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How TSLA's S&P 500 Inclusion Will Go Down w/ Rich Lee: Head of ETF Trading at Baird

Rich Lee of RW Baird shares details on the mechanics of index tracking funds in and interview with Rob Maurer.

In the included video, Rob Maurer of Tesla Daily is joined by Rich Lee, Head of Program & ETF Trading at RW Baird, to discuss Tesla's inclusion in the S&P 500 index, how tracking and benchmark funds are approaching the addition, the closing cross trade, and what retail investors should understand ahead of TSLA's inclusion.

Timestamps:

  • 0:00 Intro and background
  • 1:14 Do S&P 500 funds still need 115M TSLA shares?
  • 3:49 Will they be buying on the closing cross?
  • 5:06 Is there enough volume/liquidity in the closing cross?
  • 7:39 Quadruple witching day
  • 8:30 Are TSLA shares being held somewhere for transfer?
  • 9:43 Would index funds have options positions?
  • 10:39 Simple breakdown of inclusion situation
  • 12:27 What if funds can’t get enough shares?
  • 13:49 Will TSLA price spike during inclusion?

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Disclosure: Rob Maurer is long TSLA stock & derivatives.

https://www.rwbaird.com/ci/sales-trading/equity-sales-trading/ies-disclaimer.aspx