Tesla options strategy




Tesla options strategy

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  • Wall Street seems divided on Tesla stock, with price targets ranging With little knowledge on the best strategies, you can use options to rig.

    We now know that Tesla will not be going private, at least not now. these shares, getting short options on either side of the market could leave.

    Tesla Motors Inc (TSLA), presently trading for about $ a share, is a costly buy for small Here are a few option strategies which can be accomplished with low cost. As a base case for comparison, assume that Tesla stock is available for.

    Tesla options strategy

    Tesla options strategy

    We don't know how long it will take to increase the certainty this buyout will happen, but based upon Dell as well as the SolarCity buyout, it seems likely that the stock will trade close to the buyout price within 4 months and possibly much sooner. They have bid up the price of a company with fabulous ideas but no earnings to near all-time highs. Disagree x 2 Like x 1. Jul 18, Messages: Mar 24, Messages:

    Tesla options strategy

    Tesla options strategy

    Tesla options strategy

    Tesla options strategy

    Tesla options strategy

    TESLA | Terry's Tips Stock Options Trading Blog

    Follow Terry's Tips on Twitter. Like Terry's Tips on Facebook. Watch Terry's Tips on YouTube. Their composite value has increased Today, I would like to offer a different kind of a bet based on what a popular company might not do. The company is Tesla TSLA , and what we think it will not do is to move much higher than it is right now, at least for the next few months.

    Tesla is a company which has thousands of passionate supporters. They have bid up the price of a company with fabulous ideas but no earnings to near all-time highs. SolarCity was in deep financial trouble. It could have gone bankrupt, and will need a huge infusion of capital to survive.

    Tesla options strategy

    The company has historically issued overly optimistic projections, and the recent exodus of its CFO is evidence that some executives are rebelling. More and more traditional car companies are coming out with all-electric models that will compete directly with Tesla. Hong Kong will be crashing due to the elimination of a tax waiver which will nearly double the price of a Model S. These numbers make Tesla look astronomically overvalued and are the reason TSLA is a magnet for short sellers. This will require additional stock sales which could dampen prices.

    So what do you do if these writers have collectively convinced you that TSLA is overvalued? One thing you could conclude is that the stock will not move much higher from here. This is a trade you might consider:. This spread is called a vertical call credit spread.

    Tesla options strategy

    We prefer using calls rather than puts if you are bearish on the stock because if you are right, and the stock is trading below the strike price of the calls you sold on expiration day, both call options will expire worthless and no further trades need to be made or commissions payable.

    As with all investments, option trades should only be made with money that you can truly afford to lose. If you want to try this strategy you will have to hurry because the announcement is due after the close on Wednesday, February In case you want to know the details of my thoughts on this company which makes electric cars, check out my Seeking Alpha article — How to Play the Tesla Motors Earnings Announcement. In a nutshell, I think the likelihood of the stock going up after the announcement is very low.

    On the other hand, there are a large number of issues including earnings that might very well depress the stock. Here is what I would do:.

    Tesla options strategy

    I hope to exit the positions shortly after the announcement is made. This book may not improve your golf game, but it might change your financial situation so that you will have more time for the greens and fairways and sometimes the woods.

    Allen believes that the 10K Strategy is less risky than owning stocks or mutual funds, and why it is especially appropriate for your IRA. I have been trading the equity markets with many different strategies for over 40 years. Terry Allen's strategies have been the most consistent money makers for me. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. Options are not suitable for all investors as the special risks inherent to options trading my expose investors to potentially rapid and substantial losses.

    WATCH: Tesla Gave Us $10,000 !!!



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