Tesla Options Volume Jump as EV Maker Sees Millions of Dollars in Bearish Trades
$Tesla Motors(TSLA)$
Shares advanced as much as 7.4% to $395.99 before paring the gains to $394.67. The stock headed for a fourth straight day of gains after media reports that the company got a permit from Nevada's Department of Vehicles to begin testing its autonomous vehicle technology on public roads.
That could take Tesla a step closer to its goal of launching an autonomous ride-hailing service in the U.S., a target that CEO Elon Musk said in July that the company expects to achieve by the end of the year.
About 5.42 million Tesla call and put options changed hands as of 2:31 p.m. in New York Friday. Volume is up from 4.02 million contracts a week earlier and the 20-day average of 1.26 million contracts.
Tesla is poised to reclaim its crown as the most active stock options after being unseated yesterday by $Opendoor Technologies (OPEN.US)$.
The EV maker's 14% four-day rally hasn't dissuaded the bears. At 10:33:04 a.m. in New York, a multi-leg transaction with a combined premium of more than $32 million was posted. Those block trades involved the sale of call options that give their holders the right to buy the stock at strike prices ranging from $380 to $420 each.
The bearish trades were executed as technical indicators started to flash warning signs that the stock could now be overbought after a four-day rally.
Twelve of the 15 most commonly used technical indicators are signaling that the trend could be turning bearish after the recent run-up in the share price. Only the moving averages are flashing a bullish signal, while two others were neutral.
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- JoanneSamson·09-15Interesting take! Are these bearish bets a sign of caution after that big run-up?LikeReport