Postponed Product Reveal Pressures Tesla Motors Inc (TSLA) Stock

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk said a highly anticipated announcement has been delayed until Wednesday

Oct 17, 2016 at 10:37 AM
facebook X logo linkedin

Tesla Motors Inc (NASDAQ:TSLA) is 0.9% lower at $194.58, after CEO Elon Musk tweeted that TSLA's new product reveal, which was originally scheduled for today, has been moved back to Wednesday. Separately, TSLA said that -- pending the outcome of a Nov. 17 shareholder vote over its proposed merger with SolarCity Corp (NASDAQ:SCTY) -- it will work with Panasonic to produce solar sells and modules to use in its Powerwall and Powerpack energy storage products. In the options pits, calls are outpacing puts -- 9,070 vs. 6,169 -- echoing a recent trend on TSLA stock.

For instance, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), options traders have bought to open 50,265 calls in the past 10 sessions, compared to 44,106 puts. What's more, the resultant call/put volume ratio of 1.14 ranks in the 69th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual clip.

Additionally, TSLA's Schaeffer's put/call open interest ratio (SOIR) of 1.00 ranks lower than 78% of all comparable readings taken in the past year. In other words, speculative traders are more call-heavy than usual toward options set to expire in three months or less.

In the front-month series, specifically, peak open interest of 14,797 contracts is currently located at TSLA's October 220 call. According to the major options exchanges, a healthy portion of these calls have been bought to open in recent weeks, suggesting traders are eyeing a move north of $220 by this Friday's close -- when the options expire.

Considering TSLA hasn't explored the north side of $220 since late August, it's possible that some of this activity is a result of short sellers hedging their bearish bets against any upside risk. Regardless, the most any call buyers stands to lose -- should their options expire out of the money -- is the initial premium paid.

Technically, TSLA stock has been notching a series of lower highs since topping out at an annual high of $269.34 in early April -- down nearly 28%, and most recently pressured by a scathing outlook from Goldman Sachs. However, Tesla Motors Inc (NASDAQ:TSLA) appears to have found a solid layer of support near $194 -- which sits just above its negative 20% year-to-date breakeven mark.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI