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

Four-Part Edition: Cash-Secured Puts, Covered Calls, Stock Replacement Calls, and Protective Puts

We are finishing this year's editions of Advantage Point Newsletters with a "best of" review of the simple options strategies that should be the basic foundation for any investor.

More education articles »