A $1-Million Bet On Upside To Tesla Stock

Tesla Inc’s TSLA head of artificial intelligence and leader of Autopilot, Andrej Karpathy, Wednesday announced his departure from the company.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said the volume traded in Tesla’s stock on Thursday outpaced the next five highest trading companies combined.

The options market is implying a move of a little under 9% by the end of next week, when Tesla reports earnings, Khouw mentioned. This is much higher than the average move of 5% over the last eight quarters, he added.

Check out stocks making moves in the premarket.

There was a buyer of 3,000 of the August 880/910 call spreads at an average price of $3 per contract, Khouw said. The trader bet $900,000 that Tesla’s stock could rise 27% by August expiration, he added.

TSLA Price Action: Shares of Tesla rose 0.38% in the premarket, after gaining 0.54% to close at $714.94 on Thursday.

Photo courtesy of Tesla.