Option Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA

Barchart11-11

Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked...

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Pinkspider
11-11
Pinkspider
389 might be achievable by end wedo essay at this rate. Btc hitting all time high is having a day
King19
11-11
King19
I would do a buy out instead 😃

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It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked...</p>\n\n<a href=\"https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla\">Source Link</a>\n\n</div>\n","source":"barchart_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-11 10:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked...</p>\n\n<a href=\"https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TSLA","symbol_name":"特斯拉","start_time":0,"source_url":"https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla","article_id":"1189041364","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1189041364","pubTimestamp":1731293746,"columns":[],"sourceInfo":{"source_id":"barchart_highlight","name":"Barchart"},"weMediaInfo":null,"summary":"Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here?It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?","collect":0,"end_time":0,"defaultTopTitle":"barchart.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TSLA":"特斯拉"},"translate_title":"期权女巫特斯拉在大幅上涨后值得买入吗？做空看跌期权来玩特斯拉","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSLA":1.1},"content_text":"Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?TSLA closed at $321.22 on Friday, Nov. 8. That is even higher than my previous price target of $306.72.I've looked at Tesla's results again and analysts' revenue estimates. Based on its strong FCF margins, TSLA stock could be worth over 21% more, or $389 per share. However, that might take well over a year to achieve. Moreover, in the short term, TSLA stock could pull back.As a result, shorting out-of-the-money (OTM) put options may be one profitable way to play this situation. This allows you to set a lower buy-in price target and get paid while waiting for this to happen.Shorting OTM PutsTSLA put options are very high now. Therefore, it makes sense to short them in nearby expiry periods and in out-of-the-money (OTM) strike prices.That way the investor can generate income and set a lower buy-in price target while waiting for the stock to retreat.For example, look at the Nov. 22, 2024, expiration period, just 2 weeks away. It shows that the $300 strike price put option, which is over 6.6% below the trading price, has a $7.70 bid-side premium.That provides an annual yield of 70% to the short-seller of these puts.$TSLA 20241122 300.0 PUT$Here is what this means. Let's say that the investor wants to short 1 put contract. They must first secure $30,000 in cash and/or buying power with their brokerage firm.Then, they can enter a trade to “Sell to Open” 1 contract to sell $300.00 strike price put options for expiry on Nov. 22. The account will immediately receive $770.00.Moreover, even if the stock falls in the next two weeks, the investor will be forced to buy at $300.00, but the breakeven price is $300-$7.70, or $292.30. That is well below Friday's close, i.e., 9.0% below $321.22. So, there is good downside protection. In that regard, note that the delta ratio is only -0.277, i.e., 27% probability. That implies a low chance that the stock could hit $300 in less than 2 weeks.In addition, if TSLA stock stays flat for the next month, the investor can repeat this trade. If the short-put yield stays high, the investor could make over 5.1% in the next month (i.e., 2.567% x 2 = 5.134%). Moreover, the breakeven would be 5.134% lower at $304.73 per share.The bottom line is that TSLA stock could be worth buying here using a short-put play.  This is a way to set a lower buy-in price while generating income in short expiry periods.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":369735982309472,"gmtCreate":1731305157907,"gmtModify":1731305164142,"author":{"id":"3563842318594455","authorId":"3563842318594455","name":"Pinkspider","avatar":"https://community-static.tradeup.com/news/2643891549304031c32c05b207f0f2b6","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":9,"crmLevelSwitch":1,"idStr":"3563842318594455","authorIdStr":"3563842318594455"},"htmlText":"389 might be achievable by end wedo essay at this rate. Btc hitting all time high is having a day&nbsp;","listText":"389 might be achievable by end wedo essay at this rate. Btc hitting all time high is having a day&nbsp;","text":"389 might be achievable by end wedo essay at this rate. Btc hitting all time high is having a day","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/369735982309472","repostId":1189041364,"repostType":4,"repost":{"id":"1189041364","kind":"news","pubTimestamp":1731293746,"share":"https://ttm.financial/m/news/1189041364?lang=&edition=fundamental","pubTime":"2024-11-11 10:55","market":"us","language":"en","title":"Option Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA","url":"https://stock-news.laohu8.com/highlight/detail?id=1189041364","media":"Barchart","summary":"Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here?It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?","content":"<html><head></head><body><p>Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It&#39;s obvious that Elon Musk&#39;s relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?