: Tesla stock options priced for smaller than usual move after earnings

Traders in Tesla Inc. TSLA stock options are prepared for less volatility than usual following the release of the electric vehicle maker’s third-quarter results after Wednesday’s closing bell. An options strategy known as a straddle, which is a bet on volatility that involves buying both bearish (puts) and bullish (calls) option with strike prices at current levels, is priced for the stock to move $13.66 (5.5% at current prices) in either direction on Thursday, according to data provided by Matt Amberson, principal at Option Research & Technology Services. That’s below the average price move after the past 12 quarterly reports of $16.03. With the stock recently down 3.4% at $246.15, that means a buyer of the straddle would start making money if the stock falls below $232.49 or rises above $259.81. The stock has moved more than 5.5% after the past five quarterly reports; the average move over the period has been 9.4%.

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