written by reader Ok, you asked for it, here goes, I was advised to do some options on TSLA

By backoffice, May 18, 2018

the trade was was given to me about 2 weeks ago, buy 1 put on TSLA June 1st at 312.50 and sell a put on TSLA at 260.00.
Because I don’t have a level 2 account with Schwab I couldn’t do it. (it’s pending). My question is how would this look at this time and also how much money would I need in the Account to cover this trade? Thanks Travis!

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Travis Johnson, Stock Gumshoe Recent comment authors

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Travis Johnson, Stock Gumshoe

That’s a really precise short-term options trade. Not sure I’ll get the details perfect because I just have a moment to run through it on the fly, but her’s how I see it: If you buy a put, you buy the right to sell 100 shares of stock — in this case, 100 shares of TSLA. That’s a bet that Tesla will fall below $312.50 over the next week or two (if you’re talking June 1 expiration), and if you sell a put you’re trying to reduce the cost a little bit buy also promising to buy 100 shares of… Read More ยป

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