mikeavelli
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Citi Group Dumps 48% of Lucid Shares in Q2, Buys Puts and Sells Calls - EV
Citi Group published late Monday the quarterly update of its portfolio revealing that trimmed its position in the luxurious electric vehicle (EV) maker Lucid Motors by nearly 48% while increasing its stake in Tesla by over 22%.eletric-vehicles.com
Citi dumps a ton of lucid shares but buys more tesla
They didn't just dump the stock, they are actively betting against it or positioning to hedge against a downside scenario. This is an aggressive call.
When you buy "Puts", it means the party who sold you the put gives you the right (but not obligation) to sell shares to them at a predetermined price. When you sell "Calls", that means people who buy call options from you have the right (but not the obligation) to purchase from you at a set price.
They're probably selling the calls to fund the premiums on the put options.
If you're selling options you hope they don't get exercised.
If you're buying puts and selling calls, it means you expect your puts to be priced above where the market will be, and you expect your calls to expire unexercised because who is gonna buy from you for $1 and sell for less in the open market?
So it drops, you've locked in the money to fund your put option premiums and now you're in the money.
Also option contracts are sold in bundles of options. The premiums are usually a small fraction of the cost of the share, depending on the pricing and terms they're struck at.
Note:
If a bank is down on a stock, they'll prefer to move to "hold" or neutral on it vs a downside view. This is pretty aggressive.
BYD Yangwang U9 reached 375 km/h in a recent top speed test with a target of over 412 km/h (Rimac Nevera's record). The battery did not go into limp mode during top speed run and under repeated drag races. There's an arms race going on in China building world's fastest EV both on the straights and on track. We should expect a record attempt on Nordschleife this year.
https://electrek.co/2024/08/14/watch-byds-electric-supercar-race-233-mph-video/
Its main competitor Mi SU7 Ultra is even more of a McLaren copy.That's insane. I also can't help but exclaim at how big of a knock-off this car is of a McLaren 570S. Be it on the inside and outside.
Come to think of it, that's an interesting point.In some sense the Lexus EV Supercar also borrows heavily from McLaren's design. Maybe McLaren has figured out the optimal aerodynamic shape for supercars and more and more similar designs will appear in the future.
The ProAce van looks like a rebadged Dodge Promaster, which in turn is a rebadged Fiat something.