (52nd Percentile rank Shorting)
FINRA Volume / Total NASDAQ Vol = 46.3% (46th Percentile rank FINRA Reporting)
FINRA Short Exempt Volume was 1.76% of Short Volume (56th Percentile Rank)
Highest Naked Shorting Portion since May 05, 2020​

Comment: "Bears wish they'd stayed in Chicago"

View all Lodger's After-Action Reports

Cheers!

 

[juanmedina]

I guess weeklies can pay

 

[Big Time]

Well it was a real fat kid rodeo today

 

[Big Time]

After-action Report: Fri, Jul 10, 2020: (Full-Day's Trading)

Headline: "TSLA Springs da Bears' Trap"

Traded: $33,974,443,683.91 ($33.97 B)
Volume: 23,338,972
VWAP: $1,455.70

Closing SP / VWAP: 106.23%
(TSLA closed ABOVE today's Avg SP)
Mkt Cap: TSLA / TM = $286.494B / $174.524B = 164.16%​

TSLA 6-mth Moving Avg Market Cap: $110.16B

'Short' Report:

FINRA Short/Total Volume = 57.3% (52nd Percentile rank Shorting)
FINRA Volume / Total NASDAQ Vol = 46.3% (46th Percentile rank FINRA Reporting)
FINRA Short Exempt Volume was 1.76% of Short Volume (56th Percentile Rank)
Highest Naked Shorting Portion since May 05, 2020​

View attachment 563136

Comment: "Bears wish they'd stayed in Chicago"

View all Lodger's After-Action Reports

Cheers!

Daaaaaaa bears

 

[JustSaying]

Ernst and Young - Google that name with Wirecard. You'll get it.

 

[TrendTrader007]

I’ve never let it get below 80%, but I guess I need to rethink that.

margin is totally fine as long as you are above 80% and sounds like you got it under good control. when i used to trade on margin i would end up borrowing over 50% and got margin calls all the time. so for guys like me who get addicted to margin it is best to avoid it
right now, and this in not an advice, it pays to be leveraged

 

[Prunesquallor]

Numbers like that are usually because you are "overconcentrated" in your Tesla stock, and they are worried that if it goes down you won't be able to meet a margin call. I believe the threshold is about 80% (I posted more detail back in January/February when it happened to me, but now I've forgotten the exact details.) Options don't count. If the value of any single stock is more than that threshold of the total stocks in your account, they will increase the margin rate just for you. I'm with ETrade too, they increased the margin maintenance requirement last week from 35% to 40% for everyone, but it still shows 40% for me with 57.84% of my stocks in TSLA.

Here's what I did the second time it happened to me. (The first time I asked them what was going on and they told me I had to get below the threshold, so I sold stock to do it. The second time I was smarter.) I called and said "Gee, TSLA went up a lot and now I'm just over the threshold. For obvious reasons I would rather not sell stock just now. This morning I had spare cash, but now I can't buy anything because of the margin call. Can you talk to the people and tell them that if they put it back down, I will buy some other stocks to get below the threshold again." They said sure, and the next morning (or maybe later that day, I can't remember exactly) I actually bought a bunch of ARKK, and magically my margin call went away! And I owned more stock!

I searched ETrade help for margin accounts and found this:

• Requirements based on other Risk Factors - Portfolio Margin requirements at E*TRADE also provide automated requirement adjustments for other risk factors for the positions in the account, in addition to the risks from underlier price movement. This proactive approach helps protect the account from unexpected deposit requirements or liquidation actions, which may occur if these other risk factors are not identified on a real-time basis.
  
  The factors that are considered in calculating Portfolio Margin requirements at E*TRADE are:
  • Quality of hedge
  • Position concentration
  • Implied volatility, time decay, and interest rate exposure
  • Underlier risk (liquidity, volatility, new, etc.)

(My bold above.) I still can't find the actual number though... don't trust my memory. But if you go to your portfolio, and click "margin" (third option across) and it says you have more than, say, 75% in TSLA, you'll know this happened to you. Call them.

Thanks @ggr

I’m pretty hopelessly over-subscribed to TSLA in my E*Trade account (92% as of today). I got the 60% margin equity notice just yesterday (currently at 84%). I’d hate to sell the other stuff (all good performers) and won’t have dry powder to brace up the account until the end of the month.

Crossing fingers until ER/Battery.

 

[JustSaying]

Ernst and Young - Google that name with Wirecard. You'll get it.[
E&Y was sued today? They are guilty already? They have deep pockets.
Let's hang um.

