Reflections On Investing: The Pricing Game With 0DTE Tesla Options

By Prof. Bradford Cornell of Cornell Capital Group

Investment Management and Advisory Firm • Feb 21, 2023 at 3:38 PM EST

How can an option trade make 4000% in one day? Tesla stock has been highly volatile and one of the drivers of this volatility is the unusually large volume of options trading.

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How can an option trade make 4000% in one day? Tesla stock has been highly volatile and one of the drivers of this volatility is the unusually large volume of options trading. Are large proportion of Tesla option contracts are traded on the day of expiration (zero DTE) and just out of the money. This allows speculators maximum leverage and the small possibility of a significant profit.

Video Length: 00:07:24

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Disclaimer:

Cornell Capital Group LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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