How to trade Tesla options

Tesla options are popular financial derivatives with traders who are seeking to get exposure to Tesla's share price movements. Here, we explain how to trade Tesla options and what they are.

How to trade Tesla options

You can trade Tesla options with CFDs on our trading platform. With these products, you'll be speculating on the price of Tesla options rather than buying or selling them directly. This gives you a range of tax benefits,1 and it also means you won’t ever need to take delivery of the underlying asset that the option represents. Follow the steps below to get started:

  1. Create or log in to your trading account
  2. Go to our ‘Watchlists’
  3. Select ‘Tesla Options’
  4. Choose the Tesla option you want to trade on according to its strike price, expiry and whether it’s a call or a put
  5. Open, monitor and close your position

Alternatively, you can place a trade over the phone by calling +61 3 9860 1799. Before calling to place a trade, consider the timeframe of your Tesla option – we offer weekly, monthly and quarterly contracts for share options.

As well as Tesla options, we’ve also got options on forex, indices and commodities on our trading platform. If options trading isn’t for you, we offer CFD trading on a range of other markets – including Tesla shares. These products enable you to speculate on prices rising by going long, or falling by going short.

What are Tesla options?

Tesla options are a financial derivative which enable you to trade Tesla stock at a set price (known as the strike price) before a predetermined date (known as the expiry). There are two main types of Tesla options to trade: Tesla calls and Tesla puts.

Interested in trading Tesla options? Here’s how

If you thought the market was going to rise, you’d buy a Tesla call option, but if you thought the market was going to fall, you’d buy a Tesla put option. In both cases, you’d have the right but not the obligation to buy Tesla shares at a set price, before a predetermined date.

Alternatively, you could sell Tesla call options or put options. You’d sell a Tesla call if you thought the price of Tesla shares was going to fall, and you’d sell a Tesla put if you thought the price was going to rise.

As the seller of a call option, you have the obligation to sell the underlying at the strike price if the buyer executes their right to buy. As the seller of a put option, you have the obligation to buy the underlying market at the strike price if the buyer exercises their right to sell.

Please bear in mind that selling options carries an inherently higher risk than buying them.

Learn more about trading options

With us, you can trade CFDs on an option’s price. With these products, you’ll never risk more than your initial payment when buying a call or put option, and you never need to deliver or take delivery of the underlying shares.

Learn about our charges

How much would it cost to trade Tesla options?

At IG, we offer weekly, monthly and quarterly pricing on share options. Their prices are determined by the price feed of an option exchange, around which we wrap our spread – which can often be tighter than those offered in the underlying market.

Footnotes:
1 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Publication date : 2020-02-20T10:32:00+0000


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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