 

[Prunesquallor]

Oh, forgot to mention, if your account is not in a margin call situation, you can just go ahead and diversify a little, which people would say is prudent anyway. Buy some NKLA or something

Bleah I think not. ARKG, ARKF and BPTRX are my main diversifiers. Of course, BPTRX is like 20% TSLA and E*Trade probably figured that out.

 

[StealthP3D]

I hope you sold at a profit. Never worry about selling with a profit.

Not trying to preach, trying to help other's learn:

This is one of the most common and fundamental investing errors of them all. I know it seems like good common sense that this could never be wrong but it's the kind of thinking that leads to a host of investment sins that can decimate your performance as an investor. As a human we need to guard against human "common sense" that impairs our performance. To do this we need to invest from a "first principles" perspective. You have seen how effectively Tesla has used 'first principles' thinking to attack difficult challenges, now put it to work super-charging your performance as an investor!

Investing well is largely a matter of avoiding mistakes that can harm your returns. As a human, we tend to think it matters what we paid for an investment. Except for tax considerations, it doesn't matter. At all. Use first principles, not pithy life "rules of thumb" that have zero significance to your future returns. All that matters is its' current value and it's expected future performance (in terms of risk vs. reward).

This means two obvious things:

Never sell a stock simply because it's worth a lot more than you paid for it and you have "done well". It reduces investors returns to sell for reasons unrelated to future performance. If anything, good past performance tends to be associated with good future performance so by breaking this rule you are accepting a double hit to the chances of future returns.

Never hold a stock because it's worth less than you paid for it. While it's true that if you hold a loser stock long enough, it will often (eventually) come back to what you paid for it, that's not a good reason to hold it. It might not ever come back. And the amount you paid for it is completely disconnected from whether it's likely to perform in a superior fashion. If you buy a stock and you later realize the reasons you you thought you were buying it are no longer valid, and there are no other reasons that indicate it's near-term or far term performance will be superior, dump it ASAP, regardless of price.

Trust me on this, except for tax considerations, the price you have paid for a stock should have zero bearing on whether you buy or sell it. Yet investors get this wrong ALL THE TIME! The truthfulness of this should not even be up for debate it is so obvious. And yet our "humanness" gets in our own way and trips us up without even asking our permission. Because we evolved over over millions of years to survive, not to be better investors. Fortunately, that evolution left us with brains that can see the truth in this, it's just a matter of having the knowledge, the willpower and the desire to act contrary to our nature. I highly recommend it because life is a lot more fun and a lot easier when you have superior investment returns.

The bottom line is you should ALWAYS be very concerned when selling for profit because you want to guard against selling your winners and holding onto your losers. And it's one of the most common mistakes that decimates investor performance and a major reason why dead investors actually perform better than living investors! Dead investors can't sell their winners!

 

[Prunesquallor]

Go by yourself. Wear a mask. Don't touch anything or anyone. And sit in the back row. You'll be fine.

“Back Row Podcast”!!
Edit: I’m too slow. @JusRelax

 

[ggr]

Thanks @ggr

I’m pretty hopelessly over-subscribed to TSLA in my E*Trade account (92% as of today). I got the 60% margin equity notice just yesterday (currently at 84%). I’d hate to sell the other stuff (all good performers) and won’t have dry powder to brace up the account until the end of the month.

Crossing fingers until ER/Battery.

I think you haven't quite understood. You don't have to sell anything. Just buy more of other stuff.

 

[The Martian]

Conspiracy theory. Is it possible S&P committee wants to front run the ER? Next week would be the final chance.

 

[ggr]

Bleah I think not. ARKG, ARKF and BPTRX are my main diversifiers. Of course, BPTRX is like 20% TSLA and E*Trade probably figured that out.

No, I can assure you they don't look into the funds. I bought ARKK back when. Or ESGV is my go-to for a sustainable variant of the S&P.

 

[UnknownSoldier]

Well this was one hell of a week. I really wonder how long this rally will last since we are still 11 days away from the earnings report!

 

[wipster]

Well this was one hell of a week. I really wonder how long this rally will last since we are still 11 days away from the earnings report!

Indeed!

 

[Singuy]

Well this was one hell of a week. I really wonder how long this rally will last since we are still 11 days away from the earnings report!

If it rallies like this every week till earnings than who even need earnings anymore?

Man Tesla's P&D broke wall street. Takes a pandemic to bring out it's colors. As much as I hate you Covid, this is your silver lining.

 

[vikings123]

Conspiracy theory. Is it possible S&P committee wants to front run the ER? Next week would be the final chance.

Something that crossed my mind too, in fact posted in the options thread just a few mins ago. What are the chances S&P funds decided it was going to get too expensive to wait for ER so let’s roll the carpet now and that word got leaked? Probably a very small chance...don’t know if there is a precedent.