Tesla, QuantumScape, Lam Research See Heavy Options Trading After Earnings Beat
$Tesla (TSLA.US)$, QuantumScape and Lam Research are among the stock options attracting the heaviest trading volume so far after the three companies reported earnings that beat analysts' estimates.
The stellar among them was Tesla after the electric vehicle maker's earnings blew past estimates by almost 21%. The $38 gain in the stock price Thursday revived the value of many call options that just yesterday traded well out-of-the-money.
More than 156,770 call options giving the holders the right to buy Tesla's stock at $250 by tomorrow changed hands, making them the most active stock option. The price of the contract jumped more than 1,300% amid increasing demand that likely includes stockholders who sold covered calls and are now buying them back to make sure they won't lose ownership of the shares.
$QuantumScape (QS.US)$ saw more than 129,860 call options change hands as of 11:24 a.m. in New York. That's more than 12 times the average volume over the past 20 days and the highest since July 12, data compiled by Bloomberg showed.
Call options that give the holders the right to buy QuantumScape's shares at $7 by tomorrow attracted the heaviest trading, with volume now at almost 39 times the open interest. The price of the contract surged 100 as shares climbed 20% amid market excitement over the company's announcement that it started producing the first anode-free solid-state lithium-metal cell design ever made for automotive applications.
QuantumScape said it also began shipping the B-sample cells to automotive customer testing, adding that the cells are capable of delivering exceptional performance in terms of energy density, discharge power, charing speed, low-temperature performance and safety.
QuantumScape said it also began shipping the B-sample cells to automotive customer testing, adding that the cells are capable of delivering exceptional performance in terms of energy density, discharge power, charing speed, low-temperature performance and safety.
The update on B-cells overshadowed QuantumScape's wider-than-expected adjusted loss per share of 23 cents. The company's adjusted operating loss of $86.8 million, better than the $103.2 million expected by analysts, according to estimates compiled by Bloomberg.
$Lam Research (LRCX.US)$ options volume has already exceeded the 10-day average with more than four hours left into the trading. The semiconductor equipment maker's shares gained 3.8% after the company painted a rosier outlook for the December, and reported fiscal first quarter earnings that beat analysts' estimates.
The company forecast revenue for the three months ending on Dec. 29 of about $4.3 billion, plus or minus $300 million. That midpoint is higher than the $4.22 billion expected by analysts, according to estimates compiled by Bloomberg.
Earnings per share after the split reached 86 cents, up 10% from the previous three months, the company said. That surpassed the 81 cents expected by analysts, according to estimates compiled by Bloomberg.
Despite the advance in the share price, unusual activities showed two bearish trades Thursday morning. The biggest of them involved an active buyer paying a premium of $139,410 for put options that give the holders the right to sell Lam Research stock at $73 in the next eight days. That strike price is below the current share price of $75.24.
Share your thoughts on Tesla, Lam Research and QuantumScape in the comments section. And if you have a price forecast on Tesla, please vote below.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Optionsbefore 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.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
5770Followers
16Following
16KVisitors
Follow
Alen Kok : OK
QI LUN : Great
Laine Ford : it makes money stock
Laine Ford : money stock here is good to have
104024485 : K
104247826 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
103821365 : good
Adrianlim90 : 1
72433917 : by 17%