You're right about this... we can check by looking at the open interest on high-priced call options. (Some might be held by short-sellers who are hedging their losses, but the OI would still tell us how much stock the market makers needed to hold to hedge.)A lot of people wondering who is selling now at these prices. Sounds insane with a 420 offer on the table.
Let me speculate a bit...
A lot of leveraged longs stated that they are exiting their long-term high price call options, as those are losing value (should go to 0 if their date/price is beyond the deal closing time/value). Now, we can assume most of those call options were written and sold by MMs. At the time they sold them, they probably bought some shares to hedge the option sale, they probably do not risk naked options. Now, when the options are bought back, they can sell the shares (at some profit as the SP is now higher). This is done by algobots, solid general logic, making profits so why not ? Except, this time there is a looming 420 offer on the table, so it would make sense to hold them, but there is no human oversight and the bots are not programmed to take into account twitter-rumors
So, there, you do not need short sellers or stupidity to explain selling pressure below 420...
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I agree with this. Instead of burning the shorts, he burnt some of the new longs who got excited and bought the last couple of days. He has also totally screwed up the options markets. The options premiums were already wild, now they have crazy spreads.
You mean if anyone *thinks* Elon's tweets are...
Right? Because you said the opposite...
Only for shareholders who cannot stay in private Tesla. The 420 is irrespective of the true share valuation of the private entity.
For those traders selling, yeah the damping was not favorable. Although this may be presenting an opportunity.
Gee , any major secure funder buyer at 420 would surely be a buyer at 355,
The reward to risk ratio is getting very favorable.
The reward to risk ratio is getting very favorable.
Elon definitely wants to go private, he's said so for 16 years.
If all the forms are filed correctly and then Elon decides not to go private because *the stock price has gotten too rich for his financiers*, well, then, that's just fine. But if the stock price is cheap enough, I'm quite sure he's going to do the go-private deal.
ZachShahan
Active Member
Hmm, Credit Suisse has been one of the most bullish on cleantech over the past several years.
No, they don't. Look, have you ever actually gotten a line of credit against stock from a brokerage? I have. THEY DON'T ASK
I don't think Musk has been wanting to go private since *before* the IPO...
You’re forgetting that the Tesla brand keeps getting trashed by the financial press by shorts. Remove the shorts, you remove the spurious negative press. This absolutely helps the company.
Also, from a financial engineering point of view, this is a great way to flush out short term shareholders and replace them with long term investors. I would be surprised if this privatization didn’t also have some extra investment money thrown in to help Tesla expand more quickly.
Heh. He wanted to *stay* private, I should have said...
MTL_HABS1909
Active Member
Many on this board will rate my other post “disagree” because they only think of themselves. However, many people are in my position and won’t be able to hold private shares.
You won't remove the negative press from Big Oil, Big Auto, the UAW, etc., but you do remove some of it.
An explicitly stated goal of Musk.
Not if he asks for $20M, but you better believe he is not going to get $20B without some serious explaining.
Joe F
Disruption is hard.
Ooops. Thanks. Corrected. This thread has left me shaking my head too much and there's not enough coffee to bring me back from the Walking Dead state.
If Charlie munger could convince warren to throw money at BYD, because
The guy running it is a genius, then I sure hope he is onto this one.
“Put me down for 3 billion “. I would suggest
Lots of oil money might want to hedge themselves too.
The guy running it is a genius, then I sure hope he is onto this one.
“Put me down for 3 billion “. I would suggest
Lots of oil money might want to hedge themselves too.
Man I lol at people who thinks Elon will have a hard time taking Tesla private. Lets look at his historical wants.
1. Wants to change banking via the internet..he got it
2. Want to build reusable rockets while the space industry is dying..he got it.
3. Want to accelerate the advent of sustainable energy..he got that too.
So if he really wants to take Tesla private..that's like wanting a club sandwich compared to his other wants. I bet Jesus will show up if Elon wants the second coming next Tuesday.
1. Wants to change banking via the internet..he got it
2. Want to build reusable rockets while the space industry is dying..he got it.
3. Want to accelerate the advent of sustainable energy..he got that too.
So if he really wants to take Tesla private..that's like wanting a club sandwich compared to his other wants. I bet Jesus will show up if Elon wants the second coming next Tuesday.
Page - Hey bank, can I have 20B in cash, here's 30B in stock as colleteral.
Bank- uh, yes?
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