The electric vehicle giant will report earnings for the second quarter after today’s close of trading
All eyes will be on that Technology sector this week as several big names join the profit backer. One of the first reports Tesla Inc (NASDAQ: TSLA), which is expected to publish its second quarter results today after close of trading. Electric vehicle concern recently surged 2.5% to $ 659.56 as excitement for the event grows. Below we will dive deeper into the stock’s performance in recent charts and examine some of its post-earnings activity.
Tesla stock is down a huge step from its all-time high of $ 900.40 on Jan. 25. Stocks have retreated into the $ 540 area twice since that high and traded mostly sideways for the last month. And while the stock is 134.1% ahead of the previous year, the 120-day moving average has been putting pressure on stocks since early May.
Options traders are pricing in a 9.3% after-profit for TSLA this time around, which is slightly larger than the 7.2% move in the stock according to the last eight reports, regardless of direction. The security posted positive returns the next day halfway through these reports, including a 17.7% gain in October 2019.
The brokerage group is mostly pessimistic about Tesla stock, suggesting that there is room for upgrades should the company deliver positive results. Of the 22 analysts in question, 12 have a tepid “hold” or lower rating, while 10 say “buy” or better. The 12-month consensus target of $ 686.94 is a small premium of 3.6% from current levels.
Now seems like a great opportunity to speculate on TSLA’s next move with options. The Schaeffer’s Volatility Index (SVI) of 50% of the stock is in the 6th percentile of last year’s values, which suggests that option players are currently pricing in low volatility expectations. Besides, the share is Schaeffer’s volatility scorecard (SVS) ranks 97 out of 100, indicating it has exceeded options traders’ volatility expectations over the past year – a boon for buyers.