When Lin Shicheng sent over the latest collateral evaluation report, Risk Control Department from the four investment banks had already withdrawn all warning notices on the margin accounts.
After Tesla stock price rebounded from the lowest point of 250 US Dollar to around 260 US Dollar,
The market value of the collateral has returned to a level of approximately 4.3 billion US Dollar, which is far from the weighted average Liquidation Threshold of the four investment banks--
About 207 US Dollar per share--and a thick enough safety cushion.
He opened the last page of the report, pointed to the conclusion column and said to Zhao Chen:
"The current Pledged Position risk is controllable and there is no need to add additional collateral. Zhao Zong, this wave has been overcome."
Zhao Chen took the report, glanced at it, closed it and put it on the coffee table.
"Liquidation Threshold 207, now 260. There are more than fifty US Dollar safety pads in the middle.
As long as there are no major problems with Tesla and Fundamentals, there is no need to passively cover positions at this position."
He picked up the tea cup and took a sip, looking out the window.
"Lawyer Lin, HSR's 30-day review window has passed.
The FTC did not make a second inquiry, Era Vanguard can resume buying Nvidia at any time. I want to start the follow-up Add Position."
"How big is it?" Lin Shicheng's fingers stopped on the notebook.
"Five hundred million principal, one-to-one leverage, totaling one billion US Dollar.
Buy in batches, slow down the pace, and don't let the market see at a glance that Era Vanguard is moving from the transaction details."
Zhao Chen Put down the teacup,
"In addition, more than 400 million US Dollar will be left untouched in the account as a safety cushion.
Apple With the withdrawn funds plus the emergency reserve, there are still more than 900 million US Dollar. Take 500 million to Add Position, and the remaining 400 million will be kept just in case."
Su Wantang raised his head and glanced at him, but didn't say much.
The Pu'er on the table was steaming slightly, and Chen Xi opened the laptop and began to formulate an operation plan for buying one billion US Dollar in batches--
No more than 200,000 shares per day, no more than 30,000 shares in a single transaction, scattered in three different channels.
"Zhao Zong, this rhythm will take about three to four weeks to complete.
The volume of one billion US Dollar is broken down into small and medium-sized orders, which is not surprising among the daily average Trading Volume of Nvidia.
If we don't take the initiative to expose ourselves, it will take at least a week or two, and it will be difficult for the market to track our increase in holdings."
"Then let them follow you." Zhao Chen's voice was low,
"Schedule 13D Amendment Filing must be submitted every time it exceeds 1%. It is only a matter of time before it is made public. There is no need to hide it, but there is no need to shout it."
However, as soon as this billion US Dollar quietly appeared in the transaction details of Nvidia, it was keenly captured by the old guys at Explorers Club.
It's not because they have extraordinary eyes, but in the dozens of days after Era Vanguard submitted HSR Filing, these people have put every transaction of Nvidia that exceeds 10,000 shares under the microscope.
When those small split orders appear repeatedly with similar rhythms, similar channels, and similar price ranges in several consecutive trading days,
Wall Street's transaction monitoring Model does not require human judgment - the algorithm automatically pops up the "suspected same buyer continues to accumulate funds" mark.
The fire in the fireplace was still burning, but the expressions of the people gathered around the leather chairs were colder than the ice on the Hudson River outside.
White-Haired Old Man threw the printout of the transaction data on the coffee table.
"Apple After clearing their positions, the cash on their account is much richer than we previously expected.
The actions of this billion US Dollar illustrate two things--
First, they are fully capable of withstanding a moderately intense round of pledge replenishment;
Second, their willingness to Add Position on Nvidia has not diminished in any way."
He leaned back in his chair, crossed his fingers,
"It makes no sense to continue to smash Tesla in the short term.
The cash in their hands is enough to cover the replenishment requirements, and the chips we throw down will only be taken away at a low level by passively allocated funds.
Unless Tesla Fundamentals really deteriorates, continuing Short Selling is just helping them wash their hands."
The bald man sitting opposite him frowned and read the data from beginning to end twice.
"These transactions were very fragmented, with 30,000 shares in one transaction, scattered across several different channels.
It means they know we are watching and are on guard."
He put the printout back on the coffee table, "Era Vanguard liquidated Apple. We only inferred it from their capital movements after the fact."
Lin Shicheng, an old lawyer, has spread out the payment channels over at least four levels, and even PB Departments can't put together a complete picture.
We previously underestimated the operational level of their risk control team."
"So the question now is not whether we can continue to smash Tesla."
White-Haired Old Man picked up the Whisky cup and took a sip.
"It's useless to smash it. They still have several hundred million US dollars in cash on hand, plus the floating profit of Nvidia's position - although it's not much, it's not a loss.
Unless the stock price of Tesla effectively falls below the Liquidation Threshold of 207 US Dollar, any Short Selling is using our money to test their Cash Reserves."
He put the glass down, "Gentlemen, I suggest you hold off. Don't make new Put Option, and don't take the initiative to smash the market."
Waiting for the first quarter report - Tesla If the first quarter delivery data is lower than 90,000 vehicles, then we don't need to break it, the market will break through this equilibrium range by itself.
If deliveries exceed expectations, all of our current Short Sellers positions will need to be re-evaluated."
He glanced at the people present and asked, "Do you have any different opinions?"
No one spoke.
The group of sharks in the Explorers Club who can smell the smell of blood the most made the same judgment on this March afternoon:
Stand still and wait for Fundamentals to give direction.
They didn't give up on sniping Era Vanguard, they were waiting for Tesla to reveal his flaws--
Or wait for Era Vanguard on Nvidia and Add Position to reach a certain critical point, and then consume your own Cash Reserves to the danger zone again.
At that time, the power of playing the same card will be completely different.
That night, Chen Xi suddenly raised his head while checking the time node of Schedule 13D Amendment Filing.
"Zhao Zong, there is a detail - for our increase in holdings on Nvidia, every time the amount exceeds 1%, a 13D correction must be submitted.
After submitting the correction, everyone at Wall Street will know that we are at Add Position again.
Short Sellers is standing still. Is it possible that they are waiting for us to use up all the cash?"
Zhao Chen leaned on the back of the sofa and slowly turned his fingers around the edge of the teacup.
"It's possible. They didn't smash Tesla, not because it couldn't be smashed, but because it was useless.
But if Era Vanguard's cash is slowly consumed in Nvidia Add Position, and Tesla suddenly has another bad news--
By that time, they have bullets in their hands and we have no cash in our hands, and the 250 US Dollar platform will be smashed through again."
"That's why we have to keep more than 400 million US Dollar in our account"
Su Wantang took the words, his voice was not high, but every word was filled with a kind of determination after having thought the matter through.
"These more than 400 million are not used for Add Position, but are used to make them use traps."