Short-Term Bulls Rush Tesla Motors, Inc. (TSLA)

Tesla Motors Inc (TSLA) is booming today, and call options are hot

by

Published on Apr 6, 2015 at 3:18 PM
Updated on Apr 20, 2015 at 5:32 PM

Tesla Motors Inc (NASDAQ:TSLA) calls are running at twice the typical intraday rate, with strikes in the weekly 4/10 series in high demand. In fact, TSLA's 30-day at-the-money implied volatility has jumped 17% to 51%, with TSLA shares up 7% at $204.35.

The stock's two most popular options are the weekly 4/10 205- and 210-strike calls. It looks as though traders are buying to open these contracts in hopes of TSLA toppling the respective strikes by this Friday's close, when the options cease trading. The shares peaked at $207.75 earlier today.

Over the past two months, Tesla Motors Inc (NASDAQ:TSLA) has underperformed the S&P 500 Index (SPX) by roughly 14 percentage points. Today, though, the shares gapped higher after the company reported that it broke its quarterly car sales record. As a result, short sellers might be feeling the heat. Short interest accounts for more than a quarter of TSLA's available float, representing nearly a week's worth of pent-up buying demand, at the equity's average pace of trading.

15-Minute Chart of TSLA since Wednesday, April 1

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Top Lithium Play of 2020
Click to continue to advertiser's site.
First Week in April Provides More Coronavirus-Related Volatility
A slew of coronavirus-related news sent markets on another weekly roller coaster ride
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
The Top Lithium Play of 2020
Click to continue to advertiser's site.