Rebounding Tesla Stock Remains an Options Favorite

The electric vehicle maker is rebounding from late July lows

Shares of Tesla Inc (NASDAQ:TSLA) were last seen down 0.8% to trade at $339.57. The shares dropped 14.5% on July 23 after reported negative free cash flow and weaker-than-expected earnings overshadowed a revenue beat and higher-than-anticipated capital expenditures. However, the 10-day moving average has supported the stock’s rebound off the $315 level. Year to date, the equity is still down 24%. 

Per Schaeffer’s Quantitative Analyst Rocky White’s list of stocks sporting the most active options over the past two weeks, TSLA saw more than 14 million calls and 8.7 million puts exchanged during this time frame. The most activity was found at the weekly 8/7 330-strike call.

Though calls are winning out on an absolute basis, puts have been more popular than usual during the last 10 weeks. TSLA’s 50-day put/call volume ratio of 0.77 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 86th percentile of its annual range.

Options premiums also appear reasonably priced at the moment. Tesla’s Schaeffer’s Volatility Index (SVI) currently stands at 39%, placing it in the 7th percentile of its 12-month range.