Understanding Tesla's Options Frenzy: Key Insights

Recently, major financial institutions have demonstrated a clear bullish stance on Tesla, trading under the ticker TSLA. An analysis of Tesla's options activity revealed a striking 596 unusual trades.

In breaking down this data, we found that 46% of traders held bullish positions, while 34% favored bearish options. Of the recorded trades, there were 89 put options, totaling $6,533,521 in value, contrasted with 507 call options valued at $49,842,431.

Price Expectations for Tesla

Considering both the Volume and Open Interest of the options contracts, it's evident that larger investors, often referred to as "whales," have been focusing on a price range of $300.00 to $600.00 for Tesla stock over the past three months.

Volume and Open Interest Analysis

Examining volume and open interest offers valuable insights into the market's interest and liquidity regarding Tesla's options at specified strike prices.

The data below illustrates the changes in volume and open interest related to both calls and puts, specifically reflecting the whale activities for all Tesla options trading within the $300.00 to $600.00 strike price range over the last month.

Tesla Options Volume and Open Interest Over the Last 30 Days

Largest Options Trades Noted

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
TSLA	CALL	SWEEP	BEARISH	01/10/25	$21.15	$21.1	$21.1	$460.00	$1.7M	3.3K	1.9K
TSLA	PUT	SWEEP	BEARISH	12/27/24	$9.45	$9.25	$9.45	$450.00	$753.9K	7.9K	5.2K
TSLA	CALL	SWEEP	BULLISH	12/27/24	$9.4	$9.25	$9.4	$450.00	$160.2K	22.4K	34.2K
TSLA	PUT	SWEEP	BEARISH	12/27/24	$9.45	$9.3	$9.45	$450.00	$124.6K	7.9K	5.5K
TSLA	PUT	TRADE	BULLISH	01/17/25	$12.55	$12.4	$12.4	$410.00	$124.0K	3.5K	330

Tesla Overview

Tesla operates as a fully integrated manufacturer of battery electric vehicles and autonomous driving systems. The company offers a diverse range of vehicles, including luxury sedans, SUVs, a light truck, and a semi-truck. Tesla is preparing to launch more affordable options, alongside a new sports car and a robotaxi. In 2023, Tesla achieved over 1.8 million global vehicle deliveries. Apart from vehicles, Tesla sells stationary batteries for both residential and commercial energy storage, as well as solar panels and solar roofs for energy generation. The company also boasts an extensive fast-charging network.

Following the detailed analysis of Tesla's options activity, we can shift our focus to the company's current financial position.

Current Tesla Position

• The TSLA stock is currently trading at $449.03, showing a 4.28% increase with a trading volume of 10,310,202 shares.
• Relative Strength Index (RSI) readings indicate that the stock may be considered overbought at this time.
• Tesla's anticipated earnings release is scheduled in the next 29 days.

Analyst Opinions on Tesla

In the past month, five industry analysts offered their insights on Tesla's stock, with an average target price of $383.40.

Notable Options Activity: Tracking Smart Money Movements

Monitoring unusual options activity can help identify potential market shifts. Here are some recent analyst assessments:

An analyst from Morgan Stanley remains bullish, holding an Overweight rating with a price target of $400.

A Cantor Fitzgerald analyst maintains a Neutral rating, predicting a target price of $365.

Stifel's analyst keeps a Buy rating, with a price target of $411.

Mizuho's analyst upgraded their rating to Outperform, increasing the price target to $515.

Conversely, an analyst from UBS persists with a Sell rating, targeting $226.

Engaging in options trading carries heightened risks but can also yield significant rewards. Knowledgeable traders often employ ongoing education, strategic adjustments, various indicators, and remain alert to market fluctuations. To stay updated on Tesla's latest options trading, seeking services offering real-time alerts can be beneficial.

Tesla, Options, Trading