Call Buyers Respond to Tesla Motors, Inc. (TSLA) Spike

Tesla Motors Inc (TSLA) is popping on positive analyst attention

Digital Content Group
Feb 2, 2015 at 1:25 PM
facebook twitter linkedin


Tesla Motors Inc (NASDAQ:TSLA) puts have been in high demand in recent months -- which isn't surprising, considering the shares have underperformed the broader S&P 500 Index (SPX) by 14 percentage points over the last three months. Specifically, the stock's 50-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at an annual high of 1.11.

Today, however, with TSLA up 3% at $209.65 -- thanks to a price-target hike to $385 at Global Equities Research -- call volume is accelerating. Specifically, the contracts are being exchanged at 1.3 times the average intraday clip, and short-term strikes are in demand, per the security's 30-day at-the-money implied volatility -- up 3.1% to 52.6%.

Digging deeper, buy-to-open activity is transpiring at TSLA's weekly 2/6 210- and 215-strike calls. In other words, these traders expect the stock will topple the respective strikes by this Friday's closing bell, when the weekly series expires. However, Tesla Motors Inc (NASDAQ:TSLA) hasn't closed a week atop either level since early January, and the shares are currently testing resistance at their descending 10-week moving average (at $211.05).

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners