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Mike Khouw Sees Unusual Options Activity In Tesla

Mike Khouw Sees Unusual Options Activity In Tesla

On CNBC's "Options Action," Mike Khouw said that calls outpaced puts in Tesla Inc (NASDAQ: TSLA) by a ratio of 2 to 1 on Tuesday, ahead of the earnings report.

The company is scheduled to report earnings Wednesday, after the market close, and the options market is implying a move of $35, higher or lower. That would be a move of around 8%, which is less than the company's average move on earnings, explained Khouw.

See Also: How To Trade The Netflix And Tesla Earnings Reports Using Options

During the session on Tuesday, Khouw noticed significant activity in the October weekly $450 calls. Around 18,000 contracts were traded for around $9.20 and some of them were actually sold, said Khouw. That suggests that investors don't expect to see the stock's last week highs of just over $460.


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