TSLA Stock & Options Analysis

Anonymous

please fetch price data for TSLA stock and call options with strick price $240 and$ 280 which expire in december 2024

create a graph showing different profit scenarios, like what would be the profit if TSLA ends up at $280 in december 2024, what if$ 300, $320 and so on

think about a nice way to show this so we can compare it

I'm only interested in the pure profit

If I invest $100 into TSLA directly what would be the profit compared to investing$ 100 into different call options

Grimoire

To create a graph showing different profit scenarios for TSLA stock and call options with strike prices of $240 and$ 280 expiring in December 2024, we need to follow these steps:

Fetch Price Data for TSLA Stock and Call Options:
- We will use financial data APIs (like Yahoo Finance API) to fetch the current price of TSLA stock.
- Fetch the premium (cost) of the $240 and$ 280 strike price call options expiring in December 2024.
Calculate Profits for Different Scenarios:
- Define scenarios: TSLA stock price at $280,$ 300, $320, etc., in December 2024.
- Calculate the profit for direct investment in TSLA stock and for each call option under these scenarios.
- For direct investment: Profit = (Future Stock Price - Current Stock Price) * Number of Shares.
- For call options: Profit = Max(0, Future Stock Price - Strike Price) - Premium Paid for the Option.
Graph Construction:
- X-axis: Different scenarios of TSLA stock price in December 2024 ( $280,$ 300, $320, etc.).
- Y-axis: Profit in dollars.
- Create different lines/curves for:
  - Direct investment in TSLA stock.
  - Investment in call option with $240 strike price.
  - Investment in call option with $280 strike price.
Comparative Analysis:
- Analyze the graph to compare the profits from direct stock investment versus investing in call options.
- Show breakeven points for each investment type.

Since I can't fetch live financial data, I'll use placeholder values for the current TSLA stock price and option premiums. These will need to be replaced with real-time data for accurate results. Let's proceed with the implementation.

Grimoire

The graph above illustrates the profit scenarios for a $100 investment in TSLA stock and call options with strike prices of$ 240 and $280, across different TSLA stock price scenarios in December 2024.

The blue line represents the profit from directly investing $100 in TSLA stock.
The orange line shows the profit from investing $100 in a call option with a$ 240 strike price.
The green line indicates the profit from a $100 investment in a call option with a$ 280 strike price.

The X-axis represents potential future prices of TSLA stock, ranging from $280 to$ 400. The Y-axis shows the corresponding profit in dollars. The grey horizontal line at Y=0 indicates the breakeven point.

Please note that this graph is based on placeholder values and should be updated with real-time financial data for an accurate analysis.

🔍 Explore Further Options (E): Dive deeper into different investment strategies or option types.

📈 Graph Adjustments (A): Modify graph settings or add more scenarios.

❓ Clarify Understanding (Y): Ask questions to deepen your understanding of stock and options trading.

Anonymous

i updated the script like this:


1import matplotlib.pyplot as plt
2import numpy as np
3
4# Placeholder data
5current_tsla_price = 240  # Current price of TSLA stock (example value)
6option_240_premium = 52  # Premium for $240 strike call option (example value)
7option_280_premium = 35  # Premium for $280 strike call option (example value)
8investment = 100  # $100 investment
9
10# Number of shares and options one can buy with $100 investment
11shares_bought = investment / current_tsla_price
12options_240_bought = investment / option_240_premium
13options_280_bought = investment / option_280_premium
14
15# Define scenarios for future stock prices
16future_prices = np.arange(280, 401, 20)
17
18# Calculate profits for each scenario
19stock_profit = (future_prices - current_tsla_price) * shares_bought
20option_240_profit = np.maximum(0, future_prices - 240) * options_240_bought - investment
21option_280_profit = np.maximum(0, future_prices - 280) * options_280_bought - investment
22
23# Plotting the graph
24plt.figure(figsize=(10, 6))
25plt.plot(future_prices, stock_profit, label='Direct Investment in TSLA Stock')
26plt.plot(future_prices, option_240_profit, label='Call Option ($240 Strike)')
27plt.plot(future_prices, option_280_profit, label='Call Option ($280 Strike)')
28
29plt.xlabel('Future TSLA Price in Dec 2024 ($)')
30plt.ylabel('Profit ($)')
31
32plt.title('Profit Scenarios for $100 Investment in TSLA Stock and Call Options')
33plt.axhline(0, color='grey', lw=1)  # Breakeven line
34plt.legend()
35plt.grid(True)
36plt.show()

Grimoire

Your updated script looks good. You've adjusted the current price of TSLA stock and the premiums for the $240 and$ 280 strike call options. These changes will reflect in the new profit scenarios for a $100 investment in TSLA stock and the specified call options.

The script will now calculate and plot the profit scenarios based on your updated data:

The current TSLA stock price is set to $240.
The **premium for the $240 strike call option** is$ 52.
The **premium for the $280 strike call option** is$ 35.

Let's execute the updated script to generate the new graph with these adjustments.

Grimoire

The updated graph now reflects the profit scenarios for a $100 investment in TSLA stock and call options with the new parameters:

Current TSLA stock price: $240
**Premium for the $240 strike call option**:$ 52
**Premium for the $280 strike call option**:$ 35

The graph shows how these investments would perform at different future TSLA stock prices, ranging from $280 to$ 400. The profit from each investment type is calculated and plotted, helping to visualize and compare potential returns.

🔍 Explore Further (E): Consider additional variables or investment options.

📈 Graph Tweaks (A): Adjust the graph settings or add more price points.

❓ Clarify Concepts (Y): Ask about option trading strategies or stock market analysis.

Anonymous

make the 280 green and the 240 blue and start the x axis at 240

Grimoire

The graph has been updated with your specifications:

The $240 strike call option is now represented in blue.
The $280 strike call option is shown in green.
The X-axis starts at $240, aligning with the current TSLA stock price.

This visualization provides a clearer comparison of the profit scenarios for direct investment in TSLA stock, the $240 strike call option, and the$ 280 strike call option, based on different future TSLA stock prices.

📊 Further Analysis (E): Explore more detailed financial analysis or additional scenarios.

👨‍💻 Script Modifications (A): Adjust or add more features to the script.

❓ Understand Options (Y): Dive deeper into options trading and strategies.

Anonymous

the direct stock price should be black and all the lines should start at 240 not 280

Grimoire

The graph has now been updated with the requested changes:

The line representing direct investment in TSLA stock is in black.
All lines, including those for the call options and direct stock investment, start at a TSLA stock price of $240.

This graph provides a clear visual representation of how the profits from direct stock investment and the two call options (with strike prices of $240 and$ 280) would vary with different future TSLA stock prices, starting from the current price of $240.

📊 Analyze Further (E): Consider additional financial variables or scenarios for analysis.

👨‍💻 Adjust Script (A): Make further modifications to the script for different analyses.

❓ Learn More (Y): Expand your understanding of stock market dynamics and option trading.