The Wall Street Journal, By Saumya Vaishampayan | November 4th, 2014 (Read article)

Options traders are playing defense ahead of Tesla Motors Inc.TSLA +2.48% third-quarter earnings.

Tesla is scheduled to report on Wednesday after the bell. The electric-car maker is expected to post an adjusted loss of one cent a share. Adjusted revenue is expected to rise 48% to $889 million

The bearish posture among options traders is showing up in heavy trading volume of put options, which grant the right to sell the underlying shares at a set price, called the strike price, by a certain time. A call option conveys the right to buy the underlying shares.