Tesla Calls Crushed This Week
Buying Tesla calls last week would not have been a smart YOLO options trade.
The Tesla $427.50 calls (expiring Friday) are the closest to the money calls as of this writing. They’re trading at $16.60, down over 68% from their peak just five trading days ago.
Traders looking for larger Tesla price spikes have been disappointed so far as well. The $500 calls expiring Friday are down 94% in the last week, declining from $20.71 last Wednesday to $1.21 today.
Of course, Tesla could spike after its earning call today and allow call holders to redeem themselves. However, even if Tesla goes to $500 by the end of the week, $500 call buyers from last week will likely still find themselves on the losing end due to the massive theta decay they’ve already experienced.