Is Tesla Worth Buying Here After Its Huge Runup? Shorting Puts Is One Way To Play TSLA

Tesla stock price run-up

Tesla stock price has had a huge run-up in recent years. The stock price has increased by more than 1,000% since the beginning of 2020. What is the basis for such a huge increase? The increase is due to a number of factors, including the company's strong financial performance, the increasing popularity of electric vehicles, and the belief that Tesla is a leader in the autonomous driving space.

Tesla Stock Forecast

Tesla's stock price is currently trading at around $900 per share. The stock is expected to continue to rise in the coming years. Some analysts believe that the stock could reach $1,000 per share by the end of 2022. Other analysts are more conservative and believe that the stock will reach $1,000 per share by the end of 2023.

Is Tesla Stock Worth Buying?

Whether or not Tesla stock is worth buying depends on a number of factors, including your investment goals and risk tolerance. If you are looking for a long-term investment, Tesla stock could be a good option. The company has a strong track record of financial performance, and the electric vehicle market is growing rapidly. However, if you are looking for a short-term investment, Tesla stock may not be the best option. The stock is volatile, and it could experience a significant decline in value in the short term.

Shorting Puts

One way to play Tesla stock is to short puts. Shorting puts is a bearish strategy that involves selling a put option. A put option gives the buyer the right to sell a stock at a specified price on or before a certain date. When you short a put option, you are betting that the stock price will not fall below the strike price of the option. If the stock price does fall below the strike price of the option, you will be obligated to buy the stock at the strike price. This could result in a loss if the stock price continues to fall. However, if the stock price rises, you will profit from the sale of the option. Shorting puts can be a risky strategy, but it can also be a profitable one. If you are considering shorting puts, it is important to do your research and understand the risks involved.