Tesla, Meta, Amazon: Options Market Reveals Key Trading Levels For You To Watch This Week

Major Wall Street indices registered gains last week led by strong technology earnings, overshadowing any concerns over weakness in the economy. Last week saw Amazon.com, Inc. AMZN and Meta Platforms Inc META report an upbeat set of earnings that beat consensus estimates. Prior to that, Tesla Inc TSLA had announced its earnings and had announced a significant decline in its margins.

With the Federal Open Market Committee scheduled to announce its interest rate decision this week, the market is expected to witness some volatility. To get a better sense of support and resistance levels for these big tech names, here's a look at crucial trading levels priced in by the options market this week:

1. Tesla: Shares of the EV-maker closed 2.57% higher on Friday, at $164.31. Options expiring on May 5^th indicate significant open interest build-up at the $170 Call strike indicating the level could act as a potential resistance for the week. On the downside, the $150-$155 range could provide decent support.

Also Read: Everything You Need to Know About Tesla Stock

2. Amazon: Shares of Amazon closed 3.98% lower on Friday, at $105.45. Options data shows significant open interest accumulation at the $110 Call strike, indicating the level could provide some stiff resistance in the short term. On the downside, maximum open interest accumulation amongst out-of-the-money Put options lies at the $100 mark, indicating that traders are expecting the level to act as a support in the short term.

3. Meta: Shares of Meta closed 0.74% higher at $240.32 on Friday. Options expiring on May 5^th indicate maximum open interest accumulation at the $250 mark amongst out-of-the-money Call strikes, indicating a potential resistance at the level. On the downside, the $240 level is being factored in as potential support for the near term. Since this coincides with the closing price of the stock on Friday, traders may be limited in their bearish view of the stock for the week.

Open interest levels only provide a fair idea about support and resistance levels. A major news break or a macro event can lead to significant stock price movements, thereby causing shifts in the open interest levels as well.

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