Earnings Week Heats Up Options Market

Pre-earnings volatility is driving unusual options activity across automotive and chip names this week.

TSLA reports Q3 results on 21 October. The stock has fallen 21% year-to-date but a leading indicator tracked by ORTEX points to a strong print. German car registrations data, which leads Tesla revenue by 43 days with a strong fit, is running 269% ahead of the same quarter last year. Options traders are watching closely ahead of Tuesday's release.

GM reports one day earlier, on 20 October. The same German car dataset leads GM revenue by 15 days and is running 133% above year-ago levels. With a 24% analyst return potential and options volume picking up, the call side is attracting attention.

Chip stocks are generating their own signals. INTC has surged 143% year-to-date after analysts turned bullish. Its RSI sits at 31, deep in oversold territory, suggesting the rally has stalled and options buyers are reassessing direction. NVDA carries a 53% analyst return potential but an RSI of just 37. Both names saw the S&P 500 and Nasdaq close lower last week as the chip rebound ran into selling pressure.

In healthcare, Centene topped ORTEX's options sentiment ranking for the week. It has climbed 68% year-to-date and an earnings call is due shortly.

Biotech names IBRX and SLS also rank highly on options sentiment. Both carry elevated short interest and days-to-cover above 14, a mix that often attracts speculative call buying.

The broader backdrop supports caution. European battery-electric car registrations hit a September record of 32,458 units, up from 23,175 a year earlier, according to ORTEX alt data. That read benefits Tesla bulls heading into earnings, though the stock's RSI at 42 shows the market is not yet convinced.