Tesla's $150 Calls Sell Like Hotcakes as Stock Soars After Deliveries Beat
Investors and traders are piling on $Tesla(TSLA.US$call options that give the holder the right to buy the stock at $150 by the end of next week after the electric vehicle maker's second quarter deliveries beat analysts' estimates.
More than 45,000 of such calls traded hands as of 12:22 p.m. in New York Tuesday, almost 10 times its open interest. That makes the $150 calls the most active contract expiring next week. Trading across Tesla options reached 2.97 million so far, the biggest of all stock options.
Shares climbed 9% to $228.80 after the EV maker reported that its second quarter deliveries fell to 443,956 vehicles, from 466,140 a year earlier. Analysts on average expected the figure to slump to 439,302, according to a Bloomberg survey.
The better-than-expected deliveries fueled the rally for the stock that has been lagging behind its Magnificent Seven peers. Even after Tuesday morning's jump, Tesla is still down more than 8% this year. By comparison, $NVIDIA(NVDA.US$ skyrocketed 146%; $Meta Platforms(META.US$ soared 43%; $Alphabet-A(GOOGL.US$ climbed 31%, $Amazon(AMZN.US$ jumped 30%, $Microsoft(MSFT.US$ advanced 21%, while $Apple(AAPL.US$gained 14% in that same period.
As expected, the $130 Tesla call options maturing this Friday attracted the heaviest volume across 19 expiration dates as the share price jumped near that strike price. The surge in demand is likely partly driven by those jumping on the rally, sellers who wrote the call options and are now buying them back and those who are rolling the contracts either to a higher strike price or a later expiration.
As of 12:14 p.m., inflows into Tesla outpaced outflows by $392 million. That sets the stock on course for its first monthly net inflow since December 2023, when traders and investors poured about $144 million into Tesla, on a net basis.
It's unclear how long the party can get going. Twelve of the 15 technical indicators tracked by moomoo are showing early warning signal that the stock could be overbought, and the trend may turn bearish. Two others were neutral and the only one that's positive - the moving average - is showing a potential bullish sign.
Share your thoughts on Tesla below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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OptionsKing : Smart and cute:)
Scapey T Goat :
TAY JOO CHONG : The target is US150, and there will be a pullback later
SUNSHINE16 TAY JOO CHONG: Why?
Chris Gege : is this referring to buy call or sell call?
Chin ten LOI : tq you so much for your wonderful comments today and bigger than from the god give some touch up next time I hope this helps someone who is coming soon tq so much for your wonderful comments today good will