Goldman Sachs says October will be a busy news month for Tesla, making the electric car stock a strong candidate for options trading. Tesla is due to report third-quarter delivery figures next week, ahead of a long-awaited self-driving taxi event on October 10. Both could be drivers of stock moves, the report said. “Goldman Sachs automotive analyst Mark Delaney expects the company’s fully autonomous driving (FSD)/Robotaxis technology and business prospects to be an important part of the event. On October 2, the company is also expected to report third-quarter 2024 Delivery and production data, Mark Delaney said estimates are in line with the Visible Alpha consensus of around 460k,” the report said. Goldman Sachs said the robotaxi event could include details on the service’s expected start date, as well as updates on Tesla’s other businesses. In July, Tesla shares fell 8% after Bloomberg News reported that the event was postponed from August to October. To capitalize on robo-taxi activity and delivery updates, Marshall highlighted Tesla’s call options expiring on October 24 with a $255 strike price. TSLA 5D mountain Tesla shares closed on Tuesday less than $1 below Goldman Sachs’ recommended execution price. A call option is a bet that a stock will rise above the strike price before expiration, allowing the option holder to purchase the stock at a discount to the market price. Tesla shares closed at $254.27 per share on Tuesday, so the stock would only need to rise slightly for the option to become “in the money.” To make a profit on an option trade, the discount between the strike price and the market price must be greater than the premium paid to purchase the option. Goldman Sachs said Tesla options currently look cheap relative to history. “TSLA one-month implied volatility is 67, down from levels ahead of the July 2024 earnings release, and we think volatility could rise given the importance of the upcoming event,” the report said. If the stock fails rises above the strike price, options traders risk losing the premium paid on the contract. Tesla shares are up less than 3% so far this year, underperforming the broader market.
