Options Corner: TSLA

Core Insights - Tesla shares are experiencing pressure in pre-market trading despite a strong performance in September, with notable increases in vehicle registrations in France and Denmark [1][2] - The company is raising lease prices for all vehicles following the expiration of US electric vehicle credits, with the Model 3 lease price increasing from $429 to $759 [1] Group 1: Market Performance - Tesla's September performance was strong, significantly outperforming legacy automakers such as General Motors, Ford, and Toyota, as well as other American and Chinese EV manufacturers [3][4] - The stock has rallied 33% in September, bouncing off April lows and aiming for all-time highs seen in December [8][9] Group 2: Technical Analysis - Current technical indicators show a mixed picture, with the RSI trending downward but remaining in the overbought area, indicating potential bearish divergence [6] - Key price levels to watch include a support level around $440 and an upside target near $463, with a potential move of 10.7% expected in the next 16 days [5][7] Group 3: Options Strategy - A neutral to bearish options strategy is being considered, involving selling an out-of-the-money 470 strike call and buying a 490 strike call to define risk [10][11] - The strategy has a high probability of success, with a 70% chance that the 470 strike will remain out of the money, allowing for profitability if the stock remains below the break-even point of $474.50 over the next two and a half weeks [11][12]