Conducting an investment in Tesla Inc (Symbol: TSLA) shares at their current market price of $233.62/share may appear daunting to some investors. However, an alternative strategy worth considering in this scenario would be to explore the potential of selling puts. Specifically, an intriguing put contract option here is the January 2026 put at the $50 strike, with a bid of $1.58 at the moment. By collecting the bid as the premium, investors can attain a 3.2% return against the $50 commitment or a 1.6% annualized rate of return. This strategy, known as the YieldBoost at Stock Options Channel, provides an avenue for investors to capitalize on the stock’s movements.
It’s important to note that while selling a put does not grant investors access to TSLA’s upside potential as owning shares would, it does offer a different avenue for potential gains. The put seller only ends up with shares if the contract is exercised, which is contingent upon the stock’s performance relative to the $50 strike. The upside to the put seller lies in collecting the premium for the 1.6% annualized rate of return, unless TSLA’s shares plummet by 78.5%.
For a visual representation of TSLA’s trading history, the chart below illustrates the trailing twelve-month data, highlighting where the $50 strike is situated within that timeline.
The reference to the chart above, along with the stock’s historical volatility, can serve as a useful guide in conjunction with fundamental analysis. The collective data aids in the evaluation of whether selling the January 2026 put at the $50 strike for the 1.6% annualized rate of return presents a favorable risk-reward proposition. Calculations indicate the trailing twelve-month volatility for TSLA stands at 52%. For additional put options contract ideas across various available expirations, visiting the TSLA Stock Options page of StockOptionsChannel.com is recommended.
During mid-afternoon trading on Wednesday, the put volume among S&P 500 components hit 1.94M contracts, with a call volume of 2.51M. This resulted in a put:call ratio of 0.77 for the day, a figure notably higher than the long-term median put:call ratio of .65. In essence, this suggests an abnormal increase in put buyers in today’s options trading, as opposed to the typical prevalence of call buyers. It’s an unusual occurrence worth noting in the current market landscape.
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