We don’t know what actual strike price he aimed for. If he aimed VERY low, it would have cost peanuts, like $1 per option. But I’m just saying, current 6-month put for the strike price equal to the current price costs $100 per option, so for sure he did not pay more than that. I guess what would be a good bet was if he bought the put with a strike of $700 when the price was $900 at the beginning of the year. The price was probably some $30 or less, so he would have made a nice profit.
It’s not entirely unlikely he sold those PUTs already because he would be up a lot (Volatility up + TSLA down). Given that his macroeconomic outlook is hyperinflation, holding USD denominated PUTs long-term wouldn’t make too much sense.
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So just discovered by chance that the iShares CEMG ETF I’ve been investing in recently added a big position in TSLA, which now makes up the biggest portfolio holding (though it’s still unclear to me whether that’s about 5% or almost 10% of the portfolio holdings).
How would I best go about “neutralising” that exposure (without upgrading my IBKR account to margin)?
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How about taking a page out of Burry’s book and buy put options? You could also take a loan with high interest and let it “ride”.
Buying puts and rolling them would be my bet too. Maybe you can find an inverse ETF that suits your needs, in which case, it may also target other stocks that you’d then have to buy to compensate for it.
Though if (as) you strongly think TSLA is a bad investment and one of your choice ETF invests (semi-) heavily in it, maybe you disagree with it’s methodology and would be better served buying another fund? I know it sucks but it’s probably the easiest way to deal with this TSLA problem.
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Hi @Bojack do you know how buy PUT in IBKR? I have never done that and would like to learn how to do it in a safe manner understanding well the risks.
Thanks for sharing!
Anybody else can help? I’ve never done it. But I suggest you google a bit and play with the paper account.
An option contract is always on 100 units of underlying shares. So in this case, depending on the strike price, buying one put would be close to shorting around $60k worth of TSLA stock. I don’t know how big are @San_Francisco holdings compared to his TSLA long exposure, but for many people buying puts would not merely neutralize the position; the net effect would be to be short the stock.
On an unrelated note: do you remember the last time a high executive quit a company and sold $274 million worth of stock just before the announcement of a technological breakthrough? Yep, me neither.
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Is it a manual sale, or a 10b5-1 plan? (That said, I’m fairly sure everyone knows at tesla that the stock is overvalued 
)
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Suffice to say, my holdings in that fund are way below 600k or 1.2K.
I don’t like the discrepancy between the 5% and 10% figures in the portfolio breakdowns. Not even if both are correct and holdings indeed declined by half between 31 May and mid-June.
Neither do I like index constituents going from nowhere to the top (Tesla, Toyota). Sure, stocks can rotate in and out of funds, even (in this case: carefully crafted) index funds. And it may be that companies have increased their EM exposure by business expansion.
But when the 5th and 8th biggest position from the beginning of the year (Unilever and LVMH) have disappeared to nowhere by May and two of the top three constituents (Tesla and Toyota) have come out of nowhere in the same time, it smells kind of …well, let’s say the index methodology is a bit strange - or someone must have fiddled with it in the meantime.
I mean, sure, Tesla opened up in China recently, but Toyota must have had big exposure there before. And so did and still do Unilever and LMVH. And it’s not like either of these stocks’ prices skyrocketed or crashed to account for entering/existing that index altogether.
So yes, I probably will not be investing in that fund anymore (as much as I liked its previous composition).
Quote: “named president of the Tesla Heavy Trucking unit in March. He left the company on June 3”
Only (less?) than three months on his new position, he must not have liked something about that.
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Could also be internal power struggle (e.g. it’s unclear what their previous position was, maybe it was seen as a demotion, or they were gunning to be promoted to a different position?)
I closed all my TSLA positions today @ 623 USD.
Simply because I was thinking of going back to having a completely passive portfolio without following any news or company, so now my only two positions are VWRL and ABTC.
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…and you’re not following news on the Bitcoin price? 
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I guess you need to change username and avatar 
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Why? I am still a Tesla fan and if I had to someday buy a car it would be a Tesla. And I’m still ~1% with VWRL 
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NIO rocketship back at it again <3
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Found a great writeup on autonomous vehicles (from the risk perspective, but Chapter 1 touches a lot on technology), if anyone wants to understand the pieces better:
On the emerging risks of automation: the case for Autonomous Vehicles | Swiss Re
I’d like you to watch Sandy Munro’s harsh opinion on the recent EV bill, with which Joe Biden pays off the Democrats’ debt to the United Auto Workers.
It sums up pretty nicely the whole FUD generated by the mass media and the government, despite Tesla being probably the only US company who can rival the Chinese. Slowing Tesla down, just to give a chance to the failed carmakers of the US. No, but of course there is no patriotic strategy here, it’s plain corruption.
Same shit like the EU rules for Autopilot… limited steering angles & speeds my ass.
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Well my exit at 623 was not the best move, but i’m bad in timing the market 