From Nasdaq:

Investors looking to buy shares of Tesla Inc (Symbol: TSLA) are cautious due to the high market price. Instead of buying shares, they can consider selling the January 2026 put at the $50 strike, with a bid of $1.58, equal to a 3.2% return against the $50 commitment or a 1.6% annualized rate of return.

Selling a put does not give an investor access to TSLA’s upside potential, as they would only own shares if the contract is exercised. A chart shows the historical trading history for Tesla Inc and where the $50 strike is located relative to that history.

The next step is judgment of the reward vs. risks when selling the January 2026 put at the $50 strike for a potential 1.6% annualized rate of return. The volatility is calculated at 52% with call volume at 2.51M and put volume at 1.94M contracts, an unusually high put:call ratio of 0.77.



Read more: Agree To Purchase Tesla At $50, Earn 3.2% Using Options