$TSLA Tesla - Next stop $200? Unusual Put Options Activity

3 Okt 2018

TSLA - Tesla's long term weekly chart is in a clear downtrend, putting in lower highs and lower lows fairly consistently since late June.

We saw some big put volume today (60M+) on very deep-in-the-money Jan'19 puts for huge per contract premiums (25K-30k). My guess is this is a hedge fund making an earnings play with high delta contracts, expecting carnage post-earnings in early November. It will be interesting to see if these remain open after mid-November.

If the earnings news does turn out to be negative, I expect we drop to at least $200 by January, with stronger support below at $180.


Note: Informational analysis, not investment advice.