Options Traders Expect Tesla To Zoom Ahead

Shares of Tesla Inc TSLA spiked on Tuesday after the company announced layoffs amid supply chain bottlenecks.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Tesla traded more than 1.25 million contracts on Tuesday, making it the busiest single-stock options for the day. Bullish bets outpaced bearish ones, he added.

Check out other stocks making big moves in the premarket.

There was a buyer of 1,000 of the Weekly 775/780 call spreads at 80 cents per contract on average, Khouw mentioned. The trader sees shares of Tesla climbing at least 9% by the end of the week, he added.

TSLA Price Action: Shares of Tesla spiked 9.35% to settle at $711.11 on Tuesday.

Photo courtesy of Tesla.