Deadline Approaches for Mark Spiegel’s January 2020 Puts

A famous Tesla short seller made a big bet: Tesla stock would be under $200 by January 2020.

He purchased a large number of January 2020 $200 puts — contracts that allow him to sell shares of Tesla for $200 until January 2020. If Tesla shares were priced at around $100, he could make a killing buying shares on the market and selling them via his options contract for $200 a share.

However, if January 2020 arrives and the share price is more than $200… the “very large position” of options he bought will be completely worthless. Because Tesla shares can be sold on the market for $350 today, using the contract to sell shares for $200 is completely pointless. As Mark himself would say, his position “is a zero”.

Best of luck to Mark BS as he attempts to recover from this huge loss.

3 thoughts on “Deadline Approaches for Mark Spiegel’s January 2020 Puts

  1. Well, we don’t know whether he hasn’t swapped this position for something else… Though I kinda doubt he was able to do so without taking a significant loss.

    (Also, can we actually believe the claimed 1500:1 payout bet on bankruptcy? Were shitputs ever quite that cheap?…)

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