Strategist Talks Options Activity Amid Tesla Selloff

• Shares of Tesla Motors Inc TSLA fell 6.61 percent on Tuesday and continued to decline on Wednesday, following Consumer Reports' withdrawal of its recommendation on the Model S.
• Benzinga spoke with TD Ameritrade’s Chief Strategist JJ Kinahan, who shared some comments on the Tesla selloff.

Kinahan assured the action reminded him of things he had seen in the drug industry rather than among automakers. The problems highlighted by Consumer Reports are "not good news for anybody," adding that Tesla is "quite a momentum stock."

Investors will have to wait and see if the initial downturn lingers or if the selloff will prove to have been overdone.

Related Link: Doug Kass: I'll Reload My Tesla Short If This Happens

"It's tough to judge on one day's trade, but obviously it was very busy on the stock end and (…) on the options end, three or four times normal. The stock was trading almost three times the normal amount of puts and two-and-a-half times the normal amount of calls."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.