The options market, ah, can give us some pretty interesting clues about what people think about certain stocks. Like, you know, it's like a window into the minds of traders lah. So, let's take a look at what the options volume is telling us, okay?
Firstly, the options volume shows us how interested people are in a particular stock. If there's a high volume, that means a lot of people are actively trading those options, you know? More people buy and sell options for a specific price and date, so it shows got higher market interest and liquidity.
And, hey, higher liquidity is always better lah! It means it's easier to buy and sell options at the prices you want. No need to worry so much about slippage and all that jazz, you see? Smooth trading, happy traders.
But options volume not only tells us about interest and liquidity, it also gives us a sneak peek into market sentiment. Ah, sentiment, the mood of the market. If more people buy call options, that could mean they think the price going up, so bullish lah. On the other hand, if got more put options being traded, then people might think the price going down, so bearish lor.
Now, let's look at Tesla, ah. Wah, got a lot of action going on. At $270 strike price, got 52k put contacts, and at $300 strike price, got 62.4k call contacts. Wah, a lot of people thinking Tesla can either go up to $300 or drop back to $270. Very exciting ah!
And, eh, look at this lah. The $300 calls got a whopping 78k contracts traded, while the $270 puts only got 17.8k contracts. Wah, this means the market leaning towards the bulls, you know? More people think Tesla can beat the estimates and go up. Must be some confident folks out there.
Yesterday, I wrote about Tesla and the call/put open interest was around 50k contracts each. But now, wah, it gone up to 62.4k call contracts. Means more people joining the bullish party ah.
So, which side you think the options market got it right? The bulls or the bears? We all curious lah! Stay tuned, share this article with your kakis, like and comment, okay? Let's see who got the last laugh!
Comments
Also gross margins are important. IMO, from what i have read and listened to, earnings will beat at .90 cents and gross margins will be greater than 17.5%
It’s odd that Elon said ‘robotaxi’ would earn you up to $30K per year while Hertz market cap has been cut in half after adding 100K Teslas to the fleet over the last 18 months.
TSLA's Put/Call ratio is only a moderate 0.55 and overall the P/C ratio is 0.83 anything; below 1.00 shows market sentiment favors call buyers and people who believe TSLA is going up in the near future.
Technically situation looks also bearish. We should go to 2 digits till end of 2023.
Do not buy this stock. Way too risky now to hold at these prices…..