Jesus did anyone catch that day where it spiked down 6 or 7%.. the options went loco crazy.. could only pick up a few, as I was "margin tapped out", some of these are damn ridiculous with like strike at 70 or 100 .... my next goal is to go buy a Tesla with TSLA puts..
There is another way to play TSLA that makes a profit unless it goes up fast. 77% likelihood to win, small risk and high profits of stock does anything except go up a lot. It makes good profits at sit still, and has big positive Theta. Here is link to article on Seeking Alpha. https://seekingalpha.com/instablog/...hance-win-make-35-percent-sits-still-low-risk starts like this How To Short Tesla With 77% Chance To Win, Make 35% If It Sits Still And With Low Risk Nov. 16, 2018 10:26 AM ET | 8 comments |About: Tesla, Inc. (TSLA) Summary Author today bought a TSLA option spread that does everything in the title and more. A good case can be made this is totally superior to shorting the stock and to another stock option strategy that has been suggested. This trade makes a 35% profit in 5 weeks if the stock is unchanged, a 189% profit at $365 and a 14% profit if $315 or lower. Risk is only $425 with a 77% chance of a profit. Bottom line is you have to be very wrong to lose anything. Being a little bit wrong generates the highest profit. Sound too good to be true? Below you will see an Etrade option calculator for a real trade done 11-13-2018 on Tesla (TSLA) that verifies the above bullets.
An iron butterfly only works if the stock doesn't move or has very low volatility. If stock moves you have to roll it into an iron Condor.
A few weeks ago privately I shared that I saw TSLA being range bound between 200 and 260. Thus I sold ICs with wings that wide. I don't see any difference for the next 2-3 months, so my expectation stays the same. The stock will fluctuate but there shouldn't be any big news coming out moving it much above 260 or below 200.