Options markets will help investors gauge how Tesla stock might react to earnings.
Options give the holder the suitable to purchase or sell a stock at a set price sooner or later in the longer term. Taking a look at options that expire soon with strike prices near where a stock is trading can tell investors what traders expect for post-earnings volatility.
Currently, options markets imply that Tesla stock will move about 7% up or down following earnings. That’s a giant post-earnings move for many stocks. It’s relatively modest for Tesla.