Implied Volatility Mover
Implied volatility in the options on Tesla (TSLA) is falling today after the company announced new financing deals for its all-electronic vehicles. The highly anticipated announcement was made after the closing bell yesterday and there had been much chatter about what the company would announce after Tesla founder and CEO Elon Lusk tweeted to his followers last week that something “exciting” was to be released. The reaction in the market was less than inspired this morning, however, as TLSA dropped $3.29 to $41.05. Trading in the options remains brisk. Another 27K calls and 26K puts. Implied volatility eased 14 percent to 49.
Volume Signals
Tesla (TSLA) options volume is running 2.5X the (22-day) average, with 51,000 contracts traded and call volume accounting for 50 percent of the volume.
Dean Foods (DF) options volume is 4.5X, the average daily, with 19,000 contracts traded and call option volume representing 65 percent of the activity.
Phillips 66 (PSX) options volume is running 2X the average daily, with 16,000 contracts traded and call volume accounting for 59 percent of the activity.
Increasing options activity is also being seen in Live Nation (LYV), Altera (ALTR), and Endo Health Solutions (ENDP).
————————————————————————————-
Disclaimers
This article is provided for informational purposes only. No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment advice. The content provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness. optionsXpress makes every effort to provide timely information to its recipients but cannot guarantee specific delivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for all investors. Please read the “”Disclosure Statement for Futures and Options”” prior to investing in futures or options.
For investments using a straddle or strangle options strategy the potential loss is unlimited. Multi-leg option strategies are subject to multiple commissions. Profits may be eroded by the commission expended to open and close the positions and other risks apply.