Whale Trade Detected in Tesla $TSLA Options, $1 Million Bet

  • Post category:Options Trading
  • Reading time:4 mins read
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A whale trade was detected in Tesla $TSLA option flow on July 15, 2022. Someone placed a million-dollar bet that Tesla stock would rise by mid-August.

There was a buyer of 3,000 of the August 880/910 call spreads at an average price of $3 per contract. The trader bet $900,000 that Tesla’s stock could rise 27% by August expiration.

Tsla Options Open Interest

On July 15, 2022, a day after the news broke of this whale trade, the option flow in $TSLA became somewhat bearish. The bearish activity in the option flow stream shows -$3.74 million, behind only $BABA stock.

Tsla Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

The whale trader is being targeted and may just close out the position now that the spotlight has been shown on his/her trade. It seems like the CNBC segment served as a kind of target for others to buy puts in the stock.

📺 Options Action: Tesla options

Optimize Advisors’ Mike Khouw on a trader’s big bet that Tesla stock will hit $910 by mid-August. On CNBC’s “Options Action,” Michael Khouw of Optimize Advisors said the volume traded in Tesla’s stock on Thursday outpaced the next five highest trading companies combined.

My guess is that the whale is looking at the money flow and moving averages on the stock chart of Tesla.

$TSLA Stock Chart: Technical Analysis

Tsla Barchart Interactive Chart
Daily Price chart of $TSLA stock with Chaikin Money Flow

It seems the whale trader was betting on the Chaiken Money Flow going positive and a moving average cross over with the 20-day MA (gold line) crossing above the 50-day MA (purple line).

Elon Musk Tweet about IF Inflation Comes Down

More evidence that the PPI is forcing the CPI to stay sky high.

Elon Musk will continue to be the target of the Biden regime for his hard-right turn in support of the Republican party as we predicted in the Saturday Show many months ago.

The latest news on this front is that now the SEC is examining a tweet by Elon Musk in which he said that his takeover of Twitter (TWTR) “cannot move forward,” The Financial Times’ Hannah Murphy reports. SEC mergers and acquisitions officials sent Musk’s lawyers a letter asking why the Tesla (TSLA) CEO hadn’t formally notified investors of the “apparent material change” to his $44B bid through a regulatory filing. Source: https://www.wsj.com/articles/amazon-has-been-slashing-private-label-selection-amid-weak-sales-11657849612?mod=djemalertNEWS

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