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The best option for options if you think TSLA is going down?

  • Last Updated:
  • Feb 23rd, 2021 8:28 am
[OP]
Newbie
Nov 12, 2008
45 posts
5 upvotes

The best option for options if you think TSLA is going down?

Regarding Tesla for example... If you believe all the things Michael Burry says about an over inflated price, what would the best options play out there?

I mean, I think selling calls would be a place to start, but is there a better strategy like a covered call or iron condor or something?

Thanks.
12 replies
[OP]
Newbie
Nov 12, 2008
45 posts
5 upvotes
Yeah, shorting it, but using option strategies....
Member
Aug 18, 2019
258 posts
182 upvotes
Buy put, sell call options. How far do you think it's gonna go down to? $600s? Low 700?
~ 👍teslanaire2bitcoinaireButStillCheapLurking@RFDForDeals✌️~
Deal Fanatic
Jul 7, 2004
6196 posts
1848 upvotes
Keep us up to date how this goes.
Deal Addict
User avatar
Dec 16, 2015
2483 posts
2138 upvotes
Canada
I am becoming meme, destroyer of shorts
To the moon
Deal Addict
Jul 12, 2008
2988 posts
900 upvotes
GTA
Shorting Tesla hasn’t ended well for most people in the run up, buying LEAPS at once or buying puts in 3 to 6 month intervals can achieve what you want.
Deal Addict
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Mar 27, 2007
2454 posts
298 upvotes
Look, everyone was a beginner at some point. But if you're on RFD asking about how to use leverage to short TSLA, I would seriously consider doing some more learning before you get burned. Shorting isn't for everyone, and requires knowledge of strategies beyond the initial short trade.

Check out WSB, and look at the biggest loss posts. It's always someone who "had some money, decided to try options, and two months later lost $50K".
Member
Aug 18, 2019
258 posts
182 upvotes
Let the dude learn from his mistakes. It'd be a very valuable lesson to carry for the rest of his life. It's free country after all. Don't scold. Be supportive please.
~ 👍teslanaire2bitcoinaireButStillCheapLurking@RFDForDeals✌️~
[OP]
Newbie
Nov 12, 2008
45 posts
5 upvotes
Wow. 7 replies. And not a single person understood the question.... I guess this board is not as smart as they think they are, and are just too afraid to admit it.

I mean really. It's like talking to children.... "Now Brian. Do you know what clouds are made of?" - Brian: "Uh... yeah.... they're made from.... you're stupid!".

Good one guys, real good. Keep up the good work....

If you don't know Option Strategies, then just say so, or don't even reply. Nobody cares if your ego is bruised.....
Deal Addict
Jul 12, 2008
2988 posts
900 upvotes
GTA
ajdedo wrote: Wow. 7 replies. And not a single person understood the question.... I guess this board is not as smart as they think they are, and are just too afraid to admit it.

I mean really. It's like talking to children.... "Now Brian. Do you know what clouds are made of?" - Brian: "Uh... yeah.... they're made from.... you're stupid!".

Good one guys, real good. Keep up the good work....

If you don't know Option Strategies, then just say so, or don't even reply. Nobody cares if your ego is bruised.....
Ok, I/we may have misunderstood your question. Options are complicated as is already so I keep it simple and generate high returns, I never liked some of the strategies that limit upside or offer limited returns as well.

Married Put if all you want is to protect your long position would be my answer. What I mentioned earlier is the same as the “Long Put” strategy and the best way to do it IMO.
[OP]
Newbie
Nov 12, 2008
45 posts
5 upvotes
badmus wrote: Ok, I/we may have misunderstood your question. Options are complicated as is already so I keep it simple and generate high returns, I never liked some of the strategies that limit upside or offer limited returns as well.

Married Put if all you want is to protect your long position would be my answer. What I mentioned earlier is the same as the “Long Put” strategy and the best way to do it IMO.
Thanks for your answer. Though I do not have a long position, nor do I want one. My question was about shorting the stock by using options in a way to protect against some large swing to upside.

I had bought 16 April 2021 750.00 PUTS @ $58 (which has since gone up to $95+ at close yesterday. And I'm sure they'll be well over $100+ after this morning) but at the time I bought the PUTs, I wanted a strategy to protected against some upside swing.

Obviously it doesn't matter now since I'm deep in the money. But it still would be good to have a strategy for the next time I want to short a stock, and not just hold the naked PUT. Anyway, there's a more educated website I'm on now that deals with options. So thanks anyway.

P.S. It's amazing the naiveté in some of the comments above. I can't imagine what life is like in their heads.... If only they thought instead of spoke, then maybe they could have been up almost 100% too.... GL.
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Sep 21, 2007
6455 posts
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Winnipeg
I think you're better off playing the long game here and collecting on the premium. My buddy does weekly puts and calls and it's not as profitable and way more risky than 2-3 month horizon. Because of the stimulus coming I would go even longer imo.. Just my opinion.
"An essential aspect of creativity is not being afraid to fail." -- Edward Land

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