Tesla Call Traders Target Deep Out-of-the-Money Strikes

Tesla calls have been popular in recent days

Nov 8, 2019 at 2:26 PM
facebook twitter linkedin


Looking through today's options data, Trade-Alert called out a couple trades in Tesla Inc (NASDAQ:TSLA) this morning that grabbed our attention. Specifically, it looks as though a traders spent roughly $1 million combined buying the June 500 and January 2022 600-strike calls. With TSLA last seen at $335.36, it would need to rally 49% to top $500, and almost 80% to get to $600.

This call activity comes as options indicators are already showing a strong bullish bias in the options pits. Tesla's 10-day call/put volume ratio of 1.46 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 100th annual percentile, with the December 300, 360, and 420 calls all seeing notable increases in open interest during this time frame.

TSLA shares have actually run into overbought territory following their October bull gap, with their 14-day Relative Strength Index (RSI) coming in at 79. To look at it another way, Tesla is trading roughly 40 points above its 20-day moving average.

tsla stock 1

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners