Roger DaSilva Highlights Unusual Options Activity In Tesla

Roger DaSilva of Realm Capital Management spoke on CNBC's "Options Action" about unusually high options activity in Tesla Inc TSLA ahead of earnings.

The company is going to report earnings on Wednesday and the options market is implying a move of 8%, which is slightly below its average move of 9%. It should be noted the stock dropped 15% on its last earnings report, which increased the average move.

See Also: Tesla Is By Far The Most Profitable Short Trade Of 2019

DaSilva noticed traders were recently selling to close the November $230 calls, locking some profits and they were buying the November $280 calls. They bought 6,000 contracts of the November $280 calls for $6.70, which sets the breakeven for the trade at $286.70 or more than 12% above the current stock price.

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