Why is there PUT option at very low strike price?
There are quite a number of low strike price - $50 put option on the marker. Do people really rhink that $Tesla (TSLA.US)$ will drop to the range in a month time? before end Jan23?
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CHK82 : Now you know
Justin Zacks : Tesla fell $71 in the past month; another $71 loss would put it at $52. Note that while this is the same dollar change it is not the same percentage change.
While a move this big is unlikely, it is not out the realm of possibilities. It is also good to look at the volume. The $50 put for 27 Jan 23 traded 210 contracts today, compare this to the $120 put for 30 Dec 22 which traded over 185,000 contracts today. There are not that many people interested in those very far away strikes at the moment.
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