Tesla's $190 Call Volume Climbs as Vote on Musk's Pay Package Fuel Volatility
Tesla call options that give the holders the right to buy the stock at $190 by tomorrow are seeing volume more than double Thursday from a day earlier as the shareholder vote on Elon Musk's pay package fueled increasing volatility.
The stock jumped as much as 7.7% to $191.08 in early trading after Tesla chief executive Elon Musk posted on X last night that the shareholder resolution for his $56 billion compensation is poised to pass by a wide margin. By 11:43 a.m. in New York, the gains were pared to 3.4% taking the stock price to $183.38.
The stock jumped as much as 7.7% to $191.08 in early trading after Tesla chief executive Elon Musk posted on X last night that the shareholder resolution for his $56 billion compensation is poised to pass by a wide margin. By 11:43 a.m. in New York, the gains were pared to 3.4% taking the stock price to $183.38.
The pay package was put to a vote after a court in Delaware cancelled it earlier this year. Musk, who currently owns about 13% of Tesla, has said he was "uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control."
Without that pay package, he has said in a post on X that he would "prefer to build products outside of Tesla." The vote is scheduled to be announced at today's shareholder meeting.
Volume on the $190 calls expiring tomorrow reached 129,000, more than five times the open interest. The price of that contract reached as high as $4.45 when the stock was trading above the strike price. By 12:14 p.m. in New York, the price pulled back to $1.52, which can be viewed as a sign that buyers are retreating.
Capital trend data tracked by moomoo showed that retail investors came to Tesla's rescue, keeping the stock in positive territory even amid a $246.2 million net outflow. Small orders had a net inflow of $26.9 million, just a fraction of the $176.4 million net outflow seen in extra-large orders.
Seven of the 15 technical indicators tracked by moomoo are flagging that the stock is overbought and could be turning bearish. Only one, the moving average convergence-divergence (MACD) indicator, is bullish, and the remaining seven 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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雁哥 : Firmly support the merger of Rocket
and Starlink into Tesla
73677342 : How do I invest
Johnnyp : Actually Elon said that he wouldn’t feel comfortable developing advanced AI within Tesla without 25% voting control. You’re implying this about money, this is about power and resisting it being taken from his stewardship.