There seems to be one thing holding me from huge gains on the TSLA options, and that is the presence of short sellers in the stock. Various elements on Twitter have already summed up this, and I agree with them.

For TSLA to sell off to where it should be, short sellers have to die.

For the moment, the ever rising pain threshold in the stock keeps a steady stream of buyers from bailing shorts, trying to salvage what’s left of their dignity. These buyers are replaced, not by a massive spike higher, but rather by more short sellers, trying their hand (and probably coy longs slyly selling out, even as they pitch that next “Elon Musk Is The Second Coming” post).

I don’t understand how difficult it is to stay away from shorting a stock that’s trading at (what is it even now? 270X EPS?) such elevated levels. Anyone crazy enough to pay $100 for TSLA, or $130, would surely pay $200. Why not? What stops them? They’ve already crossed a line.

What TSLA really needs, for me going forward (and preferably before September), is to have the short position in TSLA drop to 0%. Then, TSLA longs will be left holding a company at >270X Annualized EPS that no one in their right minds will buy.

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