Tesla Shares Fall, Puts Popular After Musk Interview

TSLA put options are flying off the shelves this morning

by Josh Selway

Published on Aug 17, 2018 at 10:18 AM
Updated on Jun 24, 2020 at 10:16 AM

Tesla Inc (NASDAQ:TSLA) shares are down 6.3% this morning at $314.36, as Wall Street wakes up to an emotional interview with the New York Times from CEO Elon Musk, in which he discusses the immense stress he's felt in the past year. TSLA stock is already on a three-day losing streak, continuing to pull back from its Aug. 7 peak of $387.46, as the company deals with ongoing regulatory issues following Musk's going private tweet last week.

tsla stock today

Meanwhile, options trading is already taking off this morning with more than 123,000 contracts crossing, three times the paced expected. Puts are outpacing calls, with the August 310 put standing as the most popular option so far. There's also notable activity at TSLA's August 300 and 315 puts.

This heavy activity in Tesla's options pits is just more of the same -- not surprising given all the recent headlines. Total open interest is now at a 52-week peak of 2.03 million contracts, but all this demand has driven up near-term premiums. For instance, the equity's 30-day at-the-money implied volatility was last seen at 56.8%, in the 90th annual percentile.

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