Plus: sell the corresponding calls.

R.E. Boss


> -----Oorspronkelijk bericht-----
> Van: Chat <[email protected]> Namens Devon
> McCormick
> Verzonden: zaterdag 1 februari 2020 01:12
> Aan: Chat forum <[email protected]>
> Onderwerp: Re: [Jchat] Introducing J to Financial & Actuarial Students
> 
> It seems trivially easy: buy out-of-the-money puts, based on today's price,
> expiring shortly after that date.
> 
> On Fri, Jan 31, 2020 at 6:09 PM Jose Mario Quintana <
> [email protected]> wrote:
> 
> >  > Yes, I lost a bit dumping it when it started to take off.
> >
> > Oh well, it could have been a lot worse.
> >
> > Incidentally, recent news confirm reports from last year that the
> > legendary investor, Warren Buffett, which was mentioned in the thread,
> > was (among other investors) conned and "invested" $340M in a shady
> > "green" company,
> >
> > A couple pleaded guilty to scamming Warren Buffett as part of a $1
> > billion Ponzi scheme
> >
> > https://markets.businessinsider.com/news/stocks/couple-admit-
> scamming-
> > warren-buffett-1-billion-ponzi-scheme-2020-1-1028844728
> >
> > This is not the first giant "green" company that bites the dust
> > (Solyndra and A123 come to mind); but, to my knowledge, is the only
> > one so far where the upper management has pleaded guilty of criminal
> activity.
> >
> > Back to shorting securities... This is a tricky business.  An
> > ex-colleague illustrated some of the issues by posing what he called "An
> Angel problem."
> >  An (infallible) angel makes an apparition and tells you (and only
> > you) today, for example, that the closing price of Tesla on July 31,
> > 2020, will be exactly $345.67.  What would you do?
> >
> > His point was that, even with (partial) exact information in one's
> > possession, the problem is far from trivial.  Then again, in principle
> > (that is, if one does the homework properly), considering including
> > short positions in one's portfolio cannot hurt.
> >
> >
> > On Thu, Jan 30, 2020 at 8:03 PM Devon McCormick
> <[email protected]>
> > wrote:
> > >
> > > Yes, I lost a bit dumping it when it started to take off.
> > >
> > >
> > > On Thu, Jan 30, 2020 at 7:36 PM Donna Y <[email protected]> wrote:
> > >
> > > >
> > > > >> Tesla short sellers lose more than $1.5 billion in one day as
> > > > >> stock
> > > > skyrockets on earnings
> > > >
> > > > Donna Y
> > > > [email protected]
> > > >
> > > >
> > > > > On Jan 30, 2020, at 7:22 PM, Jose Mario Quintana <
> > > > [email protected]> wrote:
> > > > >
> > > > >> Full disclosure: I have a short position on Tesla.
> > > > >
> > > > > I trust you dumped your short position in a timely fashion:
> > > > >
> > > > > July 25 $222.82; today $640.81
> > > > >
> > > > > :)
> > > > >
> > > > >
> > > > >
> > > > > On Thu, Jul 25, 2019 at 1:31 PM Devon McCormick
> > > > > <[email protected]>
> > > > wrote:
> > > > >>
> > > > >> Actually, "Ponzi scheme" is inaccurate - it's more of an
> > > > >> accounting
> > > > scam.
> > > > >> Full disclosure: I have a short position on Tesla.
> > > > >>
> > > > >> On Thu, Jul 25, 2019 at 1:23 PM Devon McCormick
> > > > >> <[email protected]
> > >
> > > > > wrote:
> > > > >>
> > > > >>> Funny you should mention Buffet when Berkshire Hathaway has
> > > > >>> lately
> > been
> > > > >>> under-performing the S&P 500:
> > > > >>> https://www.fool.com/in
> > > > > vesting/2017/07/23/an-interesting-chart-about-berkshire-hathaway
> > > > > .aspx
> > > > >>> .
> > > > >>>
> > > > >>> Musk is even funnier - he's basically running a Ponzi scheme
> > > > >>> with
> > > > Tesla.
> > > > >>>
> > > > >>> On Thu, Jul 25, 2019 at 1:20 PM Raul Miller
> > > > >>> <[email protected]
> > >
> > > > > wrote:
> > > > >>>
> > > > >>>> On Thu, Jul 25, 2019 at 1:16 PM Devon McCormick <
> > [email protected]
> > >
> > > > >>>> wrote:
> > > > >>>>> In the Wikipedia article on Bill Miller, it says "[his
> > > > >>>>> fund's]
> > > > >>>> ...after-fee
> > > > >>>>
> > > > >>>> You've heard of Warren Buffett, though?
> > > > >>>>
> > > > >>>> Or, for that matter Elon Musk?
> > > > >>>>
> > > > >>>> Thanks,
> > > > >>>>
> > > > >>>> --
> > > > >>>> Raul
> > > > >>>>
> > ----------------------------------------------------------------------
> > > > >>>> For information about J forums see
> > > > http://www.jsoftware.com/forums.htm
> > > > >>>>
> > > > >>>
> > > > >>>
> > > > >>> --
> > > > >>>
> > > > >>> Devon McCormick, CFA
> > > > >>>
> > > > >>> Quantitative Consultant
> > > > >>>
> > > > >>>
> > > > >>
> > > > >> --
> > > > >>
> > > > >> Devon McCormick, CFA
> > > > >>
> > > > >> Quantitative Consultant
> > > > >>
> > ----------------------------------------------------------------------
> > > > >> For information about J forums see
> > http://www.jsoftware.com/forums.htm
> > > > >
> > ----------------------------------------------------------------------
> > > > > For information about J forums see
> > http://www.jsoftware.com/forums.htm
> > > >
> > > > ------------------------------------------------------------------
> > > > ---- For information about J forums see
> > > > http://www.jsoftware.com/forums.htm
> > > >
> > >
> > >
> > > --
> > >
> > > Devon McCormick, CFA
> > >
> > > Quantitative Consultant
> > > --------------------------------------------------------------------
> > > -- For information about J forums see
> > > http://www.jsoftware.com/forums.htm
> > ----------------------------------------------------------------------
> > For information about J forums see
> http://www.jsoftware.com/forums.htm
> >
> 
> 
> --
> 
> Devon McCormick, CFA
> 
> Quantitative Consultant
> ----------------------------------------------------------------------
> For information about J forums see http://www.jsoftware.com/forums.htm
----------------------------------------------------------------------
For information about J forums see http://www.jsoftware.com/forums.htm

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