This Is How Tesla's Earnings Will Impact Its Share Price

On CNBC's "Options Action," Mike Khouw said that Tesla Inc TSLA, which had sold a record 56,000 cars in China in September, was the most active single-stock option. It beat Apple Inc AAPL by around 400,000 contracts, reaching 1.36 million contracts.

Tesla has been the most active and consistently so for quite some time now. There was short-dated activity earlier, but this week the most active are the Oct. 810 and 820 calls.

See Also: Looking At Tesla's Recent Whale Trades

The company is set to report earnings next week. Right now, the options market is implying a move of approximately 7.7% by Oct. 21.

The active options that expire next week are the 750 strike puts. There were 40,000 contracts trading at around $16 a contract. Traders may be expressing that Tesla’s earnings may pause the stock rally and lead to some pullback.