Such-Wrongdoer-2198 t1_iya9s6j wrote
This wouldn't work.
In a short squeeze the "squeezee" is short TSLA calls. The way to hedge a TSLA call is to buy the TSLA shares you might be forced to deliver.
Additionally if you are short TSLA stock, then you have a carrying cost and a margin requirement, and must cover both. These will increase if the market moves against you.
If you are long TSLA you don't have a margin requirement (without margin), your only carrying cost is your cost of capital, which for many investors is conceptually zero.
As for the puts, if you are short TSLA puts that means you are essentially short cash. To offset your short position you have to raise cash, but it's not rational to assume that you would do so by selling TSLA shares, nor could you be forced to.
AutoModerator t1_iya9s7o wrote
Squeeze these nuts you fuckin nerd.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
autistictheory OP t1_iydsxm1 wrote
this is the best comment. thanks for the explanation. i'll throw my tsla long squeeze hopes in the garbage now
Viewing a single comment thread. View all comments