October will likely be a month full of reports for Tesla, making its shares a gorgeous alternative for shopping for choices, in keeping with Goldman Sachs.
Tesla to current figures and a robotaxi occasion
Next week, Tesla will reveal its third-quarter supply figures. On October 10, the corporate will even maintain a extremely anticipated occasion on its robotaxi developments. John Marshall of Goldman Sachs’ derivatives analysis group mentioned that each occasions may strongly affect the inventory’s worth.
“Mark Delaney, an auto analyst at Goldman Sachs, expects the presentation to include advances in technology and business plans for autonomous driving and robotaxis. On October 2, Tesla will also release its third-quarter production and delivery data, which are estimated to reach 460,000 units, according to Visible Alpha,” the report detailed.
Updates on robotaxis and different areas
The robotaxi occasion may present extra details about the beginning of the service and replace traders on different areas of the enterprise. In July, Tesla shares fell 8% after Bloomberg reported that the occasion had been postponed from August to October.
Tesla Options Strategy
To make the most of this information, Marshall recommends name choices expiring on October 24 and priced at $255 per share.
A name possibility permits an investor to buy shares at a worth decrease than the market worth in the event that they rise above the strike worth. Currently, Tesla shares closed at $254.27, so a small improve would put the choice “in the money” (in revenue).
To make a revenue on choices, the distinction between the strike worth and the market worth should exceed the premium paid for the choice. According to Goldman, Tesla choices are low-cost in comparison with its historical past.
Potential for elevated volatility
“TSLA’s one-month implied volatility index is 67, which is below pre-July 2024 earnings levels. Given the significance of the event, we believe volatility could increase,” the report mentioned.
Risk for choices merchants
However, it is very important think about that if Tesla shares fail to exceed the strike worth, possibility merchants may lose the premium paid.
Tesla’s present efficiency in the market
Tesla shares are up lower than 3% to this point this 12 months, lagging the broader market efficiency.
