1/7
The $TSLA community has been of the opinion that managers of funds benchmarked to the S&P 500 would all jump at the opportunity to front-run the inclusion.
The $TSLA community has been of the opinion that managers of funds benchmarked to the S&P 500 would all jump at the opportunity to front-run the inclusion.
2/7
The woman from this CNBC clip shows that many fund managers may understand TSLA so poorly that they believe the current valuation is nuts, and so they might prefer to not buy TSLA until after their performance is actually benchmarked to it, so as to not risk buying too high.
The woman from this CNBC clip shows that many fund managers may understand TSLA so poorly that they believe the current valuation is nuts, and so they might prefer to not buy TSLA until after their performance is actually benchmarked to it, so as to not risk buying too high.
3/7
TSLA's options market and delta hedging mechanisms are as strong as ever. The table in this link shows that the delta hedging requirements for market makers increased by nearly 30M shares (20% of float) since the stock split announcement.
tsla-oi.s3.amazonaws.com/index.html
TSLA's options market and delta hedging mechanisms are as strong as ever. The table in this link shows that the delta hedging requirements for market makers increased by nearly 30M shares (20% of float) since the stock split announcement.
tsla-oi.s3.amazonaws.com/index.html
4/7
This data assumes that market makers are short 100% of options open interest. This is of course not the case, so in reality the number is lower than 30M, but it still indicates market makers had to do significant buying to stay delta neutral. Likely as much as 10M+ shares.
This data assumes that market makers are short 100% of options open interest. This is of course not the case, so in reality the number is lower than 30M, but it still indicates market makers had to do significant buying to stay delta neutral. Likely as much as 10M+ shares.
5/7
Although nothing is ever guaranteed in the stock market, I'm now highly confident that, barring terrible macros, S&P inclusion will permanently revalue TSLA @ $2,000+. Barring crazy things, I think $2,000 is likely a short term bottom for the stock.
Although nothing is ever guaranteed in the stock market, I'm now highly confident that, barring terrible macros, S&P inclusion will permanently revalue TSLA @ $2,000+. Barring crazy things, I think $2,000 is likely a short term bottom for the stock.
6/7
I also think the chance of a revaluation to $3,000+ is more likely than I thought it was when I wrote my S&P 500 blog last month.
teslainvestor.blogspot.com/2020/07/teslas…
I also think the chance of a revaluation to $3,000+ is more likely than I thought it was when I wrote my S&P 500 blog last month.
teslainvestor.blogspot.com/2020/07/teslas…
7/7
Regardless, I still see 10x returns from here for TSLA investors over the next decade. Potentially as high as 20-30x. I explained my long term TSLA investment thesis in this blog post at the end of last year.
teslainvestor.blogspot.com/2019/12/my-tes…
Regardless, I still see 10x returns from here for TSLA investors over the next decade. Potentially as high as 20-30x. I explained my long term TSLA investment thesis in this blog post at the end of last year.
teslainvestor.blogspot.com/2019/12/my-tes…
I just noticed the sound appears to be missing from the CNBC clip. It's on YouTube called "Tech is back: Kevin O'Leary". Watch from 1:30 to 1:50.
