- Thu Mar 27, 2025 4:51 pm
#9438
Tesla May 9th Options Analysis: Opportunity or Risk?
New TSLA options for May 9th expiration have appeared, sparking a discussion around potential investment strategies. A deep dive into the $275 put and $290 call options reveals intriguing possibilities, but also potential pitfalls.
Selling the $275 put offers a discounted entry point for those bullish on TSLA, effectively lowering the cost basis to $252.35. However, this strategy hinges on TSLA staying above $275. Is a 58% chance of the option expiring worthless enough of a gamble, especially considering the implied volatility of 70%? Is this an attractive alternative to buying shares outright at the current price?
On the flip side, selling the $290 covered call could yield an additional 9.34% return if TSLA reaches $290 by May 9th. But what if TSLA continues its upward trajectory? Is capping your gains at $290 worth the premium collected? With a 51% chance of the option expiring worthless, is this a conservative approach or a missed opportunity for greater profit?
The article mentions a calculated trailing twelve-month volatility of 68% compared to an implied volatility of 70%. What does this difference signify? Are market participants overestimating future price swings? How does this influence your options strategy?
Let’s discuss the potential risks and rewards of these options strategies. Share your insights, trading experiences, and predictions for TSLA’s price action leading up to the May 9th expiration. Are these options plays worth considering, or are there better alternatives for capitalizing on TSLA's potential?
New TSLA options for May 9th expiration have appeared, sparking a discussion around potential investment strategies. A deep dive into the $275 put and $290 call options reveals intriguing possibilities, but also potential pitfalls.
Selling the $275 put offers a discounted entry point for those bullish on TSLA, effectively lowering the cost basis to $252.35. However, this strategy hinges on TSLA staying above $275. Is a 58% chance of the option expiring worthless enough of a gamble, especially considering the implied volatility of 70%? Is this an attractive alternative to buying shares outright at the current price?
On the flip side, selling the $290 covered call could yield an additional 9.34% return if TSLA reaches $290 by May 9th. But what if TSLA continues its upward trajectory? Is capping your gains at $290 worth the premium collected? With a 51% chance of the option expiring worthless, is this a conservative approach or a missed opportunity for greater profit?
The article mentions a calculated trailing twelve-month volatility of 68% compared to an implied volatility of 70%. What does this difference signify? Are market participants overestimating future price swings? How does this influence your options strategy?
Let’s discuss the potential risks and rewards of these options strategies. Share your insights, trading experiences, and predictions for TSLA’s price action leading up to the May 9th expiration. Are these options plays worth considering, or are there better alternatives for capitalizing on TSLA's potential?
- By Anonymous