4 ms·

> why not take out a short position? To quote John Maynard Keynes, “The market can stay irrational longer than you can stay solvent"

• mlyle 7y ago
  Yup. And the cost of time on Tesla options right now is insane. $590 puts for April cost ~$66.
  • n00b590 7y ago
    That's not the cost of time you're seeing; it's the implied volatility.
    • mlyle 7y ago
      Sorry for the delayed response--- didn't see your comment. An option's value is its intrinsic value, plus its time value. The time value of an option is mostly sigma, yes. https://en.wikipedia.org/wiki/Option_time_value#Time_value https://en.wikipedia.org/wiki/Option_time_value#Time_value