Buy Tesla call options ahead of two October catalyst events, Goldman analysts say

Goldman Sachs analysts recommended buying Tesla (NASDAQ:TSLA) call options ahead of its third quarter earnings report on Oct. 2 and its Robotaxi event on Oct. 10.

Tesla call options (TSLA) are one of Goldman Sachs’ recommended trades. The EV giant currently accounts for 17% of all S&P 500 (SP500) options volumes, surpassing Nvidia (NVDA), which accounts for 14% of volumes.

The company is hosting a Robotaxi event on Oct. 10, where they are expected to unveil its full self-driving technology and business outlook.

Goldman Sachs automobiles analyst Mark Delaney also estimates its third quarter earnings report to come in line with the consensus at 4% quarter-over-quarter and 6% year-over-year, driven by China’s market strength.

“[Delaney] sees Tesla (TSLA) potentially having a cost advantage at scale vs. other Autonomous Vehicle (AV) competitors given its production volumes in the consumer business, vertical integration, and narrower sensor suite,” wrote John Marshall, head of derivatives research, in a note.

The recommended options trade: Buy TSLA Oct-24 $255 calls, recently offered at $17.79 (7%, stock $254.27).

The stock is currently at $255.71, up 0.57% today (at time of publication), and up 2.90% year-to-date.