- Tesla options are traded more than any other stock, according to CBOE data cited by the Wall Street Journal.
- Nearly 3 million contracts for Tesla options are traded daily, up from 1.5 million a year ago, accounting for roughly 7% of all options trading.
- The most popular options trade is for Tesla stock to surge 394% within 12 months.
Wall Street loves options trades on Tesla stock, and the most popular bet would see shares surge nearly 400% within the next year.
Tesla options are traded more than any other company's stock, according to CBOE data cited by the Wall Street Journal. On average, nearly 3 million contracts for Tesla options are traded daily, up from 1.5 million a year ago, accounting for roughly 7% of all options trading.
And on January 6, options trades on Tesla touched over 5.2 million, making up 10% total volume on the busiest day for options contracts.
The most popular options bet for Tesla would see the stock double from its all-time high of $409.97, which represents roughly a 394% increase from the current trading price.
Those options traders are even more bullish than CEO Elon Musk, who told analysts on an earnings call Wednesday that "Tesla will be the most valuable company on earth."
For Tesla to reach that milestone, it would have to surpass Apple's current market valuation of $2.3 trillion, which would equate to Tesla stock surging 323% to $698.
Investors are continuing to show signs of optimism toward Tesla, despite a brutal 2022 that saw the stock plummet 64% amid concerns about Musk's preoccupation running Twitter, Federal Reserve rate hikes and a slowing economy.
Investors have parted with over $700 billion on options trades connected to Tesla from January 2022, surpassing any other stock on Wall Street or exchange-traded fund.
And Tesla stock has rallied more than 30% so far this month, with a strong fourth-quarter earnings report this week adding to the bullishness.