Tesla Flying 7% Thursday, $240 Calls Jump With Them
Tesla shares flew after rate cut news breathed life into the somewhat struggling Magnificient Seven stocks. On the news, Tesla options contracts are roaring.
Tesla shares, alongside $Alphabet-A (GOOGL.US)$, $Alphabet-C (GOOG.US)$, and even $NVIDIA (NVDA.US)$ pulled back in the third quarter after a blistering year of stock price gains. Since mid-July, Tesla has fallen about 7% and fell 25% in July alone. Even near-perfect estimate matching or beating earnings were not enough to keep Mag 7 stocks on their meteoric climbs. Even with the July and August pullback, Tesla is up 15% annually.
Within options contracts on the underlying stock, one contract stood out: $240 calls expiring Friday, which give the holder the ability to buy Tesla at 240 for a going 4.60/share for 100 shares. Despite a 700% price run up Thursday, the trading value of these contracts has dropped nearly 90%, following the drop in Tesla price in July.
According to Benzinga, the EV industry has been caught in a rut since 2022 as demand faltered amid customers reining in spending amid high interest rates and hot inflation. Tesla CEO Elon Musk has complained higher rates are hurting his firm's car sales and raising the costs of financing new orders.
The stock may also get a prop from evidence of continued strength for Tesla in China, which is one of its key markets. Weekly vehicle insurance data from China showed 15,600 insured registrations for Tesla vehicles in the week of Sept 9-15, CnEVPost reported, citing data from $Li Auto (LI.US)$.
According to moomoo transaction data, the stock saw a net inflow of over $862M in new cash, with nearly half from the smallest batch size of transactions.
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Moomoo News and Community Manager
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