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Dan Nathan Sees Unusual Options Activity In Tesla

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On CNBC's "Options Action," Dan Nathan spoke about unusually high options activity in Tesla (NASDAQ: TSLA) ahead of earnings.

The company is going to report earnings on Wednesday after the market closes and the options market is implying an 8.5-percent move in either direction. On Tuesday, options traders bought more puts than calls in Tesla as puts outnumbered calls 1.5 to 1.

When the stock was trading at $263.60, Nathan noticed a purchase of 2,200 contracts of the August 220/110 put spreads. The trader paid $13 for them which sets the breakeven for the trade at $207. The maximal profit for the trade is $97.

See Also:

Technical Levels To Watch Ahead Of Tesla's Q1 Earnings

Wall Street Weighs In On Tesla's Autonomy Day Presentation

 

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Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media