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 spread bets and 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:
- Create or log in to your trading account
- Decide whether you want to trade spread bets or CFDs on Tesla options
- Go to our ‘Watchlists’
- Select ‘Tesla Options’
- Choose the Tesla option you want to trade on according to its strike price, expiry and whether it’s a call or a put
- Open, monitor and close your position
Alternatively, you can place a deal over the phone by calling 020 7896 0000. Before calling to place a deal, 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 spread betting and 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 spread bet and 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.
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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
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