Investors can consider selling put options for Tesla Inc (TSLA) at a $190 strike price, with a bid of $27.80, offering a 6% annualized rate of return. This strategy allows for a potential 14.6% return against the commitment. However, it does not provide access to the stock’s upside potential unless the contract is exercised.

The historical volatility of Tesla Inc, with a 73% trailing twelve-month volatility, can help investors assess the risk-reward ratio of selling the put options. The $190 strike price is highlighted on a chart to show its positioning relative to the stock’s trading history. Visit StockOptionsChannel.com for more options contract ideas.

In options trading, S&P 500 components have seen higher put volume than usual, with a put:call ratio of 0.90, compared to the long-term median of 0.65. This indicates more put buyers in the market. Discover the top call and put options traders are discussing today.

For more insights on options trading and Nasdaq 100, check out the Top YieldBoost Puts of the Nasdaq 100. Keep informed with Stockholder Letter, MCBK Historical Stock Prices, and Top Ten Hedge Funds Holding DRUP. Note that views expressed are of the author and not Nasdaq, Inc.

Read more at Nasdaq: Agree To Purchase Tesla At $190, Earn 14.6% Using Options