If you’re interested in shorting Tesla stock, you can use a margin account or broker to lend you shares. However, you should know that shorting is a risky strategy. In fact, many short sellers have lost money on the strategy. As a result, many investors are looking for other ways to short the stock.
The most common method is to short the stock – this requires you to have a margin account with a broker and make a bet that the stock will fall in price. The risk associated with this strategy is the highest. Tesla’s stock price is extremely volatile and you’ll have to take the risk of being a short seller if you want to profit.
If you’re shorting Tesla, you’ll want to choose a shorter-term time frame. For example, you could short the December and January 2019 puts. You could also sell the September $250 puts. It would cost you less than $5.60 per month – and would be more profitable than long-dated puts.
As with all investments, there is a risk involved. But short-selling is a viable option if you’re careful and understand how it works. Many investors use it to limit the risks in their portfolio. Short sellers make a profit on shares they borrow from another company.
You can use an exchange-traded product to short Tesla stock, such as Tesla ETPs. These products track the price of the stock every day. If the stock declines, the ETP’s price will rise, whereas if the stock rises, the ETP will fall. As long as you have a margin account, shorting Tesla stock is a fairly simple process. You can also use put options to short the stock.
Despite its controversial nature, Tesla has had one of the best performing stocks in the market for the last decade. However, current headwinds could threaten Tesla’s valuation. Ultimately, the value of Tesla is dependent on market sentiment, and its valuation may change over time. If you want to profit from shorting Tesla stock, you’ll have to sell when the price is high enough.
One of the most popular methods of shorting Tesla stock is by buying puts. However, it’s a risky strategy. If you buy puts, the stock price is going to rise and the options traders will profit from it. Despite all the risks, shorting Tesla is an easy way to make a lot of money.