TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

TSLA options help

Discussion in 'TSLA Investor Discussions' started by KUKABUKA, Feb 9, 2017.

Tags:
  1. KUKABUKA

    KUKABUKA New Member

    Joined:
    Feb 9, 2017
    Messages:
    3
    Location:
    Canada
    Hello, I'm new to the land of trading options but I think I have a good grasp of them on the basic level. That being said, I don't know how the following makes any sense:

    Questrade is showing me CALLS for Jan 18th 2019 with a strike price of $20 and only at a cost of ~$12. These calls are being traded, there's volume, bid sizes and ask sizes > 0. There are various CALLS around a similar price range.

    Now my understanding was that I could purchase 100 of these for $12 x 100 = $1200. I could then immediately exercise these options (is this wrong?) and purchase 100 shares of TSLA at a total cost of $20 x 100 = $2000. I could then sell these shares at ~$268 each for a grand total of $26800. Minus costs (ignoring exercise fees as they're nearly negligible here) and I'd be left with a profit of $23 000 ??

    What am I missing? Are these options simply not actually available? I see other calls for Jan 2019 that seem far more realistic like $72 dollar cost for a $230 strike price.

    Cheers and thanks for the help
     
  2. AveFuture

    AveFuture New Member

    Joined:
    Feb 9, 2017
    Messages:
    2
    Location:
    Amsterdam
    lol, if u can buy them at that price it would be fun. i think the bid/ask thingy is screwed up.
     
  3. ggr

    ggr Roadster R80 537, SigS P85 29

    Joined:
    Mar 24, 2011
    Messages:
    3,918
    Location:
    San Diego, CA
    Are these perhaps TSLA1 calls, which are actually converted Solar City calls? If so, they only deliver 11 shares, not 100.
     
    • Like x 1
  4. AveFuture

    AveFuture New Member

    Joined:
    Feb 9, 2017
    Messages:
    2
    Location:
    Amsterdam
    would still be a steal though
     
  5. neroden

    neroden Happy Model S Owner

    Joined:
    Apr 25, 2011
    Messages:
    7,457
    Location:
    Ithaca, NY, USA
    You're probably seeing TSLA1 calls -- conversions of SCTY calls. $20 means $181.8181... per share, $12 means $109.0909... per share, and the calls are for 11 shares each.

    So you'd be buying 11 shares at $290.9090... each.
     
  6. KUKABUKA

    KUKABUKA New Member

    Joined:
    Feb 9, 2017
    Messages:
    3
    Location:
    Canada
    Cheers that's what it was. Now I know to watch for that!!
     
  7. KUKABUKA

    KUKABUKA New Member

    Joined:
    Feb 9, 2017
    Messages:
    3
    Location:
    Canada
    Cheers you are correct!
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC