From Schaeffer's Investment Research:
After hovering around breakeven for the first hour of trading, Tesla Motors Inc (NASDAQ:TSLA) shot higher on rumors out of China that Apple Inc. (NASDAQ:AAPL) -- which is reacting to its own buzz -- intends to invest in the electric vehicle maker. As a result, TSLA options are flying off the shelves, especially on the bullish side, with traders placing last-minute bets.
The equity's 30-day at-the-money implied volatility has edged 2.5% higher to 38.2%, reflecting the growing popularity of near-term contracts. In fact, the 10 most active TSLA options expire at tomorrow's close, and calls are crossing the tape at twice the average intraday pace.
Most active is the weekly 2/27 210-strike call, which bulls are once again buying to open to bet on a move north of $210 by the end of the week....MORE
