Tesla $TSLA - Stocks versus Options

Based on the Average True Range (ATR) of Tesla () stock, it can easily move $10 up or down in one day (see Green candle from today). Based on a move of $10 per share, 100 shares = $1000 gain or loss in a day. To buy 100 shares of TSLA today, it would cost about $23,000. Now consider doing the same thing with Long-term options. 1 call option gives you the option to buy 100 shares for a set price for a set period of time. A Tesla call option with strike price of $220 that expires in June of 2025 would cost about $5,425. The same $10 move in price would result in 1 option = $1000 x Delta %. Delta on this contract is .6629 or 66.3%. Thus 1 option = $1000 x 66.3% = $663 gain or loss in a day. The question is: Do you think Tesla will move $10 higher than the current price before June of next year? Or do you anticipate that TSLA will move $50 higher in the next 'year' (100 shares = $5,000 or 1 option = $3,315? Disclaimer: option Delta changes with price. There is risk associated with investing, especially with options. Also, Elon Musk's social media can impact the stock price.

交易开始

First Price target hit.

交易结束：到达目标

Tesla LEAPS option performance - Still trending towards all-time highs. The June 2025 $220 strike call option that had an ask price of $4,500 in previous post now has a bid of $11,835. This is a gain of $7,335 or 163% in 2 months.