Tesla Attracts Bearish Bets From Options Traders Following Price Cuts In China

Tesla, Inc. (NASDAQ: TSLA) shares traded lower on Wednesday after the company announced fresh incentives on its inventory of Model S and X vehicles in China.

On CNBC’s "Options Action,"  Kevin Kelly of Kelly Intelligence said there were 1.06x the amount of puts traded versus calls on Tesla.

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There were buyers of 118,385 of the August 225-puts at an average price of $3.00 per contract, Kelly mentioned.

Traders see Tesla’s stock falling further through Friday’s close.

Earlier this week, Tesla also cut prices on the Model Y Long Range and Performance versions within the geography by as much as 14,000 yuan or $1,900.

TSLA Price Action: Tesla shares fell 3.2% to close at $225.60 on Wednesday; the stock was adding 0.68% premarket Thursday.  

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Photo courtesy of Tesla.