Options markets can help investors gauge how Tesla stock might react to earnings.
Options give the holder the right to buy or sell a stock at a fixed price at some point in the future. Looking at options that expire soon with strike prices close to 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 big post-earnings move for most stocks. It’s relatively modest for Tesla.
Source: finance.yahoo.com