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

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

Digital Content Group

Apr 6, 2015 at 3:18 PM

TSLA

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

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!

Special Offers from Schaeffer's Trading Partners