</p><p style=\"text-align: start;\">TSLA closed at $321.22 on Friday, Nov. 8. That is even higher than my previous price target of $306.72.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a1c775b4f297154da1077bb688a0d185\" title=\"\" tg-width=\"923\" tg-height=\"522\"/></p><p>I&#39;ve looked at Tesla&#39;s results again and analysts&#39; revenue estimates. Based on its strong FCF margins, TSLA stock could be worth over 21% more, or $389 per share. However, that might take well over a year to achieve. Moreover, in the short term, TSLA stock could pull back.</p><p style=\"text-align: start;\">As a result, shorting out-of-the-money (OTM) put options may be one profitable way to play this situation. This allows you to set a lower buy-in price target and get paid while waiting for this to happen.</p><h3 id=\"id_1346239542\" style=\"text-align: start;\">Shorting OTM Puts</h3><p style=\"text-align: start;\">TSLA put options are very high now. Therefore, it makes sense to short them in nearby expiry periods and in out-of-the-money (OTM) strike prices.</p><p style=\"text-align: start;\">That way the investor can generate income and set a lower buy-in price target while waiting for the stock to retreat.</p><p style=\"text-align: start;\">For example, look at the Nov. 22, 2024, expiration period, just 2 weeks away. It shows that the $300 strike price put option, which is over 6.6% below the trading price, has a $7.70 bid-side premium.</p><p style=\"text-align: start;\">That provides an annual yield of 70% to the short-seller of these puts.</p><p><a href=\"https://ttm.financial/OPT/TSLA%2020241122%20300.0%20PUT\" title=\"$TSLA 20241122 300.0 PUT$\" target=\"_blank\">$TSLA 20241122 300.0 PUT$</a></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6e412db15c92531058c998b2eaf0ff8c\" title=\"\" tg-width=\"1118\" tg-height=\"515\"/></p><p style=\"text-align: start;\">Here is what this means. Let&#39;s say that the investor wants to short 1 put contract. They must first secure $30,000 in cash and/or buying power with their brokerage firm.</p><p style=\"text-align: start;\">Then, they can enter a trade to “Sell to Open” 1 contract to sell $300.00 strike price put options for expiry on Nov. 22. The account will immediately receive $770.00.</p><p style=\"text-align: start;\">Moreover, even if the stock falls in the next two weeks, the investor will be forced to buy at $300.00, but the breakeven price is $300-$7.70, or $292.30. That is well below Friday&#39;s close, i.e., 9.0% below $321.22. </p><p style=\"text-align: start;\">So, there is good downside protection. In that regard, note that the delta ratio is only -0.277, i.e., 27% probability. That implies a low chance that the stock could hit $300 in less than 2 weeks.</p><p style=\"text-align: start;\">In addition, if TSLA stock stays flat for the next month, the investor can repeat this trade. If the short-put yield stays high, the investor could make over 5.1% in the next month (i.e., 2.567% x 2 = 5.134%). Moreover, the breakeven would be 5.134% lower at $304.73 per share.</p><p style=\"text-align: start;\">The bottom line is that TSLA stock could be worth buying here using a short-put play.  This is a way to set a lower buy-in price while generating income in short expiry periods.</p></body></html>","source":"barchart_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-11 10:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked...</p>\n\n<a href=\"https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1189041364","content_text":"Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?TSLA closed at $321.22 on Friday, Nov. 8. That is even higher than my previous price target of $306.72.I've looked at Tesla's results again and analysts' revenue estimates. Based on its strong FCF margins, TSLA stock could be worth over 21% more, or $389 per share. However, that might take well over a year to achieve. Moreover, in the short term, TSLA stock could pull back.As a result, shorting out-of-the-money (OTM) put options may be one profitable way to play this situation. This allows you to set a lower buy-in price target and get paid while waiting for this to happen.Shorting OTM PutsTSLA put options are very high now. Therefore, it makes sense to short them in nearby expiry periods and in out-of-the-money (OTM) strike prices.That way the investor can generate income and set a lower buy-in price target while waiting for the stock to retreat.For example, look at the Nov. 22, 2024, expiration period, just 2 weeks away. It shows that the $300 strike price put option, which is over 6.6% below the trading price, has a $7.70 bid-side premium.That provides an annual yield of 70% to the short-seller of these puts.