Options market signals a heavy ride for Tesla shares


Shares of Tesla rose in U.S. forward trading on Thursday, extending recovery from this week's decline, but analysts pushed the stock forward after a sharp rise in derivative positions and halted its full return. Given

Options market signals a heavy ride for Tesla shares


Shares of the electric carmaker rose nearly 22 percent to $373.50 in premarket trading, set for the second straight day of gains following the previous session's 11 percent rally.

Shares of Tesla fell 21% on Tuesday - the biggest one-day decline in the record - after a surprise drop in stock from the S&P 500.

Earlier this week, Self-cleared $75 billion from the company's market value, which revolved around massive betting on Tesla's options by retailers and institutional traders during a four-fold increase in stock since March. Increased due to built-in hedges.

Peter Garnry, head of equity strategy at Saxo Bank, said: "The extra good in call options has suddenly fallen on a massive scale and you got this turn last week.”

The volatility in Tesla's options is close to 100 percent, which has led many speculators to invest in cash through the spread structure and the massive buying and selling of stocks in the coming days. Possibly affected.

More than 100,000 Tesla call options - the right of buyers to buy stocks in contracts - have traded on average over the past three sessions, up more than 30 percent in recent weeks, a London-based trader said. A businessman living in said.

Nevertheless, the sudden rise in borrowing of Tesla shares by short sellers is releasing ٪ outstanding shares, which shows that there is a great deal of war going on between the bulls and the bears.

"I think they (short sellers) are definitely smelling blood," Garnry said.

Tesla is not alone. Apple and other major technology stocks have also seen their options volume skyrocket and stock prices fall this week, prompting investors to make large-scale option purchases through retailers and Softbank Group Corporation <9984.T> What is the reason for the joy of August and September. step back.

Garnry added, "This was learned in risk management (for retailers) ... I think now the US election will also be jeopardized as it will be the center of attention in terms of risk. ۔ "

He believes that US stocks can trade from here anyway.

Wall Street's biggest players, however, see the tech-led sell-off as a commotion rather than the beginning of a long slide, and they don't see it as a reason to run for the door.


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