Evaluate each of the three strategies outlined as to risk and reward:

An investor is thinking about a $1 million investment.One alternative is to buy - write the stock, meaning that she will buy $1 million in stock, including fractional shares, and sell January 2022 Call options with a strike price of $700 and a premium of $151.18 per share.The company pays no dividends.This is the so-called Covered Call strategy.

Alternatively, Tesla may well be a dog-with-fleas, where the stock is over-priced.The investor is thinking that she could buy January 2022 Put Options with a strike price of $500 at a price of $109.Again fractional shares may be bought.

Last, the investor can also Sell-Short using the current market price of $640 but that strategy may be more complicated.