Delving into TSLA Options on May 10th
As Tesla Inc (Symbol: TSLA) enthusiasts found new options available for trading on the May 10th expiration date, intriguing possibilities unfolded. Stock Options Channel scrutinized the TSLA options chain for standout put and call contracts that caught the eye of investors.
Peering into the Put Option
One enticing option is the put contract at the $145.00 strike price with a current bid of $1.37. Selling-to-open this put contract entails committing to buy the stock at $145.00, while also pocketing the premium. This move effectively lowers the cost basis of the shares to $143.63, offering a compelling alternative to the current share price of $177.03.
A Glimpse at the Call Option
On the calls side, the call contract at the $250.00 strike price boasts a current bid of 77 cents. By purchasing TSLA shares at $177.03 and selling-to-open this call contract as a “covered call,” investors agree to sell the stock at $250.00. This strategic play could yield a robust return of 41.65% if the stock gets called away at expiration.
Exploring Historical Context
Both contracts hinged on historical context. The $145.00 put stands at an 18% discount to the current trading price, while the $250.00 call represents a 41% premium. Considering the dynamics of TSLA’s trading history is vital in making informed decisions regarding these options.
Analyzing Volatility
Implied volatility is 60% for the put contract and 62% for the call contract. In contrast, the trailing twelve-month volatility calculates at 48%. These figures provide essential insights for investors navigating through the labyrinth of options trading strategies.
Before You Go
For more intriguing put and call options contracts insights, a visit to StockOptionsChannel.com could prove to be quite illuminating. It’s like taking a stroll through a vast and open market where each option tells a unique story waiting to be explored.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
