Tesla Stock Trading at Highest Level Since April

Call volume is running at nearly double the amount typically seen at this point

Assistant Editor
Sep 8, 2021 at 10:09 AM
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The shares of Tesla Inc (NASDAQ:TSLA) were last seen 0.6% higher to trade at $757.18, after the electric car manufacturer revealed upbeat August sales in China. Per the China Passenger Car Association (CPCA), Tesla saw China-made vehicle sales soar to 12,885 locally, versus 8,621 cars sold in July. This report comes after Tesla introduced a cheaper version of the Model Y in the region, on the heels of increased scrutiny from regulators and the public alike.

Following the news, a healthy amount of call speculation amongst the brokerage bunch is taking place. In the first hour of trading 131,000 calls have crossed the tape, nearly double the intraday average, versus 55,000 puts. The most popular by far is the weekly 9/10 770-strike call, where new positions are being opened.

The penchant for calls is nothing new. TSLA's 50-day call/put ratio of 1.75 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), stands higher than 96% of readings in its annual range, indicating that calls have been picked up at a faster-than-usual clip in the last two months.

The good news for these options traders is Tesla's Schaeffer's Volatility Scorecard (SVS) comes in at 88 out of 100, indicating the equity has exceeded options traders' volatility expectations of the past year -- a boon for buyers. 

On the charts, Tesla stock is trading at its highest level since February. And while the equity boasts an impressive 128% year-over-year lead and is coming off three straight winning months, TSLA up just 6.7% year-to-date. 

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