"There is one more question - Lin Shicheng, please remind me tomorrow.
The legal team must be in place on Wednesday.
Although buying Common Stock is simpler than Options, the compliance review of cross-border capital flows is also indispensable.
Let them go through our capital account again to see if there are any problems with the previous operations.
You cannot allow money to arrive in your account only to have it frozen due to compliance issues."
Zhang Qingxue made another note in the notebook, and then closed the notebook:
"Okay. I'll contact Lin Shicheng tomorrow to confirm the progress on Wednesday."
The three of them were silent for a while.
Manhattan outside the window was brightly lit, and Hudson River in the distance was shining in the night. Su Wantang suddenly spoke:
"Xiao Chen, what if after buying Common Stock, the stock price continues to fall?"
Zhao Chen glanced at her and then smiled.
"Then keep buying. Buy one batch for 270, one batch for 250, and another batch for 200.
As long as Tesla doesn't go bankrupt, these chips are cheap."
He paused and his voice became calmer:
"And, think about it - what is the market's expectation for Tesla now?
If the production capacity problem cannot be solved, cash flow will be cut off and Tesla will go bankrupt.
But what if these expectations are wrong? What if the capacity problem is eventually resolved and cash flow holds up?
At that time, the stock price will not be a matter of rising back to 300, but a matter of rising to 500 or 600.
Common Stock below 300 US Dollar looks expensive now, but in two years it will be all at floor price."
Su Wantang somewhat understands it. In the long run, Tesla is well worth investing in.
Zhang Qingxue put the notebook into his bag and stood up:
"Then I'll go back to my room first. I'll contact Lin Shicheng and Michael Chen tomorrow morning."
Zhao Chen nodded. "Thank you for your hard work, Aunt Zhang."
After Zhang Qingxue left, only Zhao Chen and Su Wantang were left in the restaurant.
The New York outside the window was still on, but the hotel was as quiet as another world.
Su Wantang picked up the tea cup and suddenly asked, "Xiao Chen, I didn't understand."
Zhao Chen looked at her.
Su Wantang said, "You said before that you may have to cash out part of the funds at the end of the year to buy Nvidia.
This investment is essentially a short-term operation, and the time window is only about ten months.
Since it is short-term, wouldn't it be appropriate to use Options? The leverage is high, the capital is small, and you can leave as soon as you make money."
Zhao Chen was silent for a while. Su Wantang's question got to the point.
He picked up the cup of herbal tea, put it down again, and tapped his fingers on the table twice.
"Wantang," he said, "You are right. This investment is indeed short-term.
My judgment is that the production capacity problem of Tesla can be solved before the end of the year.
When market sentiment reverses, the stock price will rise rapidly.
It stands to reason that Options is the most appropriate expression for this judgment."
Su Wantang didn't answer, waiting for him to continue.
Zhao Chen paused and lowered his voice. "But the problem is, Options's amount is too small."
He picked up Zhang Qingxue's notebook, turned to the page where Options's data was recorded, and pointed it to Su Wantang.
"The Call Options, Strike Price 320 that can be purchased in the market total only a few million shares.
300 Strike Price, less.
Even if I wipe out all the stocks in the market and buy five million shares."
He made a calculation in his mind.
"Just calculate it as Strike Price 320, Premium 15, the total cost is 335.
If the stock price rises to 350 at the end of the year, the profit per share will be 15 US Dollar.
Five million shares, that's 75 million US Dollar.
If it rises to 400, each share will earn 80 US Dollar. Five million shares including Premium will earn 400 million US Dollar.
It sounds like a lot, but compared with Common Stock, it's far behind."
Su Wantang looked at him with a trace of doubt in his eyes.
Zhao Chen continued:
"Common Stock is different. The current stock price is 270. If I buy 10 million shares at this position, the cost will be 2.7 billion.
It also rose to 350 at the end of the year, earning 80 US Dollar per share, and 800 million US Dollar for 10 million shares.