$TSLA 20241122 300.0 PUT$Here is what this means. Let's say that the investor wants to short 1 put contract. They must first secure $30,000 in cash and/or buying power with their brokerage firm.Then, they can enter a trade to “Sell to Open” 1 contract to sell $300.00 strike price put options for expiry on Nov. 22. The account will immediately receive $770.00.Moreover, even if the stock falls in the next two weeks, the investor will be forced to buy at $300.00, but the breakeven price is $300-$7.70, or $292.30. That is well below Friday's close, i.e., 9.0% below $321.22. So, there is good downside protection. In that regard, note that the delta ratio is only -0.277, i.e., 27% probability. That implies a low chance that the stock could hit $300 in less than 2 weeks.In addition, if TSLA stock stays flat for the next month, the investor can repeat this trade. If the short-put yield stays high, the investor could make over 5.1% in the next month (i.e., 2.567% x 2 = 5.134%). Moreover, the breakeven would be 5.134% lower at $304.73 per share.The bottom line is that TSLA stock could be worth buying here using a short-put play.  This is a way to set a lower buy-in price while generating income in short expiry periods.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":369700390928560,"gmtCreate":1731300426325,"gmtModify":1731300430265,"author":{"id":"4088135301967120","authorId":"4088135301967120","name":"King19","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"4088135301967120","authorIdStr":"4088135301967120"},"htmlText":"I would do a buy out instead 😃","listText":"I would do a buy out instead 😃","text":"I would do a buy out instead 😃","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/369700390928560","repostId":1189041364,"repostType":2,"repost":{"id":"1189041364","kind":"news","pubTimestamp":1731293746,"share":"https://ttm.financial/m/news/1189041364?lang=&edition=fundamental","pubTime":"2024-11-11 10:55","market":"us","language":"en","title":"Option Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA","url":"https://stock-news.laohu8.com/highlight/detail?id=1189041364","media":"Barchart","summary":"Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here?It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?","content":"<html><head></head><body><p>Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It&#39;s obvious that Elon Musk&#39;s relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?</p><p style=\"text-align: start;\">TSLA closed at $321.22 on Friday, Nov. 8. That is even higher than my previous price target of $306.72.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a1c775b4f297154da1077bb688a0d185\" title=\"\" tg-width=\"923\" tg-height=\"522\"/></p><p>I&#39;ve looked at Tesla&#39;s results again and analysts&#39; revenue estimates. Based on its strong FCF margins, TSLA stock could be worth over 21% more, or $389 per share. However, that might take well over a year to achieve. Moreover, in the short term, TSLA stock could pull back.</p><p style=\"text-align: start;\">As a result, shorting out-of-the-money (OTM) put options may be one profitable way to play this situation. This allows you to set a lower buy-in price target and get paid while waiting for this to happen.</p><h3 id=\"id_1346239542\" style=\"text-align: start;\">Shorting OTM Puts</h3><p style=\"text-align: start;\">TSLA put options are very high now. Therefore, it makes sense to short them in nearby expiry periods and in out-of-the-money (OTM) strike prices.</p><p style=\"text-align: start;\">That way the investor can generate income and set a lower buy-in price target while waiting for the stock to retreat.</p><p style=\"text-align: start;\">For example, look at the Nov. 22, 2024, expiration period, just 2 weeks away. It shows that the $300 strike price put option, which is over 6.6% below the trading price, has a $7.70 bid-side premium.</p><p style=\"text-align: start;\">That provides an annual yield of 70% to the short-seller of these puts.