Is anyone buying put options on Tesla's debt maturity dates?
I ask because I've been following this since March 1, 2019, when Tesla repaid some $920MM in convertible debt.
As the chart shows, the share price peaked on Feb 28 at $320 and closed that day at $319.88.
It kept falling, in spite of a few bounces, for the next three months:
And lo and behold, according to the latest quarterly report (released Oct 29), there is $566MM worth of debt being
paid back this month. The story so far:
Given Tesla's perennial cash flow burn, it seems like a clear choice to buy puts at these pre-determined maturity dates,
which takes the guesswork out of it.
You can be young without money, but you can't be old without it.