Elon Musk selected a new CEO for Twitter
Elon Musk is shifting his attention back to Tesla Inc (NASDAQ:TSLA), as the electric vehicle (EV) giant struggles with cooling demand. Musk announced today he selected a new CEO for Twitter, after buying the social media giant for $44 billion last year, fanning concerns his focus would be divided. The billionaire isn't stepping away entirely, though, and will now assume the role of chief technology officer.
Options bulls seem pleased with the update. So far, 532,000 calls have crossed the tape, or four times the intraday average volume, compared to just 211,000 puts. The weekly 5/12 177.50-strike call is the most active contract, with new positions opening there and expiring at the close.
Now looks like a good time to weigh in on TSLA with options, too, per its Schaeffer's Volatility Index (SVI) of 44%, which sits in the low 2nd percentile annual readings. This means options traders are pricing in low volatility expectations at the moment. Plus, its Schaeffer's Volatility Scorecard (SVS) of 91 out of 100 suggests the security has exceeded option traders' volatility expectations during the past year.
Tesla stock was last seen up 1.5% to trade at $174.62, and boasts a 42.8% lead so far in 2023. However, the shares are still grappling with a 27.3% deficit and are seeing overhead pressure at their 40-day moving average for the last month.