Traders in Tesla Inc.
TSLA,
stock options are prepared for less volatility than usual following the release of the electric vehicle maker’s third-quarter results after Wednesday’s closing bell. An options strategy known as a straddle, which is a bet on volatility that involves buying both bearish (puts) and bullish (calls) option with strike prices at current levels, is priced for the stock to move $13.66 (5.5% at current prices) in either direction on Thursday, according to data provided by Matt Amberson, principal at Option Research & Technology Services. That’s below the average price move after the past 12 quarterly reports of $16.03. With the stock recently down 3.4% at $246.15, that means a buyer of the straddle would start making money if the stock falls below $232.49 or rises above $259.81. The stock has moved more than 5.5% after the past five quarterly reports; the average move over the period has been 9.4%.
