Unusual Activity in Tesla Stock Out-of-the-Money Put Options Is a Good Income Play

Today a recent report shows a large, unusual volume in out-of-the-money (OTM) Tesla Inc. (TSLA) put options due in 37 days. This highlights that TSLA stock may have reached a bottom. It also provides a good income play for existing shareholders.

The Barchart Unusual Stock Options Activity Report (UOA) on Wednesday, March 27, shows that over 2,000 put option contracts traded at the $155 strike price for expiration on May 3. This is unusual since there were only 126 contracts in outstanding interest (OI) before this activity. In other words, the Vol/OI ratio is over 16 times normal.