Tesla's Stock Roller Coaster: Making Money from Volatility

Tesla's stock saw a big jump after its earnings report, making investors happy. This jump was so big that it caused a lot of people who bet against Tesla to rush out and buy the stock. This rush made the stock's price change a lot, which is what we call "volatility. " With this volatility, investors can make money by buying options. One clever way to do this is by creating what's called a "synthetic dividend. " This is like getting a little bit of money back from the options, even if the stock stays the same. Tesla's stock is known for being very up and down, and this time it moved even more than usual. Tesla also made a big milestone by producing its 7 millionth electric car. Even though the stock might keep jumping around, some investors think it's a good way to make money in the short term.