February 26, Monday, New York.
When Zhang Qingxue went out, his genius had just begun to shine.
The February morning in Manhattan was as cold as a blade, and the wind blew from the Hudson River, carrying the smell of water vapor and rust.
She wrapped her coat tightly, got into a taxi, and said to the driver "Wall Street 200".
The driver, a Pakistani, glanced at her in the rearview mirror, said nothing, and stepped on the accelerator.
No. Wall Street 200, Goldman Sachs Headquarters Building.
When Zhang Qingxue arrived, there was already a long queue in the lobby--
Bankers in suits, lawyers carrying Briefcase, traders holding coffee cups in their hands, everyone was in a hurry.
She gave her name, made a call at the front desk, and someone came to pick her up and take her upstairs.
Michael Chen's office is on the 32nd floor, and the window faces New York Harbor.
When Zhang Qingxue entered, he was standing in front of the window talking on the phone, his voice was very low.
Seeing Zhang Qingxue, he pointed to the sofa and motioned for her to sit.
Zhang Qingxue sat down and looked at this office - it's not big, but it's very elegant.
There is an old photo of New York Stock Exchange hanging on the wall, and a Bloomberg Terminal is placed on the table, with the numbers on the screen beating.
Michael Chen hung up the phone and turned around. He was in his early forties, wearing a pair of rimless glasses and his hair was neatly combed.
He wore a light blue shirt, no tie, and one cuff button was unbuttoned.
"Lawyer Zhang, long time no see."
He came over and shook hands with Zhang Qingxue, "I'm sorry that the last transaction Tesla Options didn't make you any money."
Zhang Qingxue smiled, "Michael, you are too polite. In trading, there is profit and there is loss."
Michael Chen sat down opposite her and asked without any hesitation, "This time, is it Tesla?"
Zhang Qingxue did not answer directly.
"Michael, let me first ask about the market situation. Tesla and Call Options, how is the liquidity in the market now?"
Michael Chen leaned back in his chair and thought for a while.
"To be honest, it's not very good. After the decline at the end of January, most of Call Options was cleared.
There are currently about 20 million shares of calls still alive in the market.
But many of them are deeply fictitious. Strike Price is ridiculously high and is basically useless paper.
Those with real trading value may be less than 10 million shares."
Zhang Qingxue's expression did not change, but she wrote down the number in her mind.
Ten million shares--less than she expected.
Michael Chen continued, "Moreover, most of these Options holders are retail investors, not institutions.
The characteristic of retail investors is that they are willing to sell when the price is right.
But if you buy too much at once, they will think someone is trying to cause trouble and stop selling."
Zhang Qingxue nodded. "What if I want to buy it? Do you have any ideas?"
Michael Chen thought for a while, "Buy in batches and slowly.
Don't sweep goods at a certain price, but place a limit order and let the market fill it in. This will not cause too much fluctuation.
Or - go for over-the-counter trading and negotiate the package price directly with the holder. But this method takes time, and I have to help you find the seller."
Zhang Qingxue didn't answer. She picked up the water glass on the coffee table, took a sip, and then said:
"Michael, to tell you the truth, I am indeed considering opening a position.
But I can't decide on the specific quantity and price yet. I'll discuss it with the customer when I get back and then I'll give you the news."
Michael Chen nodded and did not ask further questions.
He knows the rules - when a customer doesn't want to talk, there's no point in asking.
"Okay, I'm waiting for your news. In terms of price, I can give you a rough range--
Strike Price 300 US Dollar, for calls expiring in January 2019, Premium is approximately between 18 and 20 US Dollar.
Strike Price 320 US Dollar's,15 to 17 US Dollar. Strike Price 350 US Dollar's,10 to 12 US Dollar.
They are much cheaper than in January."
Zhang Qingxue went through these numbers in his mind.
In January, the call of Strike Price 300 US Dollar, Premium was 32 US Dollar.
Now it has dropped to 18 US Dollar, which is nearly half the price.
