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Big Money Options Activity at Tesla Reveals Bullish Sentiment

March 25, 2023

Options activity at Tesla Inc. (NASDAQ: TSLA) has been particularly noteworthy in recent days, with large traders and institutions showing a strong appetite for buying calls and selling puts. This bullish sentiment suggests that many market participants believe the electric vehicle manufacturer's stock has further upside ahead.

According to data from Benzinga Pro, the biggest buyers of Tesla calls in the past week have been institutions and professional traders. These large traders have been snapping up calls with strike prices ranging from $700 to $1,000, indicating a strong expectation that the stock will continue to rise.

One particularly interesting trade was placed by a large institutional investor, who bought 10,000 calls with a strike price of $800. This trade has a delta of 0.75, indicating that the investor is highly confident that Tesla's stock will rise above $800 in the near future.

Another notable trade was placed by a professional trader, who sold 5,000 puts with a strike price of $600. This trade has a delta of -0.65, suggesting that the trader is highly confident that Tesla's stock will not fall below $600 in the near future.

While options activity is not a guarantee of future performance, it can provide valuable insights into the market's sentiment. In this case, the large amount of buying activity in Tesla calls suggests that many market participants believe the stock has further upside ahead. However, it's important to keep in mind that options trading involves risk, and it's always important to do your own research and consider your own risk tolerance before making any investment decisions.