$15 mil bearish bet placed on Tesla 30 min before closing bell
$Tesla(TSLA.US$ this option strategy is called a synthetic short. it has nothing to do with synthetic shares. It’s called that because it simulates being short on a stock. It involves buying a put and selling a call to open at the same strike price near what the share price is at the time. whoever open this position will pocket the 7 million from selling the call upfront. When the price of Tesla drops and it’s below 750 at expiration they can buy the calls to close for one cent each and they keep the entire $7 million. As for the put that they buy, As the share price of Tesla drops they can sell the put to close at any time and make a huge profit on that leg of the option as well. Google synthetic short option strategy or synthetic long option strategy if you want to understand more. A synthetic long would be selling a put and buying a call to open at the same strike price instead. Who opened up this position today? I’m fairly certain that it wasn’t retail and it was smart money also known as the institutional side or hedges.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
I block accounts with no name, pic, trading history or posts that try to follow me. Sorry hedges
1641Followers
221Following
10KVisitors
Follow
HippoTrade : what happen if telsa close above 750?
Mike HuntOP HippoTrade: This expires in September
Mike HuntOP HippoTrade: But just like being long on a stock and it falls or being short on stock and rises, you would lose money
HippoTrade : yeah i have read it up, thanks
Musky : Thanks for sharing
Yeen :
M3LANI3 :