Tesla Options Traders Bet Stock Hits Record High

Tesla Inc.'s (TSLA) stock has risen 40% since October 8 during a time that both the NASDAQ and the S&P 500 have dropped by about 4%. Some options traders are betting that Tesla's recent rally continues and the stock rises an additional 12% to reach a record high before the end of 2018.Directionally, technical analysis supports a further increase for the stock over the next several weeks. Analysts have dramatically increased their earnings estimates for the company in the fourth quarter after Tesla delivered a better than expected third-quarter profit. The $380 strike price calls for expiration on December 21 have seen their open interest levels increase by almost fivefold on November 12, to approximately 10,500 open contracts. A buyer of the calls would need the stock to increase by 12% to $391 from a stock price of $350.51 on November 9. It is a substantial wager with the open calls worth about $11.4 million. Should the stock rise to that price it would be trading at a new all-time high.The chart suggests Tesla may rise further to its next level of technical resistance around $363, an increase of 4%. However, should the stock rise above that level of resistance at $363, then the shares should have a clear path higher towards $389, the previous high.