Is Tesla’s iPhone moment upon us?
Tesla (TSLA) has always been a stock that thrives on volatility. But while retail investors and traders debate its future, the real power behind its next big move lies in the hands of Wall Street’s market makers.
These firms control billions in options flows, and right now, they’re setting up Tesla for a potential breakout — or an ugly reversal.
The Options Game Driving Tesla’s Price
Tesla’s stock has long been a favorite of options traders, and that means market makers have to hedge their books accordingly. When traders pile into call options, market makers buy Tesla stock to hedge their exposure.
When puts dominate, they sell. This constant adjustment creates hidden waves of buying and selling pressure that most investors never see.
Lately, Tesla’s options activity has been heating up.
Open interest in out-of-the-money calls has surged, signaling that speculators are betting on a move higher. But here’s the key: If Tesla keeps climbing, market makers will be forced to buy even more shares to maintain their hedges, driving prices even higher.
This self-reinforcing cycle is what can turn a small rally into a massive breakout.
What the Big Money Is Watching
The critical level to watch is Tesla’s recent resistance zone. If the stock pushes past key technical levels, it could trigger a rush of call option buying that forces market makers to load up on shares.
That’s how Tesla’s past parabolic moves have played out, and the setup is eerily similar today.
But the flip side is just as important. If Tesla stalls and traders start unwinding their bullish bets, market makers will have to dump stock, accelerating any downside move. That’s why these hidden forces make Tesla one of the most dangerous — and potentially rewarding — stocks to trade.
Market makers don’t care about Tesla’s fundamentals. They don’t care about its delivery numbers, its self-driving ambitions, or its latest price cuts.
They care about one thing: managing risk. And right now, their positioning suggests Tesla could be on the verge of its next major move.
For traders, the key is to stay ahead of the options flow. If Tesla starts breaking higher, it could quickly snowball into a major rally. But if it loses momentum, the unwinding of bullish bets could send shares spiraling lower. Either way, Wall Street’s market makers will be the ones pulling the strings.
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Is This Tesla’s ‘iPhone Moment’? Wall Street Thinks So
Wall Street giants are pouring billions into Tesla ahead of what could be the company’s biggest transformation since the Model 3.
While everyone watches Elon’s tweets, Wall Street quietly accumulated over 10M Tesla shares in 42 days — and it could signal the company’s biggest transformation is coming sooner than you think.
