TSLA default protection trade

by hanudu

Someone took advantage of the pop in the stock and

paid $0.44 for 631 of the June 2022 $5 strike puts

The stock is trading around 500. Risking $0.44 to make $4.56, so getting more than than 10 to 1.

This might be someone that is long TSLA bonds or has some other exposure to its credit and is protecting it. TSLA had $11.6 billion of long term debt as of Dec 2019.

Sources of above info:

finance.yahoo.com/quote/TSLA/options?p=TSLA&date=1655424000

www.volsage.com/activityInName.php?ticker=TSLA

finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.