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 (NASDAQ: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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