Peter Garnry, head of equity strategy at Saxo Bank, is looking at the US electric car manufacturer Tesla Motors, owned by Elon Musk, after shares rose from $140 in February to more than $240 currently.

Tesla's Q1 earnings will be published on Wednesday and Garnry says expectations are significant given the high share price.

Garnry is looking at May 20 put options with $240 strike price. There is demand for Tesla’s new Model 3 electric car, but Garnry is cautious over potential disappointments on deliveries of the new Model X P90D and he thinks Tesla shares could move 5-10% to the downside.