Tesla Motors, Inc. (TSLA) Calls Fly Off the Shelves Ahead of Announcement

Tesla Motors Inc (TSLA) call options are popular as the stock surges

Apr 27, 2015 at 11:03 AM
facebook twitter linkedin


Tesla Motors Inc (NASDAQ:TSLA) shot higher out of the gate, and was last seen up 6.4% at $232.37 -- a year-to-date high. In fact, the stock is on pace to finish atop its 200-day moving average for the first time since late November. What's more, ahead of Thursday's big announcement, option traders today are gambling on more upside for TSLA by week's end.

TSLA calls are crossing at three times the average intraday pace, and have practically doubled puts thus far. The equity's 30-day at-the-money implied volatility has popped 2.8% to 46.5% -- above two-thirds of all other readings from the past year -- and options expiring at Friday's close account for seven of the 10 most active.

Digging deeper, it appears traders are buying to open the weekly 5/1 230-strike call -- most popular thus far. The volume-weighted average price (VWAP) of the calls is $4.69, meaning the buyers' profit will accrue the higher Tesla Motors Inc (NASDAQ:TSLA) soars north of $234.69 (strike plus VWAP) by Friday night expiration. In light of the stock's surge, delta on the call skyrocketed to 0.67 from 0.15 at Friday's close, suggesting a roughly 2-in-3 shot of expiring in the money. 

 

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