Tesla Inc (NASDAQ: TSLA) Shares are up 44% from the company’s 5-1 stock split on Aug. 31, and a big options trader can bet the upcoming delivery figures will push the price forward.
The Tesla Trade: At 11:58 a.m. Thursday, a trader executed a buy sweep of 703 Tesla options with a strike price of $ 650 that expires on April 9. The operation represented a bullish bet of 1.9 million dollars for which the operator paid 27 dollars per option contract.
Because it is important: When a sweep order occurs, it indicates that the trader wanted to get into a position quickly and is anticipating a big move in the stock price imminently. A sweeper pays the market price for call options, rather than bidding, sweeping the order book of multiple exchanges to fill the order immediately.
These types of call option orders are typically placed by institutions, and retail investors may find it useful to keep an eye out for sweepers because it indicates that “smart money” has entered a position.
What’s coming up for Tesla: Tesla is expected to release its first quarter 2021 delivery numbers in the coming days.
When Tesla reported its fourth-quarter results in January, the company said it expected to deliver 750,000 vehicles this year. Tesla’s first-quarter delivery figures will give investors an idea of whether Tesla is on track to meet its target.
Tesla’s share price has also fallen nearly 30% in recent weeks amid a slump in the tech sector. With Tesla trading on the Nasdaq now, a big spike in delivery figures could help markets across the board turn around.
TSLA price action: Shares of Tesla rose 1.35% to $ 638.78 in the latest revision Thursday.
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