Ahead of Tesla's earnings report scheduled for Wednesday, options traders are positioning for a notable price shift, with current at-the-money puts and calls indicating a 5.76% move. This is the largest implied movement since October 2025, and if realized, it would mark the biggest change since last July.
On Tuesday, a bullish trend was observed in options trading, with 244,000 calls purchased compared to 116,000 puts, indicating strong demand for calls, particularly the 380-calls expiring Friday, which saw over $15 million in premium spent. These calls require a 3% increase in Tesla's stock price to be profitable by the end of the week.
Historically, however, Tesla's stock has shown muted reactions on earnings days, with a median move of just 3.5% over the past four quarters. Additionally, traders are also keeping an eye on SpaceX's first earnings report since its IPO, which could add further volatility, as the options market is implying a 12% move for SpaceX.
The interplay between Tesla and SpaceX is significant, especially as SpaceX's valuation has fluctuated dramatically since its IPO, currently standing at just under $1.7 trillion, compared to Tesla's $1.4 trillion. This situation creates uncertainty as investors weigh their options between the two companies