Tesla has been a top trade of the week and shows no let up based on action in weeklys set to expire next Friday. Tesla is trading around $90. Put and call buyers are emerging. On the call side traders are in the 100 strike with the implied volatility remaining high at 120. On the put side, the 90 strike is attracting buyers. The bid ask spread is wide so far going into next week’s options expiration, that will likely change once we get over the weekend hump. I’m also tracking the traditional options in Tesla. The vol is higher in the traditionals than in the weeklys at 133. The traditional straddle that expires tomorrow for the 90 strike is pricing in at $7, a sign the Tesla ride is not over yet!
Turning now to another hot play this week. Google. It crossed $900 dollars to an all-time high. Multiple strikes are active especially in the call lines of 915 and 920. Puts are gaining momentum at 880 and 890. The vol is low there at 23. Netflix is another mover,next week’s 240 and 250 calls are already busy. The volatility is 46 the 225 puts are slightly active as well. There are more calls than puts trading. Traders are keeping a close watch on gold futures which broke through 1,400 yesterday. 50,000 options traded out of the gate on gold tracker GLD with 133 and 132 puts seeing some buyers. Dell also perked up this morning with 13 strike put purchasers. In RUT 930 and 940 puts are active And, in SPX there’s downside put play at the 1650 strike. That’s it for now. If you have questions about options trading tweet us or email from this site. We will get you an answer. And, if it airs on the show–you get a gift!