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

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


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

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