Tesla Inc (NASDAQ:TSLA) stock is 2.7% higher to trade at $378.12 today, a strong start to a week. The shares are set to snap a three-day losing streak today that sent TSLA to its lowest level since September on Friday. Amidst its recent slide, options traders have been circling.
For over a year now, Tesla has landed on Senior Quantitative Analyst Rocky White's list of stocks seeing the most options volume in the past 10 days. In this two-week timeframe, the stock has seen 14.3 million calls and 11.1 million puts traded, with the weekly 3/13 400-strike calls seeing notable activity, while the weekly March 390 calls are also popular.
Tesla stock on Friday tested its 320-day moving average, and has reclaimed this trendline. The shares just wrapped their fifth-straight weekly loss. The skid from TSLA's Dec. 22 record high of $498.83 sent its 14-Day Relative Strength Index (RSI) down to 30, on the cusp of "oversold" territory and a partial explainer for today's rally.
Options are affordably priced, per the EV stock's Schaeffer's Volatility Index (SVI) of 44% that stands in the 7th percentile of annual readings. It's worth noting that Tesla's Schaeffer's Volatility Scorecard (SVS) comes in at 6 out of 100. In other words, the stock has consistently realized lower volatility than its options have priced in over the past 12 months, making it a premium selling candidate.
