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Benzinga
Tesla options traders are dumping massive amounts of calls
Tesla Inc (NASDAQ: TSLA) gained 2.8% more on Wednesday and is now up 1560% in the past 18 months. Although Tesla Bulls are betting the stock’s mad run will continue after a Georgia Democratic Senate sweep, some Tesla options traders are dumping. On Wednesday morning, Benzinga Pro subscribers received dozens of alerts related to unusually large Tesla option trades for the second round of the Georgia election. Here are the four most important: * At 9:30 a.m. ET, a trader sold 310 Tesla call options with a strike price of $ 260 expiring on September 17. The contracts were sold for a bid price of $ 500 and represented a bearish bet of $ 15.5 million. * At 11:31 am ET, a trader sold 921 Tesla call options with a strike price of $ 1,400 expiring in January 2022. The contracts were sold near the bid price at $ 100 and represented a bearish bet of 9 , 21 million USD. * At 11:33 a.m. ET, a trader sold 798 Tesla call options with a strike price of $ 850 expiring on June 18. The contracts were sold for a bid price of $ 117.46 and represented a bearish bet of $ 9.37 million. * Less than a minute later, a trader sold 798 Tesla call options with a strike price of $ 700 expiring on March 19. The contracts were sold for a bid price of $ 130.38 and represented a bearish bet of $ 10.4 million. Why it matters: Even traders who stick exclusively to stocks often closely monitor options market activity for exceptionally large trades. Given the relative complexity of the options market, large options traders are generally considered to be more sophisticated than the average stock trader. Many of these great options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock Unfortunately, stock traders often use the options market to hedge against their positions. in equities options trading is a stand-alone position or a hedge. In this case, given the relatively large size of the largest options trades on Tesla, it is certainly possible that they could be an institutional hedge on a large position in Tesla stock. Tesla Investors Cashing In: The large ones Wednesday’s option trades come after Tesla reported a record 180,570 fourth-quarter vehicle deliveries, up 29.6% from the third quarter. That number has exceeded analysts’ estimates of 174,000 vehicles. For all of 2020, Tesla delivered 499,550 vehicles. Tesla Bulls point out that growth of any kind is impressive given the tough 2020 environment, while Bears point out that Tesla’s 800% market cap increase is not exactly on line with the 35.9% increase in deliveries. “would comfortably exceed” the 500,000 vehicle deliveries in 2020. CEO Elon Musk also said Tesla will have one million robot taxis in operation by 2020. Tesla investors are hoping Democrats who control the White House and Congress will provide a significant positive wind for clean energy stocks. . Wedbush analyst Daniel Ives said on Wednesday that a sweep in Georgia would be particularly bullish for electric vehicle stocks such as Tesla, General Motors Company (NYSE: GM) and Fisker Inc (NYSE: FSR). TSLA chart by TradingView new TradingView.widget ({“width”: 680, “height”: 423, “symbol”: “NASDAQ: TSLA”, “interval”: “D”, “timezone”: “Etc / UTC”, “theme”: “light”, “style”: “1”, “locale”: “fr”, “toolbar_bg”: “f1f3f6”, “enable_publishing”: false, “allow_symbol_change”: true, “container_id”: “tradingview_12fc0 “}); Benzinga take: The four biggest options trades on Wednesday morning were all long sells, and they totaled more than $ 44 million in bearish options trading volume on Tesla. Tesla Bulls cannot be upset that options traders are cashing in what could be massive trading gains on these calls after Tesla’s historic run. Learn more about Benzinga * Click here for trades Benzinga options For the stock market * 10 best performing S&P 500 stocks of 2020 (C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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