Tesla, Meta, Amazon: Here's What Options Market Says About Crucial Trading Levels For The Week

U.S. markets ended on a strong note on Friday after jobs data showed the economy continues to remain strong, cooling fears about a potential recession. Major Wall Street indices closed the session over 1.6% higher.

This week, investors and traders will be keenly eyeing the inflation data that will determine the Federal Reserve's future policy path. President Joe Biden's meeting with House Speaker Kevin McCarthy will also be the highlight as debt ceiling crisis concerns continue to linger. As the market is expected to witness volatility this week, here's a look at crucial support and resistance levels factored in by the options market for these popular tech stocks:

1. Tesla Inc TSLA: Shares of Tesla closed over 5% higher on Friday. Options expiring on Friday show maximum open interest accumulation amongst out-of-the-money options at the $175 Call strike, indicating the level could act as a resistance in the near term. On the downside, the maximum open interest accumulation amongst out-of-the-money Put options can be seen at the $150 Put strike. This indicates traders are pricing-in support at this level. Since Tesla stock closed at $170.06 on Friday, the potential downside that is being factored in for the week stands at over 11%.

Also Read: Everything You Need to Know About Tesla Stock

2. Meta Platforms Inc META: Shares of Meta closed 0.32% lower at $232.78 on Friday. Options expiring on Friday show that open interest accumulation can be seen at the $240 and $250 Call strikes, indicating the zone could act as a short-term resistance. On the downside, the $230 mark could provide short-term support. It is noteworthy that open interest numbers are not indicating a significant build-up at the time of writing and further accumulation towards the beginning of the week is likely to provide better clarity about supports and resistances.

3. Amazon.com, Inc. AMZN: Shares of the retail giant closed 1.59% higher at $105.66, on Friday. Options expiring on Friday show significant open interest accumulation at the $110 Call strike, indicating the level can act as a short-term resistance. On the downside, the $100 level could act as the first line of support.

It is noteworthy that open interest levels only provide a fair idea about support and resistance. Any major news break or macro event could lead to significant stock price movement and a subsequent shift in the open interest levels.

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