Shares of Tesla Inc TSLA have plummeted close to 12% over the last five trading days ahead of the company's fourth-quarter results, scheduled to be reported after market close on Wednesday.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that the market is implying a move of more than 10% in the EV maker’s stock by the end of the week. That would be a bigger reaction to a Tesla earnings report than the average move of around 7% over the last eight quarters, he added.
See also: This Metric Will Be The Street's Focus With Tesla For 2022
Calls outpaced puts. There were buyers of 43,700 of the January 28 weekly 950 strike calls for an average price of $35.84 per contract, he said. This implies a move of at least 7% in Tesla’s stock by Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
