Where Is Tesla Motors Stock Headed Post SolarCity Merger?

Since going public more than 6 years ago, Tesla Motors (NASDAQ:TSLA) has been a battleground stock between the bulls and bears. The $29B electric car maker has soared an astounding 1057% since the IPO, which can largely be attributed to Elon Musk’s leadership and the potential of the electric car market and its Gigafactory. His personality and bold statements always make Tesla Motors stock a must-watch.

However, short sellers have knocked the company on delivering what they promise in terms of units and of course valuation (not expected to become profitable until 2018).

Investors must now weigh the pros and cons of the controversial $2B deal for SolarCity Corp. (NASDAQ:SCTY) On November 23rd, Morgan Stanley said in a note they see “zero value” created for Tesla shareholders based on SolarCity’s latest financial condition and … Read More »

Stock Watchlist Update
Buy, Sell, Or Hold Tesla Motors?

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 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Citigroup (C) and put buying in Tesla Motors (TSLA).

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Smart Money Report

MPEL- Another 1,200 Jan. 2016 $39.66 calls were purchased for $6.29-$6.70 each, against open interest of 9,173 contracts. Nearly 9,000 were bought yesterday. This investor is positioning for a sizable move higher over the next 18-19 months in shares of Melco Crown Entertainment. The stock trades at a P/E ratio of 15.76x (2015 estimates), PEG ratio of 0.75x (2015 estimates), 25.5% revenue growth, and has an average analyst price target of $50. On 5/9, J.P. Morgan Chase maintained an overweight rating with a $41 price target.
MTW- The Sep. $27/$30 call spread was put on 5,020 times for a $1.60 debit. Volume was above the open interest in both options. Call activity is nearly 8x the average daily volume.
SNDK- 6,434 July 19 $100 calls were bought for $3.65-$3.75 each, against open interest of 5,661 contracts. There has been sizable … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in SanDisk (SNDK) and Tesla Motors (TSLA).

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Smart Money Report

TSLA- Tesla Motors is set to announce Q1 earnings after the bell tonight. Analysts are looking for $0.12 in EPS and revenue of $700 million. Option traders are pricing in a $20.60 move, or 10.25%, in either direction through Friday’s close. The call to put ratio in (TSLA) options is currently 1.02, led by a seller of 1,150 June 21 $200 puts for $16.10 each (this trade was tied to a 50k share sale at $202.06). The stock has moved higher after earnings on three out of the last four reports.
AMAT- Another 13k Jan. 2015 $22 calls were purchased for $0.78 each, against open interest of 97,181 contracts. Earnings are due out on 5/15. On 4/15, open interest was 56,091 in these calls.
FB- 6,200 June 21 $55 puts were bought for $1.93 each, against open interest of 17,182 … Read More »

Free Trade Of The Day Featuring Tesla Motors (TSLA)

Tesla Motors (TSLA) Options Trade Idea

Buy the (TSLA) Apr. 4 weekly $242.50/$265 call spread for a $8.00 debit or better

(Buy the Apr. 4 weekly $242.50 call and sell the Apr. 4 weekly $265 call, all in one trade)

Stop loss- None

1st upside target- $15.00

2nd upside target- $20.00

Notes: Starbucks (SBUX) shares rose another 0.80% today, following the breakout from earlier this week. Yesterday’s Free Trade of the Day featuring Starbucks (SBUX).

Free Trial: If you would like to know more about premium content or you would like a free trial of our service, email me at Mitchell@OptionsRiskManagement.com .

Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like … Read More »

Smart Money Report

GOGO- Gogo is set to announce Q4 earnings before the bell tomorrow morning. Analysts are looking for -$0.27 in EPS and revenue of $85.4 million. The options market is implying a $3.45 move, or 14.27%, in either direction through Mar. options expiration. Call to put ratio in (GOGO) options is currently 4.17, led by buying in the Mar. and Apr. calls. The stock has moved higher on the previous earnings reports.
PLUG- Another notable name to release earnings in the morning is Plug Power. Analysts are looking for -$0.08 in EPS and revenue of $7.5 million. Option traders are pricing in a $2.05 move, or 30.37%, in either direction through Mar. options expiration. The call to put ratio in (PLUG) options is 1.33, led by a seller of 1,500 Mar. 2014 $8 puts for $2.35 each. The stock has … Read More »

Smart Money Report

CSC- Sizable buying in the Mar. $65 and $70 calls this morning. Volume was above the open interest in both options. The IT company typically trades 476 calls per day vs. the 4,000+ traded today.
DAL- The Sep. $30/$36/$43 bull call spread risk reversal was put on 10k times for a $0.55 debit. Volume was above the open interest in all three options. They bought the Sep $36 calls and sold the Sep. $30 puts and Sep. $43 calls to reduce the cost. The maximum risk is $0.55 until/if the stock closes under $30 on Sep. options expiration. The maximum gain is achieved on a close at or above $43 on expiration.
SOL- Sizable buying in the Mar. $4.50 and $5 calls this morning. Volume was above the open interest in both options. Earnings are due out on 3/13. There … Read More »

