Peter Smith
⬤ Tesla surged this week rising from $427 three days ago to $450. A large block of call options accumulated at the $450 strike, while active traders bought out-of-the-money calls at $440 and $445. The chart shows Tesla reached $451.34 in the latest session after multiple days of gains.
⬤ The 15-minute chart shows Tesla recovered from a decline that ended with a reversal on December 2. The stock moved up from the mid-$430s and climbed steadily setting higher highs plus higher lows. By December 3, Tesla had risen more than $23 from its recent low, with strong buying pushing it to $451.34.
Large call buyers gained millions as Tesla approached the growing call wall at $450.
⬤ The options activity shown in the chart data explains the move. A fast growing call wall at $450, along with heavy call buying at $440 and $445, showed major traders betting on further upside. As Tesla moved toward $450, those positions became highly profitable. The final bars on the chart show the momentum continued, with Tesla closing near the session high.
⬤ This is significant because options positioning can influence short term price movement in heavily traded stocks like Tesla. When concentrated call activity aligns with a rally, it demonstrates how liquidity and strike-level clustering can intensify price moves. With Tesla now around $450, this week's activity illustrates how derivative flows may affect momentum in major tech stocks going forward.
Peter Smith
