Tesla Options Traders Betting That Stock Will Surge Above $400 By September Expiration

Tesla, Inc. TSLA shares traded sharply lower on Thursday after the company reported second-quarter results.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Tesla is usually the busiest single stock option, but it nearly doubled its volume on Thursday, and represented 15% of all single stock options volume on Thursday.

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There were buyers of 85,000 of the September 400-calls at an average price of around $1.24 per contract, Khouw said.

Traders expect Tesla’s stock rebounding above the $400 level by September expiration.
Tesla reported second-quarter revenue of $24.93 billion, which was up 47% year-over-year. The revenue total beat a Street consensus estimate of $24.48 billion. Tesla reported a profit of 91 cents per share in the quarter, beating a Street estimate of 82 cents per share.

Price Action: Tesla shares fell 9.7% to close at $262.90 on Thursday, and were up 0.04% during early trading on Friday.

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