Smart Money Report

ROC- Rockwood Holdings is set to announce Q4 earnings on Monday, March 3rd. Analysts are looking for $0.34 in EPS and revenue of $342 million. Option traders are pricing in a $6.75 move, or 8.48%, in either direction through March options expiration. Call activity was over 18x the average daily volume, led by a rollout from 17k May $70 calls (credit) into 25k Aug. $90 calls (debit). Volume was above the open interest in the Aug. $90 calls.
HPQ- 4k May $34 calls were bought for $0.24-$0.27 each, against open interest of 1,486 contracts.
SPY- 20,800 Apr. $190 calls were bought for $1.28 each, against open interest of 150,501 contracts.
TEX- 2,500 July $44 puts were sold for $3.70 each, against open interest of 56 contracts.
TSLA- Tesla Motors shares are moving off of the all-time highs hit on Wednesday, dropping 2.21% … Read More »

Smart Money Report

SCTY- SolarCity will report Q4 earnings after the bell tonight (delayed until next week). Analysts are looking for -$0.55 in EPS and revenue of $43.1 million. The options market is implying a $9.50 move, or 12.09%, in either direction through Friday’s close. Call to put ratio in (SCTY) options is currently 1.92, led by activity in the Feb. 28 weekly $90 calls.
TMUS- T-Mobile US is set to announce Q4 earnings before the bell tomorrow morning. Analysts are looking for -$0.13 in EPS and revenue of $7.0 billion. Option traders are pricing in a $2.38 move, or 7.46%, in either direction through Friday’s close. The call to put ratio in (TMUS) options is 2.31, led by a buyer of 2k Mar. 22 $34 calls for $0.78 each.
HAS- 5,000 Apr. $60 calls were purchased for $0.40-$0.50 each, against open interest of … Read More »

Smart Money Report

TSLA- Tesla Motors will report Q4 earnings after the bell tonight. Analysts are looking for $0.19 in EPS and revenue of $663 million. The options market is implying a $23.55 move, or 12.08%, in either direction through Friday’s close. Call to put ratio in (TSLA) options is currently 1.05. The stock has opened lower 4 out of the last 7 days following earnings.
WMT- Wal-Mart Stores is set to announce Q4 earnings before the bell tomorrow morning. Analysts are looking for $1.60 in EPS and revenue of $130 billion. Option traders are pricing in a $1.54 move, or 2.06%, in either direction through Friday’s close. The put to call ratio in (WMT) options is 1.20.
ASH- A rollout from 5k Feb. $95 calls (credit) into 10k Mar. $100 calls (debit). Volume was above the open interest in the Mar. $100 calls.
GDX- A rollout … Read More »

Smart Money Report

BHI- A rollout from 16,536 Mar. $57.50 calls (credit) into 16,536 Mar. $62.50 calls (debit). Volume was above the open interest in the Mar. $62.50 calls.
FRX- 5,000 Jan. 2016 $90 calls were purchased for $5.10 each, against open interest of 11 contracts.
GLD- 19k Dec. $130 calls were bought for $6.75 each, against open interest of 46,663 contracts.
UPL- A rollout from 4,450 Feb. $24 puts (credit) into 4,450 Mar. $24 puts (debit). Volume was above the open interest in the Mar. $24 puts. Earnings are due out 2/20.
TSLA- Tesla Motors shares are up fractionally today, on pace for a close above $200 for the 1st time ever. The call to put ratio in (TSLA) is currently 1.21, led by a buyer of 1,500 Mar. 2014 $190 puts for $12.40 each.

2014 LIMITED TIME OFFER– Save over 33% off … Read More »

Smart Money Report

ANR- Alpha Natural Resources will report Q4 earnings before the bell tomorrow morning. Analysts are looking for -$0.62 in EPS and revenue of $1.2 billion. The options market is implying a $0.54 move, or 10.29%, in either direction through Friday’s close. Call to put ratio in (ANR) options is currently 1.65, led by a buyer of 544 Feb. 14 weekly $5.50 calls for $0.13 each.
DE- Another major earnings report due out in the morning will come from Deere. Analysts are looking for $1.52 in EPS and revenue of $6.6 billion. Option traders are pricing in a $3.00 move, or $3.41, in either direction through Friday’s close. The call to put ratio in (DE) options is 1.73, led by a buyer of 1,271 Feb. 14 weekly $86/$88 bull risk reversals for a $0.20 debit.
EEM- A rollout from 124,000 Feb. … Read More »

 Smart Money Report

TSLA- Tesla Motors is set to announce Q3 earnings after the bell tonight. Analysts are looking for $0.10 in EPS and revenue of $535 million. The options market is implying a $21.00 move, or 12.10%, in either direction through Friday’s close. Call to put ratio in (TSLA) options is currently 1.31.
Z- Zillow will also be releasing Q3 results tonight after the bell. Analysts are looking -$0.08 in EPS and revenue of $51.4 million. Options traders are pricing in a $8.30 move, or 10.20%, in either direction through Friday’s close. The put to call ratio in (Z) options is 1.29.
BBRY- 7k Feb. 2014. $6 calls were purchased for $1.32 each, against open interest of 11 contracts.
IGT- 6,000 Nov. $19 puts were sold for $0.90 each, against open interest of 2,259 contracts. Earnings are due out on 11/07.
AAPL- Apple shares … Read More »