Tesla, Amazon, Meta: Here Are Crucial Trading Ranges Priced-In By Options Market This Week

Tesla Inc TSLA stock has lost over 11% in the last five trading days after chief Elon Musk indicated the EV-maker will continue cutting prices despite taking a hit on margins. Tesla’s operating margin fell 779 basis points to 11.4% during the first quarter compared to the same period a year ago. Meanwhile, Amazon.com, Inc. AMZN and Meta Platforms Inc META are scheduled to report their earnings this week.

Also Read: Best Penny Stocks

As the market continues to witness bouts of volatility, here's a look at how professional traders are placing themselves in the options market:

1. Tesla: Shares of Tesla closed 1.28% higher at $165.08 on Friday. Options expiring on April 28 show maximum open interest accumulation at the $170 Call strike, indicating the level could act as a stiff resistance in the short term. On the downside, the $160 Put strike is showing maximum open interest accumulation amongst out-of-the-money Put strikes, indicating the level could provide decent support.

2. Amazon: Shares of the retail giant closed 3.03% higher at $106.96 on Friday. Options market data show maximum open interest accumulation at the $110 Call strike, amongst out-of-the-money Call strikes, indicating the level could provide a short-term resistance. On the downside, the $104 level could act as a decent support in the short term, although the open interest accumulation numbers aren't as convincing as those among Call strikes.

3. Meta: Shares of Meta closed 0.08% lower at $212.89 on Friday. Options traders have factored in a wide trading range for Meta shares this week. Open interest accumulation is highest at the $220 Call strike, indicating the level could act as a potential resistance. On the downside, the highest open interest accumulation amongst out-of-the-money Put strikes lies at the $200 mark, indicating the level could provide decent support in the short term.

Read Next: No Recession Ahead? Hedge Funds Reportedly Place Record Bets Against Benchmark Treasuries