$Tesla (TSLA.US)$ I own a lot of TSLA and follow the stock q...
$Tesla(TSLA.US$ I own a lot of TSLA and follow the stock quite closely. We definitely saw a gamma squeeze back when it was getting added to S&P. This time around, I don't believe it was that. Options IVR was extremely low for the first time in recent memory, heading into the recent earnings report. It was single digits where previously it was in high 40s, 50s and higher. "Irrational exuberance" for buying calls was not in call pricing, IV. The skew in TSLA is almost always to the call side because the world is long, especially when the Michael Burry's of the world throw in the towel. If the recent move from 900 to almost 1100 had been a gamma squeeze, the IV of the call options would have been a lot higher because the market maker is in touch with demand and how to hedge the risk of selling calls to insatiable bulls. I think the Hertz news puts a floor in TSLA stock price. It's like a giant government contract for Boeing--guaranteed cash flow--plus it amplifies the reach of the brand and makes every rental a test drive for a future purchase. Sure the competition is catching up, but no other EV car company has planned out the necessary battery and charging infrastructure, along with the global factory production. At some point this stock will take a drop, but I don't see it happening for quite awhile. My prediction is a share price between 900 and 1250 over the next few months, more based on the macro environment than Tesla's "fundamentals".
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TeslaBull999 : Unusual option activity shows huge short positions?