{"id":486463,"date":"2022-08-21T02:54:00","date_gmt":"2022-08-20T23:54:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/squashed-like-a-bug-distressed-bond-manager-makes-a-multibillion-dollar-options-bet-against-tesla\/"},"modified":"2022-08-21T02:54:00","modified_gmt":"2022-08-20T23:54:00","slug":"squashed-like-a-bug-distressed-bond-manager-makes-a-multibillion-dollar-options-bet-against-tesla","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/squashed-like-a-bug-distressed-bond-manager-makes-a-multibillion-dollar-options-bet-against-tesla\/","title":{"rendered":"#: \u2018Squashed like a bug\u2019: Distressed-bond manager makes a multibillion-dollar options bet against Tesla"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27877c0d0c4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27877c0d0c4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/squashed-like-a-bug-distressed-bond-manager-makes-a-multibillion-dollar-options-bet-against-tesla\/#%E2%80%9C_%E2%80%98Squashed_like_a_bug_Distressed-bond_manager_makes_a_multibillion-dollar_options_bet_against_Tesla%E2%80%9D\" >&#8220;: \u2018Squashed like a bug\u2019: Distressed-bond manager makes a multibillion-dollar options bet against Tesla&#8221;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/squashed-like-a-bug-distressed-bond-manager-makes-a-multibillion-dollar-options-bet-against-tesla\/#Clive_McKeef\" >Clive McKeef<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_%E2%80%98Squashed_like_a_bug_Distressed-bond_manager_makes_a_multibillion-dollar_options_bet_against_Tesla%E2%80%9D\"><\/span>&#8220;: \u2018Squashed like a bug\u2019: Distressed-bond manager makes a multibillion-dollar options bet against Tesla&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001126682\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001126682\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Scott Burg, the chief investment officer of Deer Park Road Management Co., who made the prediction that Tesla would be <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/webcache.googleusercontent.com\/search?q=cache:za6mon-CBDAJ:https:\/\/twitter.com\/ScottEBurg\/status\/1341487084150800384&amp;cd=1&amp;hl=en&amp;ct=clnk&amp;gl=us\" class=\"icon none\">\u201csquashed like a bug\u201d <\/a>in a 2020 tweet, bought put options on almost 4.8 million Tesla shares during the second quarter, according to a<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1702490\/000156761922016209\/xslForm13F_X01\/form13fInfoTable.xml\" class=\"icon none\"> regulatory filing <\/a>this week, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-08-19\/deer-park-s-burg-bets-that-tesla-will-be-squashed-like-a-bug\" class=\"icon none\">Bloomberg <\/a>and Barron\u2019s reported.<\/p>\n<p> The shares<br \/>\n        TSLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203558040\/composite\" class=\"negative\">-2.05%<\/bg-quote><br \/>\n       covered by the puts had a face value of about $3.2 billion at the end of June, though the amount the firm has at risk may be far lower.<\/p>\n<div class=\"paywall\">\n       Burg reportedly told Barron\u2019s the Tesla put-options position amounted to 0.1% of his portfolio. That isn\u2019t all that much, and indicates Deer Park probably paid the less than $1 per share represented.<\/p>\n<p>After stepping up criticism of Tesla and CEO Elon Musk on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> this year, Burg deleted <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/webcache.googleusercontent.com\/search?q=cache:dQhC-biI_poJ:https:\/\/twitter.com\/scotteburg%3Flang%3Den&amp;cd=1&amp;hl=en&amp;ct=clnk&amp;gl=us\" class=\"icon none\">his Twitter account <\/a>Wednesday.<\/p>\n<p>Deer Park didn\u2019t return messages seeking comment, nor did Tesla, which has disbanded its media-relations department. Burg doesn\u2019t consider himself a big Tesla bear. But he did tell Barron\u2019s he\u2019s bearish on the overall economy and the consumer. He expects Tesla\u2019s stock to struggle, alongside other consumer-discretionary stocks, in the coming year.<\/p>\n<p>The Tesla wager is one of several bearish bets Deer Park made earlier this year using puts, which increase in value when an underlying asset declines. In the first quarter, Deer Park acquired puts on the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-1.29%<\/bg-quote><br \/>\n       with a face value of about $20 billion, more than four times the firm\u2019s net assets of $4.6 billion at the end of March.