Implied Volatility Mover
Implied volatility in the options on Tesla (TSLA) is moving higher for a second day. The stock rallied 16.6 percent yesterday after the electric car company updated guidance and is up another 30 cents to $44.23. Now attention turns to a company announcement after the closing bell today. The company’s CEO sent out a tweet to his followers last week saying Tesla is set to announce something “exciting”. It’s not clear what the company will announce, but there’s a lot of trading taking place ahead of the news. 41,000 calls and 7,250 puts in TSLA so far. Meanwhile, 30-day implied was up 18 percent to 53.5 and is up another 6 percent to 57 today.
Volume Signals
Vodafone (VOD) options volume is running 5.5X the (22-day) average, with 92,000 contracts traded and call volume accounting for 89 percent of the volume.
Melco Crown Entertainment (MPEL) options volume is 4.5X, the average daily, with 50,000 contracts traded and call option volume representing 98 percent of the activity.
Humana (HUM) options volume is running 2.5X the average daily, with 48,000 contracts traded and call volume accounting for 62 percent of the activity.
Increasing options activity is also being seen in Tesla Motors (TSLA), United Healthcare (UNH), and Sony (SNE).
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