Option Bull Throws Down Millions on Tesla Motors, Inc. (TSLA)

A huge long call spread was initiated on Tesla Motors Inc (TSLA)

Digital Content Group
Mar 5, 2015 at 10:35 AM
facebook X logo linkedin


Tesla Motors Inc's (NASDAQ:TSLA) recent momentum is carrying over this morning, with the shares up 1.2% at $204.81 -- putting them on pace for their third straight positive session. Amid this uptick, calls are trading at nearly triple the expected intraday rate, with one speculator placing a brow-raising seven-figure bet.

According to Trade-Alert, one option bull initiated a massive long call spread at the June 225 and 250 calls for an initial cash outlay of more than $2.7 million -- $5.45 net debit per pair of contracts * 5,000 contracts * 100 shares per contract -- which represents his maximum potential risk on the transaction. In other words, this trader is rolling the dice on TSLA rallying as high as the round-number $250 mark by June options expiration.

As alluded to, the auto stock has had a strong past couple days. However, TSLA has been trending lower over the long term -- down 19% year-over-year -- and hasn't toppled the quarter-millennium level since late November.

As such, option players have been placing bearish bets over bullish in recent months at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Tesla Motors Inc (NASDAQ:TSLA) boasts a 50-day ISE/CBOE/PHLX put/call volume ratio of 1.01, which ranks higher than four-fifths of all readings from the past year.

Daily Chart of TSLA since November 2014

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI