A surge in Tesla Inc. stock has sparked heavy trading in the options market, with bullish calls outpacing bearish put options.
According to data from Cboe Global Markets, more than a million call options had changed hands on Wednesday, compared to about 710,000 puts. Tesla was a favorite among options traders last year and is often one of the most popular bets in the entire market.
On Wednesday, the stock’s expected volatility rose along with its share price, according to Susquehanna Financial Group. This is an unusual dynamic in the options market, but it has become a feature of meme stock mania. For Tesla, the moves are reminiscent of last August, when Tesla shares rebounded and traders positioned themselves for huge moves in the stock up.
Tesla stock rose more than 5% in its last trade to $ 657.04. They’ve outperformed the market lately, down about 7% this year.