Time to bet against Tesla in the options market, says JPMorgan
It’s time to press bets that Tesla’s stock price, which has already fallen in half from its December peak, will continue to sink. That’s according to JPMorgan analyst Bram Kaplan, who recommends a bearish options wager against the stock based on a mix of fundamental and technical factors.
Tesla tops the list of “attractive 3M 95% put buying candidates” listed in his Tuesday note to clients. The specific recommendation, in this case, is to buy put options that expire in July with a strike price about 5% below its current level at time of publication.
The many struggles that have been contributing to Tesla’s nosedive include:
Increased competition from larger automakers
Oh, and tariffs that will make it way harder to offer the new, cheaper vehicle it’s been promising
Ryan Brinkman, JPMorgan’s analyst covering the company, has a $120 price target and “underperform” rating on the shares, per Bloomberg.
Interestingly, Kaplan also highlights General Mills and Dollar Tree, two typically defensive stocks that have meaningfully outperformed the S&P 500 during this drawdown, as attractive put-buying opportunities.
