Options News
$TSLA bears double money
Shares of Tesla (TSLA) are falling today, delivering big gains to downside option positions. On Nov. 16, Market Rebellion’s Unusual Option Activity Service found that 3,500 Weekly $155 puts, expiring on Dec. 30, were bought for $4.60 to $4.80 above the existing open interest of 329 contracts with shares at $192.07. Those puts traded up to […]
Shares of Tesla (TSLA) are falling today, delivering big gains to downside option positions.
On Nov. 16, Market Rebellion’s Unusual Option Activity Service found that 3,500 Weekly $155 puts, expiring on Dec. 30, were bought for $4.60 to $4.80 above the existing open interest of 329 contracts with shares at $192.07.
Those puts traded up to $12.20 today, over 2.5 times their purchase prices. The stock declined 24.06% in the same time period, a large move but nowhere near that of its options on a relative basis.
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.
TSLA ended the session down 0.24% to $149.87.
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