Tesla has outperformed over the past 10 years in June
The S&P 500 (SPX) made history last month after seeing double-digit gains through May for the second time in over two decades. However, June tends to be a bearish month for the index. Because of this, we’re focusing on some of the best-performing stocks we will own in June. Electric vehicle giant Tesla Inc (NASDAQ: TSLA) stands out as one of them. Below, we’ll take a closer look at how TSLA has been performing lately and why now might be a good time to buy options.
According to Schaeffer’s senior quantitative analyst Rocky White, TSLA rose an average of 10.7% in June over the past 10 years. In addition, security closed the month in the black eight times. In other words, the stock is among the top three stocks to own this month and is the only automobile name to appear in the list above.
On the last review, the security was down 2.7% to $ 606.86. Still, a move of similar magnitude would bring the TSLA just over $ 670 for the first time since early May. And while stocks are down 14% since the start of the year, it appears to have bottomed out at around $ 600, with additional support from the 200-day moving average
Options traders speculate on more upside for the security. On the International Securities Exchange (ISE), the Chicago Board Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), the 10-day call / put volume ratio of TSLA of 1.66 is over 71% of the measured values of the previous year . In other words, calls are answered faster than usual.
Now seems like the best time to buy TSLA options. This is because the security’s Schaeffer’s Volatility Index (SVI) of 47% is in the extremely low first percentile of its annual range. This means that options traders are currently pricing in low volatility expectations.
Plus, while the iron is hot, these premium buyers stand out, considering that TSLA has consistently rewarded option buyers over the past year. This is evident from the Schaeffer’s Volatility Scorecard (SVS) of the security, which is 98 out of a possible 100 points.