It May Be Time to Strike on This Popular Stock

Good morning, Power Profit Traders!

Don’t forget — I’m LIVE at 9:30 a.m. ET every morning RIGHT HERE, and today I just came off the daily 8:30 a.m. ET Money Morning LIVE show.

In fact, if you AREN’T hopping in the Money Morning LIVE room before the opening bell to watch me hang with Voz, Mark, Kenny and the gang, you’re not only missing my collection of hats, you’re robbing yourself of actionable trade ideas.

Take a look at these beauts, for instance, that I’ve called out on the pre-market show:

Plus, this morning I even doled out what I call a “triple-layer cake” options trade idea… but you had to be in the room to get the deets!

Moving on, while Bitcoin (BTC) ETFs and earnings have been the theme of the week on Wall Street, one stock in particular emerged as a running theme on my Morning Report Watchlists from the TG Suite app

In fact, it popped up on multiple lists after the close last night, telling us option bets have been extremely active… and now may be the time to strike.

Does TSLA Have Gas in the Tank?

Of course, considering Elon Musk & Co reported quarterly earnings on Oct. 20, it’s not too surprising to find the Tesla (TSLA) options pits were on fire this week.

The electric vehicle maker popped up on our Highest Option Volume list and Unusually High Call Option Volume list from the Morning Report tool, showing a fondness for bullish bets around Tesla earnings.

The stock’s $900-strike call expiring Nov. 26 was at the top of the latter list, actually, with more than 38,000 contracts traded Thursday.

This indicates buyers expect TSLA shares — which settled yesterday at $894 — to top $900 by the close on Nov. 26.

Meanwhile, like I’ve said — I prefer to entertain option trades AFTER the company reports earnings, because it’s like a FIRE SALE.

Ahead of earnings or a known volatility catalyst, implied volatility (IV) creeps higher and higher… and once the numbers come out, those options see a “volatility crush.” IV deflates, and so do option prices.

So after Tesla reported stronger-than-expected earnings this week, the guesswork regarding the stock’s direction was taken out of the equation, and TSLA landed on our Cheap IV list.

This chart shows TSLA shares with an overlay of the 7-149 day IV on at-the-money (ATM) options.

Chart Description automatically generated

In other words, no matter which way you think Tesla shares are headed, now is the time to be an option buyer if you wanna scoop up contracts at a discount.

Now hop in the room and watch me LIVE — you might miss even more trade ideas…

Have a great weekend!

Leave a Comment

View this page online: