Or simply define risk/reward (spreads and the like). That's especially useful if you want to sell premium and not risk getting killed.
If a stock is volatile, as TSLA is, the out of money (OTM) options will take that into consideration and the premium for it will be very very high.
A OTM straddle options trade probably a very bad choice. Like you said, if TSLA don't make a big move, you will lose. Even if they do make a big move, you will still lose because you are opening a trade on both directions.
My personal opinion on options is this: 1. Find stocks that move 2. Buy in the motion options 3. Expiration at least 6 weeks away, prefer to be longer. If price move into your target, great, take profit early.
The premium on a 10% move option wouldn't be as high as you think. There's a lot of risk/reward here.
You'll pay a really high premium if your prediction is 'i think it will go up 2% in the next 9 months" :)
An option is a bet on the future price of a stock. If you think that Stock XYZ will go from $15 today to $20 next month, you can buy an option that will reflect your prediction.
A multi-leg option allows you to bet on the "magnitude" of a stock's price change, rather than the "direction".
For example: "Tesla reports earnings next month. They're either gonna be REALLY good, or REALLY bad. So let me buy a multi-leg option that predicts a 10% price jump either up or down". You'll make money whether Tesla goes up 10% or down 10%. You'll lose a ton of money if Tesla remains roughly the same price.