A lurch higher in Tesla Inc. shares has triggered heavy trading in the options market, with bullish calls outpacing bearish put options.
More than a million call options had changed hands on Wednesday, compared to roughly 710,000 puts, according to Cboe Global Markets data. Tesla has been a favorite among options traders over the past year, and is often one of the most popular bets in the entire market.
On Wednesday, expected volatility in the stock jumped along with the share price, according to Susquehanna Financial Group. That's an unusual dynamic in the options market, but one that has become afeature of the meme stock mania. For Tesla, the moves are reminiscent of last August, when Tesla's shares were rallying and traders werepositioning for giant moves in the stock higher.
Tesla shares jumped more than 5% in recent trading to $657.04. They have underperformed the market lately and are down about 7% this year.