Options Heat Up as Tesla Motors Inc (TSLA) Snaps Cold Spell

Tesla Motors Inc (NASDAQ:TSLA) is bucking the broad-market trend lower, up 0.6% at $194.30. If the stock can carry these gains through the close, it would represent the first positive session since the electric automaker offered to buy SolarCity Corp (NASDAQ:SCTY) -- a move widely panned across Wall Street. Amid the upbeat session, TSLA options players are trading at a slightly accelerated rate.

Taking a quick step back, it's not exactly clear why Tesla's bouncing back. However, according to at least one report, the company raised additional funds toward building a "Gigafactory" by selling $20 million worth of tax credits to MGM Resorts International (NYSE:MGM).

As alluded to, TSLA options are crossing the tape at a faster-than-usual clip, with 91,000 contracts traded versus an expected 72,000. Looking more closely, potential buy-to-open activity is detected at a number of strikes in the weekly 7/1 series -- which account for nine of the 10 most popular strikes.

Slightly longer-term traders may be buying to open TSLA's July 230 call, expecting over 18% upside between now and July expiration. Historically speaking, the shares traded above $230 as recently as June 9, but due to the ensuing sell-off, delta on the out-of-the-money option is just 0.06, or 6%. As such, it's possible these call buyers may be short sellers attempting to hedge against a surprise short-term rally -- especially since 27% of the stock's float is sold short.

Generally speaking, when it comes to traders targeting near-the-money Tesla Motors Inc (NASDAQ:TSLA) options in the July series, there's a pronounced preference toward puts over calls. Specifically, the stock's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) sits at 2.09, with puts more than doubling calls.

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