Tesla, Amazon, Meta: Crucial Trading Levels Priced In By Options Market For The Week

Shares of mega-cap companies registered mixed performance last week with shares of Tesla Inc TSLA and Amazon.com, Inc. AMZN closing flat while Meta Platforms Inc META stock recorded over 2% gains. As Tesla is scheduled to report its earnings this week, here's a look at how professional traders are pricing-in supports and resistances for these stocks in the options market:

1. Tesla: Shares of Tesla closed at $185 on Friday. Options expiring on Friday show significant open interest build-up at the $190 and $200 Call strikes. Amongst these two strikes, the open interest build-up is relatively higher at the $200 level, possibly reflecting the market's persistent conviction about a stiff resistance at this level. On the downside, the $180 level is expected to provide some support in the near term.

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2. Amazon.com: Shares of the company closed at $102.51 on Friday. Options expiring on Friday indicate decent open interest build-up at the $105 and $110 Call strikes, indicating the levels could provide stiff resistance for the week. On the downside, the $100 level can be expected to provide decent support.

3. Meta Platforms: Shares of the company closed at $221.49 on Friday. Options expiring on Friday indicate the stock could face some resistance at the $225 level, as is reflected by the significant open interest build-up at the Call strike. On the downside, the $212.50 level could act as a decent support.

It is noteworthy that open interest data only provides a fair idea about support and resistance levels. A major news or macro event can lead to a huge movement in stock prices causing a subsequent change in open interest accumulation.

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