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.
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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