Tesla, Amazon, Meta: What Options Market Shows About Key Trading Levels Ahead Of Potentially Volatile Week

Equity markets have so far displayed tremendous resilience to the debt ceiling stand-off as President Joe Biden's administration and Republican lawmakers appear to find it difficult to reach a middle ground on their respective demands.

The SPDR S&P 500 ETF Trust SPY, in fact, has gained 1.45% in last one month while the Invesco QQQ Trust Series 1 QQQ rose over 6% during the period, according to Benzinga Pro.

As the so-called X-date in early June – the date when the government may likely run out of options to fund itself – is getting closer, expectations about the likelihood of increased volatility is gathering momentum.

Also Read: Everything You Need to Know About Tesla Stock

To get a better picture of how traders are pricing-in supports and resistances for some of the mega-cap names for the week, here's a look at what the options market indicates:

1. Tesla Inc TSLA: Shares of Tesla closed 1.84% higher on Friday at $180.14. Options expiring on Friday indicate significant open interest accumulation at the $200 Call strike, indicating the level is expected to provide a decent resistance in the short-term. On the downside, the $167.50 Put strike is witnessing a decent open interest accumulation, indicating the level may act as the first line of support.

2. Amazon.com, Inc. AMZN: Shares of Amazon closed 1.61% lower on Friday at $116.25. Options data shows significant open interest accumulation at the $120 Call strike, indicating the level could act as the first line of resistance. On the downside, the $110 level is expected to act as a support.

3. Meta Platforms Inc META: Shares of the company closed 0.49% lower on Friday at $245.64. Options data shows relatively higher open interest accumulation at the $250 Call strike, indicating the level is expected to act as a resistance in the near term. On the downside, the $230 and $235 levels are witnessing slightly higher open interest levels compared to other strikes. Although the range between these levels could be expected to provide some support in the near term, better clarity will emerge as the week progresses and open interest figures improve.

Open interest data only provides a fair idea about support and resistance levels. Any news break or macro event may cause significant movement in stock prices and a subsequent shift in open interest levels.

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