Noteworthy Options Activity in Tesla, Inc. (TSLA)
On November 2nd, 2021, in the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we reported on significantly sized options trading volume and activity in Tesla, Inc., which opened that day at $1,159.36.
- There were a total of 2,003 contracts traded on the $975 strike call option, at the ask, dated for September 16th, 2022.
- Additionally, there were another 1,675 contracts traded on the same strike and at the ask, but for June 17th, 2022.
- Altogether, these contracts represented approximately 3,678 shares, and $125,200,000 in premium traded.
Seen above are the noteworthy options orders in Tesla, Inc. from the Unusual Whales Flow.
These orders had come in after Eva Mathews of Reuters reported that: “Musk says Tesla has not signed a contract with Hertz yet, halts stock rally.”
Concerns over Tesla, Inc.’s involvement with Hertz were assuaged by the time of these orders, gleaned from Musk’s tweet on November 1st, 2021.
The charts above represent Tesla, Inc.’s historical price in blue, call volume in green, put volume in red, and open interest in yellow.
As of this writing, TSLA has had 399,427 call contracts traded, down from yesterday’s 1,544,674, or October 25th’s 2,439,483 call contracts traded. TSLA’s average 30-day call and put volumes are now 850,900 and 703,700 respectively.
A Continuation of the Trend in by Floor Traders and Whales
Seen above are the floor trades Tesla, Inc. found with the Unusual Whales Flow tool from October 22nd until October 27th, 2021.
Of note, there were no relevant orders from October 22nd until October 25th, 2021; then, the $19 strike put option contract was purchased on the 25th, but only amounting to $17,000 in premium traded.
Expounding from the 22nd to 27th orders above, these three orders came in together, all floor trades, and all representing what might be considered a bearish sentiment; however, of note, the open interest on all of these contracts was greater than the sizes of these trades, so these are not particularly noteworthy, unusual, or useful in determining whether or not these floor traders were preparing for any inclement price action.
Finally, and perhaps most significantly, there was the above trade, the 140 contracts traded on the $25 strike call option, sold below the bid, on October 27th.
To reiterate just as the previously aforementioned trades conducted in tandem, this single order’s size was less than its open interest at the time, which was approximately 8,000 contracts in circulation; therefore, as they were traded below the bid, it is not clear whether they were sold to open or to close at the time.
Contrarian Unusual Options Activity
On October 25th, 2021, Tesla, Inc. opened at $24.88; indeed, there had been a minor decrease in Tesla, Inc. Group, Inc’s price. However, in spite of the aforementioned bearish betting by whales at the largest premium sizes, there was an unusual option bet that came through the Unusual Whales Alert tool, viewable here.
Seen above is the Unusual Whales unusual options activity alert.
The alert triggered at 12:22PM on October 25th, 2021. The ask of the contracts at the time was $0.35; their maximum cost thus far at the time of this writing has been $10.45, or a 2,885.71% gain.
Priced In? What’s Next for Tesla?
The question must be asked: why would anyone take on this contrarian bet in spite of the options order flow and news that Musk was considering offloading some of his own shares?
Will Tesla, Inc. simply continue to defy all odds, and reach new heights?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Unusual Whales
Unusual Whales uncovers unusual options, stocks, and crypto purchases, to equalize information for the retail investor. Follow at unusualwhales.com
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