Short-term bet sees floor in Tesla

Chris McKhann (
December 27, 2013

A large trader is looking for Tesla Motors to hold recent gains.

optionMONSTER's systems detected the purchase of 4,964 Weekly 147 puts that expire tomorrow for the ask price of $0.09 and the sale of the same number of Weekly 149 puts for the bid of $0.14. Volume was well above the previous open interest of fewer than 1,000 contracts at each strike, so this is a new position.

The credit spread takes in just $0.05, which would be the profit if TSLA remains above $149 through the end of tomorrow. This is truly what is known as a " nickel strategy ," as that is what would be earned, while the trader risks losing $1.95 if the stock is below $147. (See our Education section)

TSLA finished the day at $155.50, up 2.7 percent on the day. The electric-car maker was as low as $142.60 on Monday.

More than 130,000 TSLA options changed hands in all, 3 times its daily average over the last month.

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