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Tesla Stock Eyes Another Record High After Electric SUV Update

It looks like an attractive time to bet on TSLA's next move with options

Managing Editor
Jan 7, 2020 at 9:03 AM
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Electric car maker Tesla Inc (NASDAQ:TSLA) is back in headlines this morning, fresh off news it has begun production for its Model Y SUV in its new Shanghai factory. Tesla recently announced the delivery of its Model 3 sedans, as well as a 16% price drop on the vehicle after receiving subsidies from China. This morning, TSLA is up 1.3% at $459.07 in electronic trading, set to open at a fresh record high and is pacing toward its fifth straight daily gain. 

Tesla stock saw an impressive bull gap in mid-October, and has since been on tear, wrestling its way to fresh record highs with help from its 10-day moving average. The equity has nearly doubled over the past six months, and now sports a year-over-year gain of 42%.

Despite its recent outperformance, covering analysts remain weary of the stock's future. Coming into today, 15 firms sport a "hold" or worse recommendation, while the remaining six carry a "strong buy." Meanwhile, the the stock's average 12-month price target sits all the way down at $315, meaning a slew of price-target hikes and upgrades are well overdue for the equity.

Regardless of analyst outlook, now looks to be an attractive time for those looking to bet on Tesla stock to do now with options. This is per its Schaeffer's Volatility Index (SVI) of 43%, which sits in the bottom quartile of its annual range. In simpler terms, options players are pricing in relatively low volatility expectations right now.
 

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