Tesla earnings hedge: a $375 put could guard a 100-share position
Ahead of Tesla’s earnings, investors can shield a 100-share position by buying a July 24 put with a $375 strike. The contract costs about $10.25 per share (roughly $1,025 total), creating a floor of about $364.75 through Friday to offset potential post-earnings declines. The hedge highlights the role of implied volatility (around 82%), which makes short-term protection expensive and most valuable only if the stock moves downward; if Tesla holds steady or rallies, much of the premium can expire worthless.