<\/p>\n<p>STS Master, the firm\u2019s flagship structured credit fund, reportedly gained 8.65% in the first half of 2022, with almost all of the gains coming from options, swaps and hedges, according to company documents obtained by Bloomberg.<\/p>\n<p>STS Master\u2019s fortunes reversed sharply in July, when the fund tumbled roughly 6.5%, putting it on track for its worst quarter ever if results fail to improve by the end of September. The loss pared the fund\u2019s 2022 gain to 2.2%, the firm told clients in an email Friday, after Bloomberg reported on the short wager.<\/p>\n<p>Shares of Austin, Texas\u2013based Tesla tumbled 38% in the second quarter amid mounting concerns about production disruptions at the electrical-vehicle maker\u2019s factory in Shanghai. The stock has rebounded sharply since June 30, surging 35% through Thursday\u2019s close.<\/p>\n<p>Shares of Tesla slipped to $890 on Friday in what proved to be a dismal trading session for the stock market, with the Nasdaq Composite Index<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"negative\">-2.01%<\/bg-quote><br \/>\n       falling 2% to end at 12,705.22 and the and Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"negative\">-0.86%<\/bg-quote><br \/>\n       falling 0.86% to 33,706.74. Friday wass Tesla\u2019s fourth consecutive day of losses. Tesla closed $353.49 short of its 52-week high of $1,243.49, which the company reached on Nov. 4.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Deer Park focuses mainly on distressed securities, including mortgage-backed and corporate debt, though it also has leeway to invest in stocks and equity derivatives, according to a filing.<\/p>\n<p>Little known outside Wall Street, Deer Park has generated average annual returns of about 19% since founder Michael Craig-Scheckman, one of the first employees at Izzy Englander\u2019s Millennium Management, started STS Master during the 2008 financial crisis.<\/p>\n<p>Twitter Inc.<br \/>\n        TWTR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203180645\/composite\" class=\"positive\">+0.30%<\/bg-quote><br \/>\n       may have been a catalyst for Deer Park to load up on Tesla put options in the second quarter.<\/p>\n<p>In April, Musk made an unsolicited bid to acquire the social-media platform for $44 billion, only to try to pull out of the deal as a market rout crushed tech stocks. The two parties are now engaged in a court battle that has weighed on Tesla shares, in part because Musk sold billions of dollars\u2019 worth of his personal stake in case he\u2019s forced to complete the deal.<\/p>\n<p>\u201cDo you know what a death spiral is? Coming\u2026$TSLAQ,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/webcache.googleusercontent.com\/search?q=cache:9kEuzLpu8jMJ:https:\/\/twitter.com\/ScottEBurg\/status\/1527713924040237057&amp;cd=2&amp;hl=en&amp;ct=clnk&amp;gl=us\" class=\"icon none\">Burg tweeted<\/a> on May 20, when shares of Tesla tumbled 6.4%. Stock exchanges typically add the letter \u201cQ\u201d to a company\u2019s ticker symbol when it files for bankruptcy protection.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Clive McKeef\",\"subhead\":\"The Wall Street Journal\",\"list\":[,{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/CliveMcKeef\",\"text\":\"@CliveMcKeef\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"mailto:clive.mckeef@marketwatch.com\",\"text\":\"clive.mckeef@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Clive_McKeef\"><\/span>Clive McKeef<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7113-11A106E67F48%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: \u2018Squashed like a bug\u2019: Distressed-bond manager makes a multibillion-dollar options bet against Tesla&#8221; Scott Burg, the chief investment officer of Deer Park Road Management Co., who made the prediction that Tesla would be \u201csquashed like a bug\u201d in a 2020 tweet, bought put options on almost 4.8 million Tesla shares during the second quarter,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":486464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-603891\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-486463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/486463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=486463"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/486463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/486464"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=486463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=486463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=486463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}