The Blue Owl
Endangerous Herbivore
It was Joe Terranova. I saw him live and quasi-transcribed it as it happened. CNBC posted a clip of that segment on their website, but it did not include that particular exchange.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
- Status
This falls into the category of postings our esteemed moderator warned about. We have no idea of the details of any such mechanism, so we should avoid making pronouncements about how they would work. I have no idea, and you don't either.
yes that’s what i was thinking, i haven’t seen fidelity change since 6/30 and i don’t think we’ll see the next one until 9/30
ValueAnalyst
Closed
This summary is wrong. The volume spike of September 15 was accompanied with a 50% surge in the stock price in the following days, so it clearly is not related to Lehman debacle. Also, why did you skip the one-week period, just before the squeeze, when the stock halved?
Krugerrand
Meow
I’m not a fan of the exterior design of that vehicle he was last involved in. Thankfully, he reports to Franz.
Hmm interesting, not sure I've got my head wrapped around that. So you're saying they basically get turned into short-term options? Shouldn't all the leaps have tanked then since most of their premiums are now moot assuming it goes private within months?
I'm sorry for raising some fear, but I have to ask.
The last corner legally devised (outside of Porsche's) is Piggy Wiggly. Shorters wanted to drive down Piggy Wiggly's stock. The owner took it upon himself and took out a large loan and devised a clever way to create a corner on the shares to screw the short sellers. Everything went according to plan, except the exchange decided to save the short sellers of a short squeeze by temporarily suspending the rule that shorts only have 2 days to buy back their shares, and allowed them 5 days to give them more time to find sellers. This caused a much softer short squeeze that prevented him from setting the price to sell to shorts, which financially ruined the owner.
We all know Wall Street does not play fair, and will protect their own even if it means bending or outright breaking laws. If a VW like short squeeze happens, shorts can potentially lose 50+ billion, and will bankrupt many firms on the street. Do you think there's a chance that Wall Street will find an illegal way to save the shorts from a short squeeze?
The last corner legally devised (outside of Porsche's) is Piggy Wiggly. Shorters wanted to drive down Piggy Wiggly's stock. The owner took it upon himself and took out a large loan and devised a clever way to create a corner on the shares to screw the short sellers. Everything went according to plan, except the exchange decided to save the short sellers of a short squeeze by temporarily suspending the rule that shorts only have 2 days to buy back their shares, and allowed them 5 days to give them more time to find sellers. This caused a much softer short squeeze that prevented him from setting the price to sell to shorts, which financially ruined the owner.
We all know Wall Street does not play fair, and will protect their own even if it means bending or outright breaking laws. If a VW like short squeeze happens, shorts can potentially lose 50+ billion, and will bankrupt many firms on the street. Do you think there's a chance that Wall Street will find an illegal way to save the shorts from a short squeeze?
Last edited:
At this point it is pretty much a binary issue (as someone posted up thread).
If Elon has all his ducks lined up with documents dated pre-8-7-18, illustrating the secured funding--no harm, no foul. SEC will close the inquiry and the shorts will be scorched. Oral assertions may not suffice.
Even if there is any hair on how secure the funding was, the SEC may well decide a slap on the wrist is the expedient resolution.
However, do not be so confident that a fine is "the worst that will happen." Evidentiary standards for discretionary regulatory criminal and civil enforcement are stricter than in civil litigation and the adversarial lawyers (often on contingency) are far more aggressive. Anyone who has been a putative beneficiary of the civil ligation that piggy-backs off federal regulatory actions knows that, while the terms of the federal Settlement Agreements may be sealed, the discovery leading up to those resolutions may be subject to FOIA and is often a fertile precursor for more penetrating Interrogatories or Requests for Production/Admissions.
It's entertaining what ever ensues. Just do not bet more than you can lose (loose).
TLDR: hedge in either direction.
Last edited:
Wall Street will always find a way to protect their own. How many firms failed in 2008 before the government stepped in?
https://www.theocc.com/webapps/infomemos?number=33480&date=201310&lastModifiedDate=09/13/2014+09:49:55
yes. the link is how the OCC treated dells options when they did their deal
the time value portion of the premiums on the leaps may decrease but we don’t know the effective date of tesla event yet so it’s hard to tell by how much
ZachShahan
Active Member
Krugerrand
Meow
I’m not privvy to any articles or videos that everyone else isn’t. But I do understand human behavior better than most.
I don’t 100% support everything Elon. What I choose to do is keep my criticisms of the man and company to myself. Having not walked in his shoes, that’s only fair.
Maybe, maybe not.
For those who find me off-putting, condescending or any other non-desirable personality trait, please exercise your right and ability to scroll past and ignore me. In return as a courtesy, I’ll make a note not to further engage you.
That is true. I don’t understand what point you’re trying to make. Is it that because the forum is mostly pro-Tesla and huge Elon fans that I/we should go out of my/our way to be con-Tesla and anti-Elon?
You can PM to continue the discussion if you want.
This is exactly the premise of the trade thread I posted on here a couple of days ago. Link at the bottom.
Long dated leaps (jan 20) are trading at a significant premium to jan 19 leaps. You can buy 370 strike jan 19 calls and sell 400 strike jan 20 calls for a nice net credit (!!!). When the option is accelerated, lets say to Jan '19, you would end up with a vertical spread that you can sell or hold on till expiry to make $30. This trade also requires very limited portfolio margin if are already long TSLA in the same account.
You get paid for both putting on and closing out this trade, if the deal works out.
I started the discussion thread on it couple of days ago here.
Go private options strategies
Krugerrand
Meow
jhm
Well-Known Member
Ok, the Dell example sounds like one were the cash out price was too hig, unless it was a cash only deal. Did it include the option of private shares, or was it pure cash out?
well they bought back the shares, delisted, and then went private
Dell Completes Go-Private Transaction
but i’m not sure any common stock holders were able to gain access to dell private shares!!
so maybe not the best comparison. i really wonder how they are going to do this, they basically have to segregate eligible holders who will be taking the private share option. once those are accounted for, the rest should be straightforward
ZachShahan
Active Member
So, just to be extra clear:
No one here has any clue what the big shareholders have been doing [edit: in the past few days] as far as buying & selling, right?
Last edited:
well funds report quarterly and insiders must be reported immediately. i usually check bloomberg every once in a while.
to answer for myself, no.
i didn’t even see the saudi thing filed yet (maybe they don’t have to though)
- Status
Similar threads
- Locked
- Locked
- Locked
- Poll