If it rises to 400, each share will earn 130 US Dollar, and 10 million shares will earn 1.3 billion US Dollar.
With the same judgment and the same time window, the income of Common Stock is two to three times that of Options."
Su Wantang asked, "What if the judgment is wrong? What if the production capacity problem is not solved at the end of the year and the stock price does not rise but falls?"
Zhao Chen nodded, he had also thought about this problem.
"If the judgment is wrong, the difference between Common Stock and Options will be huge. Options will return to zero when it expires, and tens of millions of US Dollar will be wasted.
Common Stock is different - if the stock price drops, as long as I don't sell, it's not a real loss.
I can continue to hold it and wait for the next round of rise."
He paused and lowered his voice:
"Furthermore, even if the stock price of Tesla does not improve at the end of the year, I still have a way."
Su Wantang looked at him.
Zhao Chen said, "Pledge. Use the shares of Tesla as collateral and go to the bank to borrow money. Use the borrowed money to buy Nvidia.
In this way, the position of Tesla does not need to be moved, and the position of Nvidia can be established. There will be no delay on either side."
Su Wantang was stunned for a moment, then smiled, "You want to occupy both ends."
Zhao Chen also laughed, "It's not about occupying both ends, it's about leaving a way out.
Options There is no way out. When it expires, it expires. If it fails, it will return to zero.
Common Stock There is a way out. If it doesn't work, just pledge it, or continue to hold it and wait."
He leaned back in his chair and his expression relaxed a little.
"Of course, if Options and Premium are cheap enough, it doesn't matter if you buy a little.
For example, if Strike Price 300 and Premium fall below 10 US Dollar, and Strike Price 320 and Premium fall below 8 US Dollar, then you can consider it.
Spend tens of millions US Dollar to buy an insurance, and you won't feel bad if you lose, and you will get extra income if you make money."
He looked at Su Wantang with a hint of seriousness in his voice:
"But the current market price is too high.
Premium of 15 US Dollar, buying a Options of 320 Strike Price is equivalent to me paying a cost of 18 US Dollar for the stock price to rise above 335.
This price is not worth it."
Su Wantang picked up the teacup, took a sip, and didn't ask any more questions.
She looked at Zhao Chen and suddenly felt that this man, who was several years younger than her, had something very special when making decisions -
It's not impulsive or conservative, it's a precise calculation.
He knows what he is betting on and what he can afford to lose.
"So," Su Wantang put down the tea cup, "You choose Common Stock."
Zhao Chen nodded. "Choose Common Stock. Be more steady."
He picked up the cup of cool tea and took a sip, the bitter taste spreading on his tongue.
"Also, Common Stock has another advantage - you don't have to keep an eye on the stock price every day.
Options If you are under time pressure, take a look at the stock price every day and calculate how much Time Value. Common Stock is not needed.
If you buy it, leave it alone and do whatever you want. Wait until the end of the year to see if it goes up. If it goes up, sell it. If it doesn't go up, then pledge it."
Su Wantang smiled, "You are not trading stocks, you are farming. Plant the seeds and wait for the harvest."
Zhao Chen was stunned for a moment, and then smiled:
"You're right. It means farming. I like this piece of land, sow the seeds, fertilize and water, and wait for it to grow on its own.
If it winds or rains in the meantime, that's a matter of the weather and I can't control it. But as long as the land is not left bare, there will always be a harvest."
Zhao Chen leaned back on the chair and suddenly felt a lot more relaxed.
Now that I have figured out the matter of Options, the next step is to execute it. For Common Stock below 300 US Dollar, buy as many as you have.
Before the end of the year, if the stock price rises above 350, sell part of it to cash out and buy Nvidia.
If it doesn't rise, use pledge financing.
Both roads are feasible.
Also very important, there are too many people staring at Era Vanguard. It is safest to buy Common Stock.