Tesla Options Signal Positioning for Stock's Upward Potential Ahead of EV Maker's Earnings
$Tesla (TSLA.US)$s options market are seeing heavy positioning in call options that give the holders the right to buy the stock at as high as $300 by the end of this week.
That implies higher volatility for a stock that gained 4.9% to $250.95 at 1:44 p.m. Monday in New York, about a day before the electric vehicle is due to report its second quarter earnings. Its chief executive, Elon Musk, said in a social media post that the company could see high production of humanoid robots for other companies in about two years.
Over the past month, shares climbed 37%, after trailing their Magnificent Seven peers since the start of the year. The stock is facing higher volatility as investors, traders and speculators position ahead of Tuesday's financial results. Tesla is expected to report second quarter earnings of about 48 cents a share on revenue of $24.7 billion, according to the average estimate of analysts polled by Capital IQ.
As of early afternoon in New York Monday, almost 800,000 Tesla options changed hands, landing the company in the second slot among the most heavily traded stock options, behind $NVIDIA (NVDA.US)$. (To see the options ranking, click here.)
Call options that give the holders the right to buy Tesla at $300 have 25,620 outstanding contracts, the second biggest open interest among options expiring in four days that are tied to the EV maker.
The biggest open interest is in $265 calls, with 41,750 outstanding contracts. A block trade of 30,790 of those calls was posted on Friday, almost three-quarters of the total open interest.
An active seller stands to collect a premium of $12.34 million for writing those call options, according to data compiled by moomoo.
Share your thoughts on Tesla's prospects below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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White_Shadow DDDDDDDDDDD : that's garbage
White_Shadow DDDDDDDDDDD : penny stock which underperforms
Clement Lemons : ok
Bullish Law : Fantastic performance
104166257 : hi
103539497 : hi
Alen Kok : k
Neil McDonald : Thanks Luzi
ZnWC : You should have an option 270-295
Clement Lemons : ok
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