Strategist Weighs In On SolarCity Options Ahead Of Earnings

Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan talked about options data on SolarCity Corp SCTY ahead of Tuesday's earnings release and noted that the stock was up about 12 percent since its last earnings report.

Based on implied volatility, the market expected a move of over 7 percent in the stock, up or down, following earnings, according to Kinahan.

Historical volatility was at the 6th percentile, Kinahan said, while increased option buying was seen on the $60 Calls for both the current week and the following week, with nearly twice the normal volume.

Heading into its Q1 earnings report, SolarCity traded at $59.24, down 2.95 percent.

Brianna Valleskey contributed to this report.