Tesla Shares Have More Downside Left: Michael Khouw

Tesla Inc’s TSLA 3-for-1 stock split kicked in on Thursday. Shares have lost more than 10% since the company announced the split in March.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Tesla was the most active single stock option on Thursday. If you had one call contract, now you have three, he said. 

Check out other stocks making moves in the premarket.

There were buyers of 2,928 of the October weekly 220-puts at an average price of $4.80 per contract, Khouw mentioned. Traders bet $1.4 million that Tesla’s stock will lose at least 27% by October expiration, he added.

TSLA Price Action: Shares of Tesla declined by 0.35% to settle at $296.07 on Thursday.

Photo courtesy of Tesla.