Dan Nathan's Tesla Trade

Nathan explained that the stock is very correlated to crude oil, but after the announcement of the Model 3 it has outperformed crude oil. He believes that Tesla Motors Inc is going to pull back towards $200 in coming months, because expectations are high and there are not a lot of catalysts until the release of Model 3.

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To make a bearish bet, Nathan wants to buy the June 210 put for $12.50 and sell the April 210 put for $2.50. He is paying $10 for the calendar put spread. He believes that over next couple of weeks the stock is going to trade above $210 and he is going to sell another put if the April 210 put expires worthless.