https://www.globenewswire.com/news-release/2020/08/31/2086095/0/en/Traders-Downshift-on-TSLA-Heading-Into-Stock-Split-According-to-New-Data-from-iVest.html

EMERYVILLE, Calif., Aug. 31, 2020 (GLOBE NEWSWIRE) — iVest+, a leading innovator in trading platforms for educators and retail investors, today released new data that indicate investor sentiment on Tesla (NASDAQ: TSLA) has shifted ahead of the automotive company’s stock split.

iVest+ examined TSLA options trading behavior across thousands of traders since the start of the third quarter. The results show a clear shift in options strategies by traders between July 1 and the period after the stock split was announced.

“Our data show that while investors were heavily bullish on TSLA all quarter, as the stock jumped several hundred points leading up to the ex-dividend date, we started to see a change,” said Rance Masheck, CEO of iVest+. “A significant percentage of traders either shifted to looking to make money on the downside of the stock moving forward or continued to place bullish bets but using more complicated strategies that limit downside even more than just buying your typical calls and puts.”

  • From July 1 through Aug. 10, 79.2% of options trades in TSLA were bullish and 20.8% were bearish. However, when comparing a basic call purchase versus a basic put purchase, which are the simplest and most common strategies for making money if the stock goes up or down, respectively, 72.1% of the trades were calls leading up to Aug. 10.
  • In the period from Aug. 11 to 21, as the stock jumped up ahead of the ex-dividend date, the ratio plummeted to only 59.8% calls. This is a significant shift in trader mentality about the future of the stock following the split.
  • More complex, multi-leg options strategies, which offer some protection on the downside, tended to remain bullish, slipping only to 74.1% after Aug. 21 from 79.2% prior.

iVest+ gathers trading data via its unique and extensive Trade Journal, which helps traders improve their results by automatically tagging trades by type and then enabling them to add their own custom tags where needed. By pulling the metadata of thousands of users across all brands of the platform, iVest+ can gather detailed insights into what traders are doing as a whole. The data can be tabulated based on date range, symbol, options strategies, and more.

About iVest+

iVest+ has reimagined what trading platforms should look and act like, with DIY investors in mind. Purpose-built by leading educators, for educators, and to empower self-directed traders, iVest+ provides tools that act as an invisible mentor for continuous improvement. iVest+ offers brokerages, trading educators, and independent investors the only stock and options trading platforms that package powerful data and insights into portable technology, with easy-to-use tools and visuals for optimal success. For more information about the company’s white-labeled and retail trading offerings, visit www.ivestplus.com.

CONTACT:
Mike Wall
Tier One Partners
781-568-9124
mwall@tieronepr.com