</p><p><a href=\"https://ttm.financial/OPT/TSLA%2020241122%20300.0%20PUT\" title=\"$TSLA 20241122 300.0 PUT$\" target=\"_blank\">$TSLA 20241122 300.0 PUT$</a></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/6e412db15c92531058c998b2eaf0ff8c\" title=\"\" tg-width=\"1118\" tg-height=\"515\"/></p><p style=\"text-align: start;\">Here is what this means. Let&#39;s say that the investor wants to short 1 put contract. They must first secure $30,000 in cash and/or buying power with their brokerage firm.</p><p style=\"text-align: start;\">Then, they can enter a trade to “Sell to Open” 1 contract to sell $300.00 strike price put options for expiry on Nov. 22. The account will immediately receive $770.00.</p><p style=\"text-align: start;\">Moreover, even if the stock falls in the next two weeks, the investor will be forced to buy at $300.00, but the breakeven price is $300-$7.70, or $292.30. That is well below Friday&#39;s close, i.e., 9.0% below $321.22. </p><p style=\"text-align: start;\">So, there is good downside protection. In that regard, note that the delta ratio is only -0.277, i.e., 27% probability. That implies a low chance that the stock could hit $300 in less than 2 weeks.</p><p style=\"text-align: start;\">In addition, if TSLA stock stays flat for the next month, the investor can repeat this trade. If the short-put yield stays high, the investor could make over 5.1% in the next month (i.e., 2.567% x 2 = 5.134%). Moreover, the breakeven would be 5.134% lower at $304.73 per share.</p><p style=\"text-align: start;\">The bottom line is that TSLA stock could be worth buying here using a short-put play.  This is a way to set a lower buy-in price while generating income in short expiry periods.</p></body></html>","source":"barchart_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts to Play TSLA\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-11 10:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked...</p>\n\n<a href=\"https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.barchart.com/story/news/29498123/is-tesla-worth-buying-here-after-its-huge-runup-shorting-puts-is-one-way-to-play-tsla","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1189041364","content_text":"Tesla Inc stock has had a huge runup. TSLA is up over 26% in the past three days. Is it worth buying here? It's obvious that Elon Musk's relationship with President-elect Trump is one reason it spiked. But is TSLA stock overvalued now?TSLA closed at $321.22 on Friday, Nov. 8. That is even higher than my previous price target of $306.72.I've looked at Tesla's results again and analysts' revenue estimates. Based on its strong FCF margins, TSLA stock could be worth over 21% more, or $389 per share. However, that might take well over a year to achieve. Moreover, in the short term, TSLA stock could pull back.As a result, shorting out-of-the-money (OTM) put options may be one profitable way to play this situation. This allows you to set a lower buy-in price target and get paid while waiting for this to happen.Shorting OTM PutsTSLA put options are very high now. Therefore, it makes sense to short them in nearby expiry periods and in out-of-the-money (OTM) strike prices.That way the investor can generate income and set a lower buy-in price target while waiting for the stock to retreat.For example, look at the Nov. 22, 2024, expiration period, just 2 weeks away. It shows that the $300 strike price put option, which is over 6.6% below the trading price, has a $7.70 bid-side premium.That provides an annual yield of 70% to the short-seller of these puts.$TSLA 20241122 300.0 PUT$Here is what this means. Let's say that the investor wants to short 1 put contract. They must first secure $30,000 in cash and/or buying power with their brokerage firm.Then, they can enter a trade to “Sell to Open” 1 contract to sell $300.00 strike price put options for expiry on Nov. 22. The account will immediately receive $770.00.Moreover, even if the stock falls in the next two weeks, the investor will be forced to buy at $300.00, but the breakeven price is $300-$7.70, or $292.30. That is well below Friday's close, i.e., 9.0% below $321.22. So, there is good downside protection. In that regard, note that the delta ratio is only -0.277, i.e., 27% probability. That implies a low chance that the stock could hit $300 in less than 2 weeks.In addition, if TSLA stock stays flat for the next month, the investor can repeat this trade. If the short-put yield stays high, the investor could make over 5.1% in the next month (i.e., 2.567% x 2 = 5.134%). Moreover, the breakeven would be 5.134% lower at $304.73 per share.The bottom line is that TSLA stock could be worth buying here using a short-put play.  This is a way to set a lower buy-in price while generating income in short expiry periods.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":11,"commentSize":2,"repostSize":1,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1189041364"}