Screen capture via Portfolio Armor. We'll have to see how news of the latest crash impacts Tesla shares, but given that Tesla's full self-driving capability hasn't been released in beta yet, we suspect the impact of this on Tesla shares won't be large. In Case We're Wrong The reason we sort our top names by potential returns net of hedging cost is that, like everyone else, our predictions are wrong sometimes. And when they're wrong, we want your downside to be strictly limited. If you're long Tesla, here are a couple of ways you can hedge your bet in case we're wrong about it. Uncapped Upside, Positive Cost This one's a bit pricey. Let's say you were willing to tolerate a 25% drop in your Tesla shares over the next ~6 months, but not one larger than that. If so, these were the optimal, or least expensive put options to do that, as of Friday's close. This and the following screen captures via the Portfolio Armor iPhone app. As we said, this one's a bit pricey: the cost here was $6,505, or 8.79% of position value. That cost was calculated conservatively, using the ask price of the puts (in practice, you can often buy and sell options at some price between the bid and ask). Capped Upside, Slightly Negative Cost If you were willing to cap your potential upside at 30% over the next six months (an annualized return even more ambitious than Cathie Wood's), this was the optimal collar to hedge against the same, >20% decline as the previous hedge. With this one, the net cost was slightly negative, meaning you would have collected a net credit of $15 when opening the collar, assuming, to be conservative, that you placed both trades (buying the puts and selling the calls) at the worst ends of their respective spreads. Go For The Cheaper Hedge? If cost is your main concern, then yes. If you want to maximize your return net of hedging cost, it depends.