Tesla Stock Is Trading Within The Price Range For Major TSLY ETF Outperformance
Summary
- YieldMax TSLA Option Income Strategy ETF's holding composition aligns with our expectations, where the hype around FSD and Robotics will keep Tesla, Inc.'s valuation high with an additional small probability of a major melt-up.
- The TSLY ETF's current portfolio is evenly distributed among Bull Puts, Call Credit Spreads, and Long Naked Call, each with precisely 30,743 contracts.
- TSLY will profit proportionally to TSLA if TSLA trades between $407-$440 and above $472, and outperforms TSLA if TSLA trades below $435.
- Given that TSLA is trading at $412.38 at the time of this writing, TSLY offers investors favorable odds to outperform TSLA despite past underperformance.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TSLY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.