Tesla Inc (NASDAQ: TSLA) Shares have risen 44% since the company’s 5-1 stock split on August 31, and a major options dealer may be betting that the next delivery numbers will push the price up.
The Tesla Commerce: At 11:58 am on Thursday, a dealer ran a buy sweep of 703 Tesla options with an exercise price of $ 650 due on April 9. The deal represented a bullish bet of $ 1.9 million for which the dealer paid $ 27 per option contract.
Because it’s important: When a scan order occurs, it indicates that the trader wanted to enter a position quickly and is predicting that a major movement in the stock price will occur soon. A sweeper pays the market price for the purchase options, instead of making a bid, which scans the order book from multiple exchanges to fulfill the order immediately.
These types of call option orders are generally placed by institutions, and retail investors may find it helpful to watch sweepers because it indicates that “smart money” has entered a position.
What’s to come for Tesla: Tesla is expected to release its first quarter 2021 delivery numbers in the coming days.
When Tesla released its fourth quarter results in January, the company said it expected to deliver 750,000 vehicles this year. Tesla’s delivery figures for the first quarter will give investors an idea of whether Tesla is on track to meet its goal.
Tesla’s share price has also dropped by nearly 30% in recent weeks amid a tech defeat. With Tesla now trading on Nasdaq, a big knock on delivery numbers could help general markets take a turn.
TSLA Price Action: Tesla shares were up 1.35% to $ 638.78 in the last check Thursday.
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