Tesla's Turbocharged Volatility: Why TSLA Options Are a Risky Bet Right Now
Hey there, Tt’s!
Let's dive into the latest buzz around Tesla (TSLA), the most traded stock on the market as of 11 June 2024. Tesla continues to dominate the trading landscape, thanks to its relentless innovation in electric vehicles and energy solutions. But there's more to the story that's catching everyone's attention right now.
Current Market Insight:
Tesla's implied volatility percentile hit a whopping 70% yesterday, skyrocketing from 54% over just two trading sessions. This level of volatility is only higher 30% of the time, highlighting the intense tug-of-war between the bulls and bears. With this spike in implied volatility, options have become quite expensive, making it a challenging environment for buying calls or puts on TSLA. Elevated implied volatility signals heightened uncertainty and risk, making short-term movements harder to predict.
Why Options Are Risky Now:
Given the current market conditions, it's not advisable to buy calls or puts on Tesla at this time. The high implied volatility has driven up option prices, meaning you're paying a premium for uncertainty. Instead, it might be wise to wait for more stable conditions before jumping into TSLA options. Patience is key when the market is this volatile.
Supporting News:
Tesla's stock has been riding high on a wave of positive news recently. The company announced a significant increase in production capacity at its Gigafactories, aiming to meet the growing demand for its vehicles. Additionally, Tesla's advancements in battery technology continue to set it apart from competitors, securing its position as a leader in the EV market. These developments have contributed to the increased trading volume and interest in the stock.
Summary:
Tesla remains a hot stock to watch, driven by its strong market performance and continuous innovation. However, with the current spike in implied volatility and expensive options, it's crucial to exercise caution. Diversify your portfolio to mitigate risks and wait for more favourable conditions before considering TSLA options.
Stay savvy and keep an 👁️ on those market trends! Happy trading ahead 🍀
Cheers, BC.
@TigerGPT @TigerPM @Tiger_SG @CaptainTiger @Daily_Discussion @MillionaireTiger @TigerWire @Tiger_Earnings @Tiger_Insights @TigerGPT @All or Nothing
Comments
$Tesla Motors(TSLA)$ $NVIDIA Corp(NVDA)$ $Advanced Micro Devices(AMD)$ @All or Nothing Hey AoN! ~ in reply to your comment, a new post due to the restrictive word limit (more More Painful than Watching Elon Musk Tweet About Tesla’s Stock!)
Glad you agree about Tesla's volatility – it’s a real nail-biter these days! NVIDIA & AMD are definitely smart alternatives, though they're also facing some turbulence. With the US considering tighter restrictions on AI chips to China, both stocks have seen some recent hits. NVIDIA and AMD fell by about 4% and 3%, respectively, on this news. Despite these challenges, the tech sector's long-term prospects still look promising, especially with the ongoing demand for AI technologies.
what are your thoughts on these options strategies?
1. Hedge Your Positions: Use put options to protect your positions in NVIDIA and AMD against potential downside risks due to the ongoing US-China chip restrictions.
2. Look for Volatility Plays: The current situation might increase volatility, which could make straddle or strangle options strategies appealing for Put or Call options. This way, you can profit from significant price movements in either direction.
3. Focus on Expiry Dates: Given the uncertainty, consider shorter-term options that allow you to react quickly to market changes. This reduces the risk of holding positions through prolonged periods of volatility.
4. Monitor Earnings Reports and Announcements: Stay updated on any earnings reports or significant announcements from NVIDIA and AMD. These events can provide insights into how the companies are managing the restrictions and potentially adjust your strategy accordingly.
Trading hours can be a real challenge with those time zones. Your UK hours sound a bit more civilised compared to the HKG late nights. 😂
Let's stay sharp and see how those tech stocks play out. Happy trading!
Cheers,
BC
Based on the latest information, here are some relevant articles about Tesla (TSLA):
Don’t Let Tesla Stock’s Resilience Give You a False Sense of Security: This article discusses the potential issues that make Tesla a risky investment despite its recent gains.
Option Witch | Tesla Stock Options Highlight Investors' Fear Before Elon Musk’s Pay Showdown: The article explores the pricing differences between put and call options on Tesla stock, indicating investors' sentiment and expectations regarding risks and volatility.
Tesla Stock: Assessing The Ongoing Challenges (Technical Analysis): This article analyzes the ongoing challenges faced by Tesla, including the impact of tariffs on imported Chinese EVs and provides technical analysis of the stock's price trend.
Tesla: Amid Unprecedented Volatility, Focus On The Long-Term Drivers: The article highlights the significant volatility in Tesla's stock and suggests focusing on the long-term drivers of the company's success.
Please note that these articles provide different perspectives on Tesla's current situation and may help you gain a better understanding of the risks and challenges associated with investing in Tesla. Remember to conduct thorough research and consider your investment goals and risk tolerance before making any investment decisions.
Please be aware that the information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it is essential to consult with a financial advisor or do your own research before making any investment decisions.
I'm currently looking at other options, such as $NVIDIA Corp(NVDA)$ $Advanced Micro Devices(AMD)$ . These stocks are much more stable than $Tesla Motors(TSLA)$ .
I'm in the UK rn, 😂 so trading hours are quite different in HKG. Trading hours in the UK starts from 14:30-21:00. Unlike HKG, starting from 21:30-04:00.🤯
Happy Tradings! 🍀🍀🍀