But what Zhao Chen wants is not cheapness, but timing.
She didn't show any emotion, just nodded and stood up:
"Michael, thank you. I'll go back to discuss it and get back to you as soon as possible."
Michael Chen walked her to the elevator. "Lawyer Zhang, whether you do it or not, please contact me at any time."
Zhang Qingxue smiled and walked into the elevator.
At 11:30 noon, Zhang Qingxue came to JPMorgan Chase.
James Holbrook's office is at No. Park Avenue 270, which is more classically decorated than Goldman Sachs.
Dark wooden wall panels, thick leather sofas, and a family photo on the table - two blond little boys with bright smiles.
Holbrook himself is younger than Zhang Qingxue imagined, in his mid-thirties, with auburn hair and blue eyes. He likes to tap his fingers on the table when talking.
"Ms. Zhang," Holbrook said quickly,
"Michael told me that you went to his place this morning. How much did he pay you?"
Zhang Qingxue was stunned for a moment.
The news of Wall Street spread faster than she imagined.
"James, you should know the rules. I can't reveal this information."
Holbrook smiled and waved his hand:
"Just kidding. Okay, I won't ask. How many do you want?"
Zhang Qingxue threw the same question to him:
"Call Options of Tesla, how much liquidity can you provide here?"
Holbrook thought for a while and picked up a piece of paper from the table with numbers written on it.
"The Options contract that we can mobilize here is about five million shares.
But most of them are above Strike Price 330, which are deeply out-of-value. The truly valuable ones are about two million shares.
Strike Price is between 300 and 320, Premium is one to two US Dollar more expensive than Goldman Sachs."
Zhang Qingxue frowned. "Why is it more expensive than Goldman Sachs?"
Holbrook shrugged:
"Because our holding costs are high. Last year we lost a lot of money on Tesla Options. Now that we have to recover our losses, the price will naturally not go down."
Zhang Qingxue didn't say much.
She jotted down a few key figures, then stood up:
"James, thank you. I'll go back to discuss it and contact you again."
Holbrook walked her to the door and suddenly said:
"Ms. Zhang, if your client is 'Era Vanguard', then tell me something - there is more than one agency staring at him."
Zhang Qingxue looked back at him, turned around and walked out without answering.
Three o'clock in the afternoon, Morgan Stanley.
Sarah Wu's office is near Broadway 1585, Times Square.
Her style is completely different from the previous two - the office is as simple as an interrogation room, with white walls, black tables and chairs, and no decoration.
She herself is simple, with short hair, no makeup, wearing a black suit and skirt, and a very thin watch on her wrist.
"Lawyer Zhang," Sarah Wu's voice was cold,
"I won't beat you around the bush. The liquidity of Call Options on the market is very poor, and the total number of tradable contracts is less than 10 million shares.
Goldman Sachs can mobilize more, but the price is high. JPMorgan Chase has a low price, but the quantity is small.
We, Morgan Stanley, are somewhere in between."
Zhang Qingxue looked at her and said nothing.
Sarah Wu continued:
"We have about three million shares of liquidity, Strike Price is between 300 and 350, Premium is 0.5 US Dollar cheaper than Goldman Sachs, and 0.5 US Dollar more expensive than JPMorgan Chase.
If the amount you want is not large, we can eat it all here."
Zhang Qingxue asked, "What if the quantity is large?"
Sarah Wu glanced at her:
"If the volume is large, you have to go through over-the-counter trading. I can help you contact several large institutions that hold large amounts of Options to see if they are willing to sell it.
But this will take time, and success is not guaranteed."
Zhang Qingxue nodded.
She wrote down several numbers reported by Sarah Wu, and then stood up:
"Sarah, thank you. I'll go back to discuss it and contact you again."
Sarah Wu walked her to the elevator without saying anything else.
The market was worse than she and Zhao Chen imagined, and there were simply not enough selling orders for Options.
This matter can only be discussed in the long term.