Tesla Bulls Bet Big Ahead of Stock Split


A drenching rally in Tesla Inc shares has further exacerbated the burst of option activity tied to stock jumping.
Tesla recently said it would implement a 5-for-1 stock split, making its wildly popular stocks even more accessible to individual investors. Trading on a split-adjusted basis will take effect from Monday.
So far, however, access to Tesla stock has not been a problem. Since August 11, when the company unveiled plans to divest, the shares rose 63%, based on an already impressive boom this year and a market value of over $ 400 billion. Tesla shares are higher than this year and closed at a record $ 2238.75 on Thursday.
Investors have scrutinized tied call options for the continued progress of the shares. The proportion of put options purchased relative to call options on Tesla hit a record low on August 21, according to Garrett DeSimone, head of quantitative research at data provider OptionMetrics. Mr. Dissimon analyzed Tesla options that are out of current stock levels or out of the money.
Some of the most actively traded option contracts in recent times have seen rapid calls soaring to $ 2400 or $ 2500, trade alert data show.
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