Matt Levine’s Money Stuff: Parlay the Predictions

Parlays

One job of modern finance is to give you exactly the bets you want. If you want to buy Tesla Inc. stock, you can do that. If you want to make a more levered bet on Tesla stock, there are options at a wide variety of strike prices and expiration dates that are listed on exchanges; you can click a button on your brokerage app to buy a call option giving you the right to buy 100 shares of Tesla at, say, $465 per share any time between now and, say, Nov. 21.

But what if you have more arcane ...