Understanding Tesla's Unusual Options Activity

Thousands of traders just like you are using Benzinga Options to learn the formula that Nic Chahine uses to earn a full-time living.

On Friday, shares of Tesla (NASDAQ:TSLA) saw unusual options activity. After the option alert, the stock price moved up to $679.2.

  • Sentiment: BEARISH

  • Option Type: SWEEP

  • Trade Type: PUT

  • Expiration Date: 2021-07-09

  • Strike Price: $550.00

  • Volume: 13421

  • Open Interest: 4261

Three Indications Of Unusual Options Activity One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset.

2 views0 comments

Recent Posts

See All