Tesla Attracts $190 Million in Short Call Positions Even as Stock Soars After Deliveries Beat
$Tesla(TSLA.US$attracted almost $190 million in short call positions at a time when the stock is soaring to its highest level since January.
Shares of the electric vehicle maker jumped 9% to $228.83 Tuesday after Tesla reported second quarter deliveries that beat analysts' estimates. Wedbush analyst Daniel Ives said the results represented "a huge comeback performance" for the company that's widely expected to miss expectations, Wall Street Journal reported.
At 2:16 p.m. in New York Tuesday, two short call positions were posted, the biggest of them involved the contract that gives the holder the right to sell 3.2 million Tesla shares at $190 each by Aug. 16. The seller stands to collect $124.96 million for writing those 32,000 call options. Each call option covers 100 shares.
The other block trade posted at that exact time gives the holder the right to sell 3.2 million Tesla shares at $225 also by Aug. 16. The seller stands to collect a premium of $64.8 million for that trade.
Financial giants are taking short positions on Tesla just as the electric vehicle maker is trying to catch up to its Magnificent Seven peers. Even after Tuesday's rally, the stock is still down almost 8% this year. By comparison, $NVIDIA(NVDA.US$skyrocketed 148%, while $Meta Platforms(META.US$ soared 44% over the same period. $Alphabet-A(GOOGL.US$ surged 32%, $Amazon(AMZN.US$ jumped 31.7%, $Microsoft(MSFT.US$ advanced 22% and $Apple(AAPL.US$rallied 14%.
Fund inflows into Tesla outpaced outflows by more than $214 million, setting the EV maker on pace for its first monthly net inflow since December, when it attracted almost $144 million on a net basis, capital trend data compiled by moomoo showed.
Still, it's unclear how long the Tesla rally will last. Twelve of 15 technical indicators tracked by moomoo are flagging early warning signals that the stock could be overbought, and the trend may turn bearish. Only the moving average looks positive, while the remaining two, the Bollinger band, and the moving average converge-divergence indicators are neutral.
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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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70720565 : Well written information. Thank you. Love Tesla
Casey Russell : Ummm. Am I crazy? Writing calls at $195 would be a massive loss, not a gain. Unless they were covered.
70557046 : Screw the Bears and let’s torch the shorts!!!
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RJBoy : They love to hate on Tesla
NVDAvsTSLA Casey Russell: Big brother, they only started losing money after the stock price rose to 190+39 = 229. If not, it is estimated that proper equity collection will be collected before the agency will empty out before selling. The other company only started losing money after the stock price rose by 225+20 = 245. But institutions should have other hedging strategies