Buying TSLA put contracts.
Tesla Inc. (TSLA) lost some of it’s luster with investors after falling below the $1,000 mark and braking it’s short-term December low this week. Shares have bounced a bit today but still look very vulnerable at a time when high-growth / high-valuation stocks are out of favor with investors.
The stock could lose half of its value and still be very expensive compared to expected earnings. Meanwhile, competition is heating up in the electric vehicle space.
The February $980 put contracts are in the sweet spot for our in-the-money option approach. If TSLA continues lower as expected, we should get close to a 1-for-1 price movement for the price of our put contracts. And if rebounds from this level, the time premium and volatility for these contracts should help to mute potential risk.
- Buy (to open) 1 TSLA February 18th $980 Put
- Limit $110.00 or less
- The new position will represent roughly 10.2% of our Spec Model capital
- 15:18 Executed
- Bot 1 TSLA Feb 18th $980 Put @ $102.75