How To Bet Against Tesla Using Convertible Bonds

Investors seeking to bet against Tesla's common stock may want to give its convertible bonds a spin.
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Investors seeking to bet against Tesla's (TSLA) - Get Report common stock may want to give its convertible bonds a spin, said Edward Silverstein, portfolio manager for the MainStay Convertible fund (MCOAX) - Get Report . Silverstein is long Tesla's 1.25% convertibles, now trading around $0.84 on the dollar and yielding 4.7%, due in March 2021 and short equal amount of the automaker's common stock, which was trading around $200 at last check. Silverstein is also bullish on Oasis Petroleum (OAS) - Get Report converts, saying the driller has a cost advantage. Oasis recently issued a convertible security 2.625% due September 2023. Silverstein is also constructive on Intercept Pharmaceuticals' (ICPT) - Get Report recently issued convertible security yielding 3.25% and due 2023. The company recently won approval for Oclavia, a treatment for liver disease and is trying to get approval for treatment for another liver indication that has a much larger treatment population.