Mike Khouw, chief strategist and co-founder of Optimize Advisors, spoke on CNBC about unusually high options activity in Tesla Inc (NASDAQ:TSLA). Khouw said he saw above average call volume in the name on Thursday. He also said he noticed a bullish trade at the beginning of the session for a purchase of 11,000 contracts of the April $600 calls for $12.
Call Option Volume
Trading these type of contracts based on volume is often seen as an indication of deep-pocketed investors or informed traders believing the stock’s price-per-share (PPS) is going to go higher. In this case, this trader is betting on TSLA jumping 8% or more over the course of next week. The trade breaks even at $612 or around 7% above the ticker’s Friday closing price of $573.
In the past 52-weeks, Tesla shares have traded as high as $968 and as low as $176.99. They gained 4.40% to the equivalent of $573 at 4:00 p.m. New York time Friday in Nasdaq trading. The stock, which gained nearly 20% in the past week, leaving it technically and fundamentally in bullish territory, traded as high as $575 and change earlier in the session.
Tesla stock has gained more than 19 percent over the past three months, while the S&P 500 has lost nearly 15 percent. The Nas has slipped 8% during the same time period.