Benzinga
Tesla options traders cancel large volumes of calls
Tesla Inc (NASDAQ: TSLA) gained another 2.8% on Wednesday and has risen 1,560% over the past 18 months. While Tesla bulls are betting that the stock’s insane run will continue after a Democratic Senate turn in Georgia, some Tesla options traders dumped large amounts of call options on Wednesday. Related link: What a Democratic victory in Georgia’s run-off election means for the stock market The Tesla trade: On Wednesday morning, Benzinga Pro subscribers received dozens of warnings related to extraordinarily large Tesla options. Here are the four biggest: * At 9:30 a.m. ET, a trader is selling 310 Tesla call options with a strike price of $ 260 that expired on September 17th. The contracts were sold at a bid price of $ 500 and represented a clumsy bet of $ 15.5 million. At 11:31 AM ET, a trader sold 921 Tesla call options with a strike price of $ 1,400 that expired in January 2022. The contracts were sold near the bid price at $ 100 and a clumsy bet of $ 9.21 million. At 11:33 a.m. ET, a trader was selling 798 Tesla call options with a $ 850 strike price that expired on June 18th. The contracts were sold at a bid price of $ 117.46 and a clumsy bet of $ 9.37 million. * Less than a minute later, a trader sold 798 Tesla call options with a strike price of $ 700 that expired on March 19th. The contracts were sold at a bid price of $ 130.38 and were a clumsy bet of $ 10.4 million. Why it’s important: Even stock-only traders regularly watch the optical market activity for unusually large trades. Given the relative complexity of the options market, large options traders are generally considered more sophisticated than the average stock trader. Many of these great options traders are wealthy individuals or institutions that have unique information or theses related to the underlying stock. Unfortunately, stock traders use the options market to hedge their large stock positions, and there is no sure way to determine if an options trade is a stand-alone position or a hedge. In this case, given the relatively large size of the largest Tesla options, there is certainly a possibility that it could be an institutional hedge for a large position in Tesla shares. Tesla Investors Cash In: Wednesday’s big option trade comes after Tesla reported a record 180,570. vehicle deliveries in the fourth quarter, an increase of 29.6% compared to the third quarter. That number exceeded the estimate of 174,000 vehicles, and Tesla delivered 499,550 vehicles for the full year 2020. Tesla bulls emphasize the fact that growth of any kind is impressive given the difficult 2020 environment, while bears point out that the 800% increase in market capitalization does not exactly match the 35.9% increase in deliveries not. Would comfortably exceed 500,000 vehicle deliveries in 2020. CEO Elon Musk also said Tesla would have a million robotic actions in operation by 2020. Tesla investors hope the Democrats in charge of the White House and Congress will provide a significant backlash for clean energy stocks. . On Wednesday, Daniel Ives, an analyst at Wedbush, said a stock in Georgia would be particularly positive for stocks such as electricity such as Tesla, General Motors Company (NYSE: GM) and Fisker Inc (NYSE: FSR). TSLA card by TradingView new TradingView.widget ({“width”: 680, “height”: 423, “symbol”: “NASDAQ: TSLA”, “interval”: “D”, “time zone”: “Etc. / UTC” , “theme”: “light”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “f1f3f6”, “enable_publishing”: false, “allow_symbol_change”: true, “container_id”: ” tradingview_12fc0 “}); Benzinga’s Tasks: The four biggest option trades on Wednesday morning were all call sales, and they represent a total of more than $ 44 million in a clumsy trading volume of Tesla options. Tesla bulls can not be upset about option traders who after the historic run of Tesla can earn a huge trading profit on these calls. Read more about Benzinga * Click here for Benzinga options * What a Democratic victory in Georgia’s run-off election means For the stock market * 10 best S&P 500 stocks of 2020 (C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.