Tesla Has Options Traders at Their Most Optimistic Since 2021

Jun 14, 2023 thejournalbiz

Options traders are trying to ride Tesla shares’ hot streak, though the stretch of daily gains may soon snap.

The stock, recently down less than 1%, finished Tuesday on a 13-day win streak, its longest on record.

Tweet on tesla trade options

@Tesla Options Traders at Their Most Optimistic Since '21!
Options traders are trying to ride Tesla shares' hot streak.
Options tied to Tesla rising to $260 are the second-most traded stock-option contract on Wednesday.#Tesla #stocks pic.twitter.com/83aEg3yVdh

— The_Journalbiz (@the_journalbiz) June 14, 2023

Chart by Cboe on tesla trade options

Meanwhile skew, an options-based measure of pessimism vs. optimism tied to the stock, has fallen to its lowest level since January 2021, according to Cboe data.

That reflects a growing demand for bullish call options, which give the right to buy shares at a certain price and date, tied to Tesla stock, relative to bearish put options, which confer the right to sell.

Options tied to Tesla rising to $260 are the second-most traded stock-option contract on Wednesday.

Trader FOMO, or fear of missing out, could be driving the demand given how persistent Tesla’s rally has been. The stock has more than doubled this year so far.