Traders are betting on a big swing for Tesla Motors this week, which is set to release its quarterly earnings Wednesday after the bell.
Based on options volume from Tuesday, one trader said that heightened volatility indicates some concern over what Tesla will report.
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"It seems like options traders are a little worried here. It's obviously a very controversial name," Dan Nathan of RiskReversal.com said Tuesday on CNBC's "Fast Money." "There's a lot they could disappoint on."
Tesla's shares have jumped about 20 percent this year. Nathan said as the stock consolidates around the $260 level, the chart could be signaling an approaching downturn.
"This flag is a bit precarious from a purely technical standpoint, especially given that massive run," Nathan said.
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