Market News

October 18, 2016  Tue 8:02 AM CT

A large investor is betting that Tesla Motors will accelerate by Thanksgiving.

optionMONSTER's tracking program detected the purchase of 3,970 November 200 calls for $7.35 and the sale of 3,970 November 215 calls for $2.90 yesterday. Volume was well above the open interest in both strikes, showing that these are new positions.

This vertical spread is looking for TSLA to rally above $200 by expiration in mid-November. The sale of the higher-strike contracts reduces the cost of the long calls but limits potential gains, as the trader will be obligated to sell shares if they rise above $215. (See our Education section)

TSLA fell 1.3 percent to $193.96 yesterday and is down 13 percent in the last three months. The electric-car maker is scheduled to announce quarterly results after the close on Oct. 26.

Overall option volume was about average in TSLA yesterday.

News Archives
OptionsHouse

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »