Options markets can help investors estimate how Tesla's shares could respond to earnings.
The possibilities give the holder the right to buy or sell shares at a fixed price at a certain point in the future. Looking at the possibilities that will soon expire, with the prices of strikes near the place where stocks are traded, investors can tell what traders expect for volatility after earnings.
Currently, options are indicating that Tesla's shares are about 7% up or down after earnings. This is a great movement after earnings for most shares. It is relatively modest for Tesla.
