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TSLA options help

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

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  1. KUKABUKA

    KUKABUKA New Member

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    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

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    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

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    Are these perhaps TSLA1 calls, which are actually converted Solar City calls? If so, they only deliver 11 shares, not 100.
     
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  4. AveFuture

    AveFuture New Member

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    would still be a steal though
     
  5. neroden

    neroden Happy Model S Owner

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    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

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    Cheers that's what it was. Now I know to watch for that!!
     
  7. KUKABUKA

    KUKABUKA New Member

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    Cheers you are correct!
     

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