Specifically, TSLA is planning to sell 2.7 million common shares and $450 million in convertible notes. The estimated sum of both these transactions is roughly around $830 million. Additionally, founder Elon Musk said he will purchase $100 M in stock. Of this $100 M, $45 M will be purchased in the offering and the remaining $55 M will be purchased in the form of a direct placement, due to legal restrictions. Musk was also a buyer of the firm’s September offering, where he purchased only $1 M of the $225 M deal, nevertheless still a buyer.

The funds from this transaction are supposedly to repay the US Department of Energy and the timing of the transaction couldn’t be better after this epic run in the stock. TSLA has raged nearly 61% after the most recent quarter. The loan from the government is roughly $465. These funds were used in the development of the Model S roaster.

From the prospective of the options market, TSLA volatility has been on a tear. The current IV percentile is about 92%. Meaning that only 8% of the historic observations are above current levels. The volume weighted price average of the stock is roughly $91.95, therefore maybe look out for a $92.5 strike pin in the stock this Friday. However there is only 1.5k in open interest. The May 2013 100 calls have over 12k in open interest. Interesting either way.

salerno.mark.a@gmail.com

Paper buys 808 ITT Oct 30 Calls for $1.70 (71.6 usual volume) with stock at $30.28
Paper buys 800 SIRI Jun 3.5 Calls $0.14 (2.4 times usual volume) with stock at $3.53
Paper buys 9,975 MNKD Jan 5 Calls for $1.35 (3.9 times usual volume) with stock at $5.06
Paper buys 4,069 WM Oct 42 Calls for $1.30 (2.7 times usual volume) with stock at $41.59
Paper buys 460 PBF Dec 40 Calls for $1.25 (2.4 times usual volume) with stock at $30.93

Paper buys 2,000 DE Jun 85 Puts for $0.68 (4.3 times usual volume) with stock at $90.18
Paper buys 8,719 LYV Jun 13 Puts for $0.425 (41.1 times usual volume) with stock at $13.98
Paper buys 1,369 SNTA Jun 7.5 Puts for $1.30 (2.1 times usual volume) with stock at $8.05
Paper buys 2,000 CTAS Jun 45 Puts for $0.90 (6.6 times usual volume) with stock at $42.50