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

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

by Andrea Kramer

Published on Apr 27, 2015 at 11:03 AM
Updated on Jun 24, 2020 at 10:16 AM

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. 


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