Unveiling May 24th Options for Tesla
Today marks the genesis of a new horizon for investors in Tesla Inc (Symbol: TSLA) as options for the May 24th expiration begin trading. Delving into the realm of possibilities, our financial compass at Stock Options Channel has meticulously combed through the TSLA options chain, unearthing one put and one call contract that beckon attention.
Unraveling the Put Contract at $125.00 Strike Price
Journeying down the path less taken, the put contract at the $125.00 strike price stands as a beacon, with a current bid of 99 cents. Venturing to sell-to-open this put contract, an investor binds oneself to acquire the stock at $125.00. Yet, in the symbiotic exchange, they reap the premium, setting the cost basis of the shares at $124.01 (pre-broker commissions). An enticing prospect for those eyeing a stake in TSLA at a discount, signaling an alternate route to the current $170.18/share.
Charting the Course Forward
In a dance between risk and reward, the $125.00 strike holds a promise of a 27% markdown from the prevailing trading price of the stock, signifying its out-of-the-money allure. Statistical whispers predict a 92% chance of the put contract fading into obscurity. As Stock Options Channel trails these odds, a chart will unfold over time, narrating the ebb and flow of fortunes — a canvas to behold.
Unleashing the Potential of Call Contracts
Turning the gaze towards the calls, a contract at the $235.00 strike price beckons with a 96 cents bid. Should an investor set sail on a voyage to purchase TSLA shares at $170.18/share, and then unfurl the call contract as a “covered call,” a promise arises to vend the stock at $235.00, unfurling a tapestry of returns — a potential 38.65% yield if the stock bids adieu on the May 24th expiration (pre-broker commissions). Amidst the allure of grandeur, caution beckons, urging a glance at Tesla Inc’s twelve-month trading saga, and a peek into its business bedrock.
Facing the Winds of Upside and Downside
The $235.00 strike casts a shadow of a 38% premium over the existing trading price, embodying an out-of-the-money spell. Glancing through the crystal ball, a prospect emerges of the covered call contract vanishing into the mist, leaving the investor with both shares and the collected premium. Statistical murmurs project an 86% chance of this fate. Stock Options Channel pledges a watchful eye, charting the nuanced dance of odds and unveiling the numbers. Should the covered call meet its demise, a 0.56% boost beckons, a 4.12% yearly waltz into the realm of extra returns — a story we dub the YieldBoost.
Peering into the Veil of Volatility
Mysteries abound as the implied volatility in the put contract whispers at 64%, while its call counterpart echoes at 71%. Meanwhile, the cloak of actual trailing twelve-month volatility, donned after considering the closing values of the last 250 trades alongside today’s $170.18 price, swirls at 48%. For those hungry for more tales of put and call options, StockOptionsChannel.com stands as a sanctuary of exploration.
