Tesla Motors, Inc. (TSLA) Shoots Higher as Musk Touts Model S

Judging by the data, now might not be a bad time to purchase Tesla Motors Inc (NASDAQ:TSLA) options

Jun 23, 2015 at 2:43 PM
facebook X logo linkedin


Tesla Motors Inc (NASDAQ:TSLA) is up 2.8% today at $266.92, extending its recent uptrend. Specifically, the shares have been gaining since touching an annual low of $181.40 on March 27, adding over 47%. It's also been a good time for the company's top car, the Model S, which joined Mattel, Inc.'s (NASDAQ:MAT) Hot Wheels family just last week. Today, the car is being credited for holding more resale value than its peers.


Obviously, that tweet comes from Tesla CEO Elon Musk, but he's citing a report from the National Automobiles Dealers Association (NADA). However, this isn't the first time Musk's tweets have lifted the stock.

Today, option activity on the equity is running roughly in line with the expected intraday amounts. However, TSLA's 30-day at-the-money implied volatility hit a 12-month low earlier. Moreover, the stock's Schaeffer's Volatility Index (SVI) sits at 28% -- only 1 percentage point from an annual low. In other words, TSLA's short-term options are attractively priced, from a volatility standpoint.

Previously, it's been TSLA option bulls who have taken center stage, as the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.33 is higher than 76% of readings from the past year. Said simply, call buying has been more popular than normal.

Of course, more than one-fourth of Tesla Motors Inc's (NASDAQ:TSLA) float is sold short, which would take almost eight sessions to repurchase, at the stock's normal daily volumes. It could be the case, then, that some of the recent call buying is from shorts hedging against any additional upside.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI