Tesla Robotaxi Reveal, How To Profit From Option Strategies?

Tesla's highly anticipated "Robotaxi Day" demonstration event will be held on 10th October, Eastern Time. Musk once posted on the social platform X that this will be "one for the history books" and is seen as another important milestone for the company since the launch of Model 3.

Tesla is expected to showcase its Robotaxi prototype designed for autonomous driving, the "Cybercab". The design concept of this model is fully automated, and it may not include a steering wheel and pedals, relying entirely on Tesla's fully autonomous driving (FSD) software.

The manufacturing cost of Cybercab is expected to be very low, aiming to provide a ride fare close to bus fares, and is expected to achieve mass production in 2025.

Musk once said that Tesla's long-term future is centered on the Optimus humanoid robot:

But in fact, since the release of Optimus in 2022, the company has provided almost no updates on the progress.

Analysts at Wall Street investment bank Bernstein said that Tesla may have updated the progress of Optimus a long time ago, and its caption "We, Robot" in this event may imply that this plan includes relevant progress.

Historically, Tesla's new product releases have a significant impact on its stock price. For example, after the release of Model 3 in 2016, the stock price rose by 12% in the short term, but after the launch of Optimus in 2022, the stock price fell by 16%.

Looking back at Tesla's stock price in 2024, it has experienced large fluctuations. As Robotaxi Day approaches, the stock price has also recovered since early September. Investors are paying close attention to whether Tesla can use the event to further solidify its positioning as an AI company.

To maximize gains during the critical event of Robotaxi Day, we can focus on the following options strategies:

1. Call Options

Buying call options is a way to get greater gains when the stock price rises. If the market reacts positively to Robotaxi Day, the stock price may rise sharply, and buying call options allows investors to buy Tesla shares at a lower strike price. Investors can also choose options with a closer expiration date to make a quick profit after the event.

If you predict that the stock price will not perform as expected and there is a risk of decline, you can buy put options. Of course, for investors who already hold Tesla shares, they can also lock in losses by buying put options, thereby reducing overall risk.

If you believe that Robotaxi Day will cause stock prices to fluctuate drastically, but are unsure of the direction, investors can consider using option combination strategies, such as Straddle. By simultaneously purchasing call and put options with the same strike price, you can profit when stock prices fluctuate drastically, whether they are rising or falling.

Tesla will release its third-quarter 2024 financial report on 23rd October, Eastern Time. After the release of the financial report, the company will hold an earnings conference at 4:30 pm Eastern Time on the 23rd.

What do you think about the Tesla's subsequent stock price trend? Welcome to comment and share your views!