Tesla Short Operation Review
$Tesla(TSLA.US$ has been facing continuous turbulence recently, with its stock price continuing to decline after falling below $200.
Let's take a look at how traders holding short positions in Tesla have been operating during this pullback and how they've been able to spot trend signals.
Firstly, widely noticed by the market was the surge in bearish sentiment on March 1st, just after the market opened, around 9:42 AM ET. A large volume of bearish funds emerged, with trading volume skyrocketing. Nearly 3,000 put option contracts with a strike price of $215 were sold, with each contract priced at approximately $3.9.
Simultaneously, looking at the data for the entire day of March 1st, the open interest (OI) surged significantly by the closing bell, with the proportion of sellers accounting for nearly 74% of the total. It can be inferred that the large sell-off of call options on that day was likely initiated by opening positions (considering Tesla's subsequent stock performance, this transaction is highly probable to be profitable).
Besides the unusual activity observed in the put options expiring on March 28th, further examination of the data reveals active trading in put options expiring on March 22nd, with strike prices of $165 and $170, respectively.
Examining the data, the put option expiring on March 22nd, with a strike price of $165, saw a trading volume of nearly 7,000 contracts on February 12th, with ask proportions exceeding 78%, indicating that the majority were opening purchases.
However, after February 12th, Tesla's stock price experienced overall upward fluctuations, with a more than 6% increase in closing price on February 15th. During this period, the contract price dropped by as much as 80%. Despite the overall decrease in trading volume, a continuous uptrend in open interest can be observed.
After February 29th, trading volume surged, open interest continued to rise, and sellers dominated the trading positions, indicating a high probability that the same trader was buying on dips.
As of March 6th, the average price of these contracts reached $2.74. Considering the possibility of traders buying on dips, the profits from this round of trading should be quite substantial.
The trading details for the put options expiring on March 22nd, with a strike price of $170, are essentially consistent with the above-mentioned operations. Judging by the average contract price, the profit potential for the put option with a strike price of $170 may be even higher.
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72734102 : Sounds like huge hedge funds manipulating market against Tesla
Jalapenoterry65 : I’m in for the long haul.
72734102 : For the Fools who aren’t bright enough to notice! Tesla is a Tech Stick and Energy company! Plus more coming! Tesla in time will be a Major Brand dominating much market Space! Get on Long or Get LEFT Behind. LMAO again
72898695 : This data is from the past. Please analyze it in the future. That's enough.
欢跃的奥古斯特 72734102: It's not what it sounds like, it is!
BelleWeather Jalapenoterry65 : Me too.