Tesla Sees Financial Giant Take $25M Bullish Position in Stock Options
$Tesla (TSLA.US)$ saw a combined $24.9 million bullish position in the stock's options just a week before the electric vehicle maker is expected to report its second quarter deliveries that analysts predict could be lower than last year.
At exactly 10:40:58 a.m. in New York Monday, four block trades in Tesla options expiring in 88 days were posted. The biggest of them is for put options that give the holder the right to sell 400,000 shares of the EV maker at $220 each. The seller stands to collect a $16.2 million premium for writing the 4,000 contracts in that block trade.
Apart from the three bullish block trades, there was one bearish position in which the seller wrote 4,000 call options giving the holder the right to buy a combined 400,000 Tesla shares at $180, also by Sept. 20, the same expiration date as the other three trades. The seller stands to collect a premium of $8.44 million for those options.
Two other block trades were posted at $11:20:55 a.m., which are evenly split between bullish and bearish positions, data compiled by moomoo showed.
Sentiment has been mixed for the stock that has plunged this year at a time when the $S&P 500 Index (.SPX.US)$ has rallied 15%. The selloff spurred debate whether Tesla, which was part of the Magnificent Seven rally last year, still deserves to stay in that elite group that includes AI-favorite $NVIDIA (NVDA.US)$, $Microsoft (MSFT.US)$, $Apple (AAPL.US)$, $Amazon (AMZN.US)$, $Alphabet-A (GOOGL.US)$ and $Meta Platforms (META.US)$.
While Tesla saw an inflow of $2.276 billion as of 12:10, the outflow outnumbered that by less than $157,000. Technical indicators are also almost even, with seven of them showing early warning signal that the stock could be overbought, and the trend could lean bearish. Another seven were neutral and only the moving average was flashing a bullish sign.
On average, analysts expect Tesla to report deliveries of less than 450,000 units for the second quarter, about 4% below the number reported in the period last year, Barron's reported, citing analysts' estimates compiled by FactSet. The company typically reports the data on deliveries on the second day of the new quarter.
On average, analysts expect Tesla to report deliveries of less than 450,000 units for the second quarter, about 4% below the number reported in the period last year, Barron's reported, citing analysts' estimates compiled by FactSet. The company typically reports the data on deliveries on the second day of the new quarter.
The stock has fallen about 25% since the start of the year, when analysts were expecting Tesla's deliveries to reach about 2.1 million, and earnings at about $3.80 a share in 2024. Estimates for deliveries have since fallen to about 1.8 million, almost the same as last year, while earnings are now expected to be about $2.40 a share, according to the Barron's report.
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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.
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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Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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White_Shadow : Tesla is in a bear market, doesn't belong in the Magnificent 7 anymore, Elon had too much control and is steering the company in the wrong direction
Censorship here White_Shadow : That’s your opinion.
White_Shadow Censorship here : facts
Space Dust : Elon.. ' forget cars'. "
robots look"
oh, and his own confessions. " without self driving cars, Tesla is screwed"
Censorship here White_Shadow : Facts of your opinion
White_Shadow Censorship here : facts shown by data
White_Shadow Space Dust : totally agree, I like tesla prospects for thr future but until RoBo Taxis or other Robotics disrupt I'll keep my money out of Elon's claws
Censorship here White_Shadow : Show so called data …
Tonyco Censorship here : you read the last paragraph right? there's your data
White_Shadow Tonyco : whatever you say, you guys know everything rt
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