Options Bulls Hold Out Hope for TSLA Stock

On the other hand, the October 70 put has seen a huge surge in open interest

Digital Content Manager
Sep 30, 2019 at 12:25 PM
facebook X logo linkedin

The shares of Tesla, Inc. (NASDAQ:TSLA) are down at midday, following a note from Cowen regarding the company's upcoming third-quarter deliveries report this week. Specifically, the analyst foresees a slight drop from TSLA's second-quarter numbers, predicting a sequential decline of 11% in Model 3 deliveries, with U.S. sales down 8% for the quarter. Cowen noted that even in the case of a delivery beat, investors reactions could be muted as they anticipate profitability potential, while a miss will likely mean even more downward pressure for the stock.

Caution over TSLA stock is nothing new for the brokerage bunch, with the majority in coverage calling it a "hold" or worse, and a consensus 12-month price target that sits at a slim 4.7% premium to current levels.

Despite this pessimistic analyst sentiment, traders are still showing a preference for calls over puts today, echoing a recent trend. The stock just showed up on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume during the past 10 days, with names highlighted in yellow new to the list. In the last two weeks, roughly 345,253 weekly calls have changed hands on TSLA, compared to about 290,005 weekly puts. 

Most Active Options Sept 30

In fact, data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows that a notable portion of this activity was of the buy-to-open kind. That's because TSLA's 10-day call/put volume ratio of 1.34 sits in the 98th percentile of its annual range.

While calls may be more popular overall, the October 70 put saw a huge surge in open interest during the past two weeks, though it is unclear whether these contracts are being bought or sold. On the other end of the spectrum, the December 275 call also saw a notable increase in open interest.

Taking a broader look TSLA recently managed a bounce off the $220 region, but overhead pressure at the 160-day moving average kept a tight lid on the shares. TSLA has a 27.7% deficit for the year, last seen down 1.7% at $238.08. 

TSLA Sept 30


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI