Exploring the Intricacies of Trading Opportunities
Like a seasoned artist unveiling a series of intricate brushstrokes, investors at Tesla Inc welcomed the trading debut of new options slated to expire on July 26th. As the financial stage was set, one put and one call contract emerged, capturing the attention of keen-eyed market participants.
A Glimpse into the Put Contract Arena
Dipping one toe into the put contract waters, intrigued investors eyed the $170.00 strike price with a bid of $9.00. Stepping boldly into the arena, those who sell-to-open this put contract commit to acquiring the stock at $170.00 while reaping the premium, effectively setting the stage at $161.00 per share (before broker commissions). This strategic move, shrewd as a fox hunting for its prey, offers an enticing alternative to the current share price of $173.53.
Unveiling the Calls Side
Conversely, on the calls side, a call contract at the $190.00 strike price beckoned with a bid of $7.50. Taking the reins, an investor purchasing TSLA stock at $173.53/share can venture into a “covered call,” committing to sell the stock at $190.00. This dynamic maneuver, akin to a skilled chess player contemplating their next move, promises a total return of 13.81% if the stock is called away at the July 26th expiration (before broker commissions).
Analyzing the Historical Tapestry
Delving into the annals of Tesla Inc’s trailing twelve-month trading history, there lies a tapestry where strategies unfold. Illuminated in green at the $170.00 strike and painted in red at the $190.00 strike, the historical context serves as a compass guiding investors through the tempestuous seas of the stock market.
Should the covered call contract fade into obscurity, investors stand to bask in both their shares of stock and the premium reaped. According to current analytical data, the odds of this happening stand resolute at 61%, reinforcing the notion of a calculated risk in the tumultuous realm of options trading.
A Closer Look at Volatility
In the realm of implied volatility, the put contract boasts a 54% figure, while its call counterpart resonates at 57%. As investors navigate the labyrinth of options trading, the actual trailing twelve-month volatility stands at 51%, offering a compass to guide them amidst the volatility storm.
For traders seeking additional put and call options contract insights, the roads lead to StockOptionsChannel.com, a beacon of knowledge in the ever-evolving financial landscape.
