Tesla Motors, Inc. (TSLA) Pops, Eleventh-Hour Trades Accelerate

All 10 of Tesla Motors Inc's (TSLA) most active options expire tomorrow


Published on Feb 5, 2015 at 11:03 AM
Updated on Apr 20, 2015 at 5:32 PM

Amid hopes that the automaker could be on its way to lifting a direct-sales ban in Arizona, activity has picked up in Tesla Motors Inc's (NASDAQ:TSLA) options pits, with calls crossing at a 48% mark-up to typical intraday rates. The majority of trader attention has focused on TSLA's weekly series, as all 10 of the stock's most popular contracts expire at the close tomorrow.

Leading the pack are the weekly 2/6 220- and 222.5-strike calls, with some buy-to-open activity possibly occurring at each strike. These traders are betting on TSLA to extend its run above the respective strikes before the close tomorrow, when the contracts expire. At last check, these contracts were already in the money, with the stock up 3% at $225.21.

TSLA calls have become more popular over the past two weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day call/put volume ratio of 1.36 ranks in the 74th annual percentile, meaning calls have been bought to open over puts at a greater rapidity than normal. Yet, with over a quarter of the equity's float sold short -- representing almost five days' worth of trading, at normal daily volumes -- some of this activity may be bears hedging their bets ahead of earnings next week.

Technically speaking, since hitting an all-time high of $291.42 in early September, Tesla Motors Inc's (NASDAQ:TSLA) has lost close to 23%. However, the security has already added more than 10% this week, and is poised to finish atop its 10-week moving average for the first time since late November.

Daily Chart of TSLA Since February 2014

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