Share Price vs Short Interest (in Millions of Shares)
Data Feeds From Nasdaq
Short interest data comes out twice monthly.
Musk’s Tweet set off a controversy when on Tweeted “Am Considering taking Tesla private at $420. Funding secure.”
So here we are. The Tesla share price is $301.66. A year ago, the price closed at $355.90.
In that time frame shorts are 15% ahead but many were likely stopped out on Musk’s Tweets.
Tesla Monthly Chart
The winning strategy since June 2017 has been to sell strike $360 calls every month and let them go to zero. One could have simultaneously sold strike $260 puts and collected two premiums.
Given the volatility of Tesla that represents a huge amount of premiums collected each month.
Of course hindsight is 20-20.
Finally, blaming the shorts is a poor strategy. Great execution, not broken promises, is the way to take on the shorts.
Mike “Mish” Shedlock
