Nathan explained that the stock is very correlated to crude oil, but after the announcement of the Model 3 it has outperformed crude oil. He believes that Tesla Motors Inc is going to pull back towards $200 in coming months, because expectations are high and there are not a lot of catalysts until the release of Model 3.
To make a bearish bet, Nathan wants to buy the June 210 put for $12.50 and sell the April 210 put for $2.50. He is paying $10 for the calendar put spread. He believes that over next couple of weeks the stock is going to trade above $210 and he is going to sell another put if the April 210 put expires worthless.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.