Tesla Options Show Skepticism of Buyout - Reuters Mention

Posted by ORATS Team on 8/22/18 8:35 PM

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ORATS data and comments appeared in a Reuters story on Tesla yesterday.

Using our data API, ORATS presented the following graph to show, “Initially options traders reacted with a little bit of belief, now there is disbelief,” said Matt Amberson, founder at ORATS.

If options traders thought TSLA would get taken private the 1 year (and 2 year) IV would react lower. This initially happened but is now back to 8/6 levels.

Notice how the GREEN line dipped after the comments made after the black vertical line but then has come back to pre-comment levels.

The GREEN line is the constant maturity, 1-year implied volatility with the effect of earnings taken out.

ORATS extracts the earnings effect from implied volatility readings to provide a better metric for comparison over time.





Written by ORATS Team

ORATS is a premier options analytics vendor committed to uncovering untapped alpha-generating solutions. ORATS utilizes an advanced, proprietary volatility analysis to produce implied, forecast, and historical volatilities that have been proven to be more accurate market summarizations than those obtained from most commonly available sources.

Topics: Markets

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