3 ms·
he's probably using puts
by arthurcolle 6y ago
he's probably using puts
- sokoloff 6y agoNo. I'm outright shorting the shares. Implied volatility is so high now as to make buying options fairly unattractive for medium and long-term bets.
- MuffinFlavored 6y agoSay you want to short $10,000 worth of TSLA shares, what kind of margin interest rate are you paying? Is it 8%/yr?
- sokoloff 6y agoI've held the shares short for short enough time that I haven't gotten tagged with any charges yet to give you actuals. The interest is super-low in any case, so when you're shorting shares that have moved parabolically, you're probably not worried about whether the borrow is 1% or 4% per year (or at least I'm not).
- arthurcolle 6y agoYou could be using spreads to hedge out the vega risk, not a huge deal.