Loading...
Loading...
Dan Nathan spoke on
CNBC's Options Action about
Tesla Motors IncTSLA. He believes that the stock is going lower and he suggested that traders should consider a bearish options strategy in the name.
Nathan wants to sell the December 31, 200 strike put for $4.50 and buy the March 200 put for $13.50. The put calendar would cost him $9 and the breakeven for the trade is at $191. In order to collect the premium on the short put option, he is hoping that the stock is going to close above $200 at the December expiration. After that he can consider selling another 200 strike put that expires before March or he can sell a lower strike put and turn the trade into a vertical put spread.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in