12/28/2022 0 Comments Volkswagen short squeeze![]() ![]() We provide are sourced directly from the stock exchanges (NASDAQ, NYSE, NYSE American, NYSE Arca, CBOE, and IEX) and FINRA. We source our short interest data from a variety of providers. Short interest is published twice-monthly, on a The data is organizedīy frequency of updates, with intraday data at the top (short shares availability, short borrow fee rate),ĭaily data (short volume, fails-to-deliver) in the middle,Īnd the slowest updated data (short interest) at the bottom. The brothers angrily protested that it was unfair to change the rules in the middle of the game, but the rules were changed and the brothers went from billionaires to bankrupts.This short interest tracker provides a variety of short interest related data, sourced from a variety of partners. Of course, rules can be changed, as Nelson Bunker and William Herbert Hunt learned. ![]() It won't have done that by selling cars, but a profit is a profit. If this works, Porsche will have made billions from a car company at a time when cars are not selling very well. But Porsche insists that it broke no German laws, adding that "allegations of price manipulation by Porsche are therefore without any foundation whatsoever." It placed the blame on - you guessed it - "speculative short-sellers." In the United States, there are numerous laws and regulations to stop corners. That allowed index funds to sell stock, adding to the supply of shares, and VW's shares lost part of their gains. Germany's premier stock index, the DAX, was changed to cut VW's proportion in it. And there are rumors that Porsche has purchased put options, presumably with later exercise dates, to profit from that fall.īy Tuesday night, the establishment was fighting back. Now it may be one more loss for some already reeling bank or banks.Īfter all this is done, the VW share price will fall to a more reasonable level. That is one result of having opaque markets, which Wall Street used to love because it made for higher profit margins. Of course, those people may have used other derivatives to lay some of their risk off on who-knows-who-else. There has been a lot of speculation about who is on the hook for those options. The result could be tens of billions of euros in profits without the headache of owning shares that no one else wants to buy. Instead, it merely has to accept the cash difference between the market price and the price it has agreed to pay. That means Porsche does not have to buy the shares - which it might have a lot of trouble paying for. The options are said to be cash-settled, although we do not know much more about them than that. It appears that Porsche put one over on whoever wrote that option, or options. VW became the world's most valuable company, if you believed that market price. The shorts scrambled to cover, and the price leaped from about €200, or about $265, to above €1,000. ![]() That left precious few shares available for anyone else. The German state of Lower Saxony owns a 20 percent stake in VW, which it said it would not sell. ![]() Then last weekend, Porsche disclosed that it owned 42.6 percent of the stock and had acquired options for another 31.5 percent. Hedge funds, figuring the share price would fall as soon as Porsche got control and stopped buying, sold a lot of VW shares short. Porsche, for some reason, wants to control Volkswagen, and by building up its stake has driven up the price. Now, from Germany we have a new version of the corner, using derivatives in a way that may have removed much of the risk for the people planning the corner.īriefly, here are the relevant facts. ![]()
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