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Options Bulls Flock to Tesla Stock After Quarterly Win

TSLA is looking to conquer long-term technical resistance

Digital Content Manager
Jan 26, 2023 at 11:00 AM
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Electric vehicle (EV) name Tesla Inc (NASDAQ:TSLA) is extending yesterday's surge, last seen up 9.3% to trade at $157.89, after the company reported better-than-expected fourth-quarter earnings and revenue, the latter of which set a record. What's more, CEO Elon Musk said Tesla could make 2 million cars in 2023.

Options bulls are already responding to the results, with 730,000 calls exchanged so far -- double the volume that's usually seen at this point -- compared to 637,000 puts. Most popular is the weekly 1/27 60-strike call, followed by the 65-strike call in that series, with new positions being opened at both.

Today's penchant for bullish bets is in line with sentiment over the past several weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TSLA sports a 50-day call/put volume ratio of 1.22 that sits in the 94th percentile of readings from the past 12 months.

Echoing this, Telsa stock's Schaeffer's put/call open interest ratio (SOIR) of 0.72 ranks higher than just 1% of annual readings. In other words, short-term options traders have rarely been more call-biased.

What's more, TSLA's Schaeffer's Volatility Scorecard (SVS) stands at 83 out of 100, which points towards the security's tendency to outperform said volatility expectations. 

The equity is currently trading at its highest level in more than one month, and eyeing its first close above the 40-day moving average since September, as Tesla stock rallies off its Jan. 6, two-year low of $101.82.

 
 

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