TSLA has been popular with bulls and bears alike in the options pits
Tesla Inc (NASDAQ:TSLA) stock is down 7.1% to trade at $224.28 at last glance, one of the worst-performing Nasdaq Composite (IXIC) components today. Barclays lowered its price objective on the equity to $275 from $325, citing “confusing” earnings visibility ahead of the electric vehicle (EV) company’s first-quarter report, which is due out after the close tomorrow, April 22. What's more, Reuters reported production of its cheaper, U.S.-made Model Y car is delayed.
Carrying a steep 44.4% year-to-date deficit, the shares are now on track for their third-straight daily loss. Overhead pressure at the $280 level has been stifling TSLA since early March, while longer-term resistance stems from the declining 40-day moving average.
The security was also one of the most popular names among options traders over the last 10 days, per Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that attracted the highest options volume within that period. TSLA saw more than 13.4 million calls and 13.2 million puts traded. The most active contract was the April 240 put.
From an earnings standpoint, Tesla stock tends to underperform, finishing six of its last eight next-day sessions lower. However, it's also worth noting the security just had back-to-back positive post-earnings reactions. In the last two years, TSLA averaged an 11.3% move, regardless of direction. This time around, the options pits are pricing in a 14.7% swing.
Options look like like a solid way to bet on TSLA's next moves. The stock's Schaeffer's Volatility Scorecard (SVS) of 80 out of 100, suggesting it outperformed options traders' volatility expectations during the past 12 months.