A Possible Explaination For The Surge In Tesla Stock

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Thread: A Possible Explaination For The Surge In Tesla Stock

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    News Contributor Premium Member Perian's Avatar
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    A Possible Explaination For The Surge In Tesla Stock

    Bloomberg.com
    February 4, 2020

    What’s better than Tesla surge? The near 10,000% potential winnings accruing to traders who held out-of-the-money call options.

    Shares in the electric-car maker have soared more than 60% in six days to top $900 for the first time. Options traders who held calls that pay out at $800 have done even better, after they jumped from 25 cents to close at $24.22 Monday. The $1,000 calls rose from 2 cents to $1.98, a surge of 9,800%.

    The fortunes allegedly minted via Tesla options have, naturally, corresponded with a surge in their popularity. The 10-day average call option volume more than doubled since early December, as has the underlying security. On Monday, 1.8 Tesla calls traded for every S&P 500 call, the biggest gap on record according to data compiled by Bloomberg.

    There’s an element of circularity at play, but this activity may be contributing to the rally in the shares. When a trader buys a call, the dealer who sells it will typically buy a certain amount of stock in the underlying to offset their exposure. If the shares continue to rise, dynamically managing that hedge can entail increasing purchases.

    “So, now you get the picture, that every day at the open lately, folks are grabbing call options quickly and driving the stocks/indexes higher,” writes Scott Murray of Volatility Analytics. “It is much easier for this kind of market to be unhinged, as long call holders’ corresponding dealer position is long the underlying.”













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    Re: A Possible Explaination For The Surge In Tesla Stock

    “So, now you get the picture, that every day at the open lately, folks are grabbing call options quickly and driving the stocks/indexes higher,” writes Scott Murray of Volatility Analytics.
    Tesla shares just crossed $900.

    Bitcoin looked good at $20,000.

    Just saying.

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    Re: A Possible Explaination For The Surge In Tesla Stock

    You getting in line to short it now? This stock has defied all logic for a very long time, and while I think we can all agree it is overvalued, a time frame for the price correction is impossible to predict at this point.
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    Re: A Possible Explaination For The Surge In Tesla Stock

    What's happening here is not unique to Tesla--you can see and say the same thing to the whole stock market. Over priced, over hyped, waiting for a crash, but, don't know when.
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    Re: A Possible Explaination For The Surge In Tesla Stock

    Germany will kill off the internal combustion engine new car sales in 9 years time, and now the UK are doing the same all ICE hybrids and vans included.

    Tesla need to start making vans as well there is a massive ICE market thats about to die out, EV vans will be needed in places like Europe where the market is massive.
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    Quote Originally Posted by Oldsmobile stopped View Post
    Germany will kill off the internal combustion engine new car sales in 9 years time, and now the UK are doing the same all ICE hybrids and vans included.

    Tesla need to start making vans as well there is a massive ICE market thats about to die out, EV vans will be needed in places like Europe where the market is massive.
    You must love living over with all the socialists that tell you what to drive, time to take that Capri for a squirt and remind everyone how much fun cars should be to drive.

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    Re: A Possible Explaination For The Surge In Tesla Stock

    Only in America would Torys be called Socialists, lol.
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    Re: A Possible Explaination For The Surge In Tesla Stock

    Quote Originally Posted by jpd80 View Post
    You must love living over with all the socialists that tell you what to drive, time to take that Capri for a squirt and remind everyone how much fun cars should be to drive.
    Probably a huge surge in ICE car sales just before the deadline. In Canada/US V8s will surge in price.
    I really hope they make them as affordable as a cheaper no options ice car, otherwise it is really socialism.
    So far, they are all bringing out luxury cars at luxury car prices.
    Give me a low options, cloth, 16" wheels Corolla-like EV for under $20k and I will buy one.

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    Re: A Possible Explaination For The Surge In Tesla Stock

    Quote Originally Posted by Perian View Post
    Tesla shares just crossed $900.

    Bitcoin looked good at $20,000.

    Just saying.
    Its all Day Traders/Options/Short/Bots. Tesla is basically an online Casino right now, the stock price (in either direction) has no direct correlation to success or failure of the company.
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    Re: A Possible Explaination For The Surge In Tesla Stock

    Hopefully it splits a few times because I can’t afford to buy anymore shares now LOL!

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    Re: A Possible Explaination For The Surge In Tesla Stock

    Quote Originally Posted by canadian.bacon View Post
    Probably a huge surge in ICE car sales just before the deadline. In Canada/US V8s will surge in price.
    I really hope they make them as affordable as a cheaper no options ice car, otherwise it is really socialism.
    So far, they are all bringing out luxury cars at luxury car prices.
    Give me a low options, cloth, 16" wheels Corolla-like EV for under $20k and I will buy one.
    Hyundai Ioniq is 35K CDN and MOST "scratch" 50K easily even a LEAF is 40+

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    Re: A Possible Explaination For The Surge In Tesla Stock

    Quote Originally Posted by richmond2000 View Post
    Hyundai Ioniq is 35K CDN and MOST "scratch" 50K easily even a LEAF is 40+
    I would rather walk than drive a Leaf.

    I paid 37.6k CDN for my '19 Night Edition Ram 1500 Classic Crew with the Hemi (Chevy wanted 53k before taxes and destination for a base TrailBoss at the time)
    So far, the price of the EVs negates any savings in gas. The truck will have a much better resale value compared to both EVs. The Leaf's residual value is atrocious.

    Like I said, i don't want 10" screens and all the "cross lane warning" BS. I can drive myself and keep the car on the road just fine. Give me cloth interior and a working radio and I am good. Just change the engine and keep the price the same, till then ICE ICE BABY !

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    Re: A Possible Explaination For The Surge In Tesla Stock

    Tesla stocks will probably crash much faster than it has gone up. Something is not right about that stock.

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