TSLA Short Mar 21 250P for $3.2


Personal

Updated Jan 19th, 2021

12/7/20 I went short TSLA via a long Put option when the stock was at 633. The previous Friday the stock was struggling to get 600.

I’m expecting Tesla to pull back to 500.

With some very unofficial analysis of what I think might put would be worth if it hit 500 I’ll just assume volatility stays the same and disregard theta.

When the stock hits my target of 500 and I have a 250 put that means that my put will be 250 OTM. I want to know what the current put is worth that’s $250 out of the money. So if the underlying is at 633 less the 250 out of the money was that ballparks it at the 380 Put expiring same month of March which is currently $1180-1200.

The 380 put that expires in less than 2 weeks is like $50, the next month January is $475 and February $875

I think if we see a sell-off in Tesla the volatility would increase So I need this TSLA selloff to happen. I need it to happen sooner rather than later. My max loss is 320 and I’m looking at 3:1 or higher risk to reward ratio.


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