Options Traders Eye Tesla Stock Before Earnings

Tesla reports earnings after the close on Wednesday

Electric vehicle giant Tesla Inc (NASDAQ:TSLA) is a regular on Senior Quantitative Analyst Rocky White’s list of stocks that attracted the most options volume during the last two weeks, and this most recent period is no different. TSLA is second on the list ahead of the company’s latest earnings report, due out after the close on Wednesday, Oct. 23. 

Over the last 10 days, Tesla stock has seen 8,908,453 calls and 5,475,024 puts traded. The October 220 call was the most popular during this time period, followed by the 225 call in the same series. 

MAO Oct21

Earnings will likely mean plenty of volatility for TSLA this week. The stock has a history of outsized post-earnings moves, averaging a 10.4% next-day swing over the past two years, regardless of direction. This time around, the options pits are pricing in a 9.5% move. Of its last eight reports, the tech giant moved lower after five. 

TSLA has yet to recover from a bear gap that occurred earlier this month, after the company’s robotaxi reveal fell flat amongst analysts and investors. Since the start of the year, the equity is down 12.5%. 

  

Leave a Reply

Your email address will not be published. Required fields are marked *