Home / Business / Goldman Sachs earned $ 100 million off Tesla exchanges this year

Goldman Sachs earned $ 100 million off Tesla exchanges this year



Mysterious call option purchases force Tesla stock to rise? “).
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; 12 “> Over the past 6 months, particular attention has been paid to Tesla and, more specifically, to the euphoric purchase of calls in the name which has undoubtedly helped push a range squeeze that has seen yield increase Tesla stock since the beginning of the year (something we first discussed in May in “Mysterious Call Option Purchases Force Tesla Stock to Rise?”).

we learned& nbsp; that Softbank was helping along the broader market rally with an OTM call spread buy strategy in a handful of high beta tech stocks, a strategy that took Softbank up $ 4 billion. “data-reactid =” 13 “> Weeks ago we learned that Softbank was helping along the broader market rally with an OTM call spread buy strategy in a handful of high beta tech stocks, a strategy that led Softbank to the ‘high of $ 4 billion.

It now appears that Goldman Sachs can cash out with a similar strategy.

IFR& nbsp; Reuters, the investment bank & nbsp;has made about $ 100 million trading Tesla alone in the past few months. The bank was engaged in transactions that included “stock options, providing financing backed by Tesla shares, and buying and selling convertible bonds,” according to Bloomberg. “Data-reactid =” 19 “> According to IFR Reuters, the investment bank has made about $ 100 million trading Tesla alone in the past few months. The bank was engaged in transactions that included “stock options, providing financing backed by Tesla shares and buying and selling convertible bonds,” according to Bloomberg.

In addition to making money on Tesla calls, the vampire squid also made it rain by buying and selling Tesla converts (which have a face value of more than $ 4 billion), whose prices have risen sharply this summer as the company’s shares are skyrocket. The Goldman bankers also made money by providing secured financing against the company’s stock, or as it is also known, “corporate equity derivative deals” involving Tesla. This is an umbrella term for a number of transactions – including loans on margin or borrowing money against a company’s stock – that usually involve providing financing against large holdings, according to IFR.

Softbank’s action acted as a “windfall” for the company – and ultimately for Goldman as well – as optional missiles launched across the tech sector helped the broader market rise before NASDAQ fell by about 12% from highs earlier this month.

Call us old fashioned, but what happened to the good old days of banks simply trading in material non-public information?

By Zerohedge.com

Read this article on OilPrice.com“data-reactid =” 39 “> Read this article on OilPrice.com


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