Tesla Attracts Bearish Bets From Options Traders Following Price Cuts In China

Tesla, Inc. TSLA shares traded lower on Wednesday after the company announced fresh incentives on its inventory of Model S and X vehicles in China.

On CNBC’s "Options Action,"  Kevin Kelly of Kelly Intelligence said there were 1.06x the amount of puts traded versus calls on Tesla.

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There were buyers of 118,385 of the August 225-puts at an average price of $3.00 per contract, Kelly mentioned.

Traders see Tesla’s stock falling further through Friday’s close.

Earlier this week, Tesla also cut prices on the Model Y Long Range and Performance versions within the geography by as much as 14,000 yuan or $1,900.

TSLA Price Action: Tesla shares fell 3.2% to close at $225.60 on Wednesday; the stock was adding 0.68% premarket Thursday.  

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Photo courtesy of Tesla.