Tesla, Amazon, Meta: Options Market Offers Clues On Crucial Trading Levels For The Week

Major Wall Street indices closed at least 1% higher on Friday in anticipation of lawmakers reaching a consensus on the debt ceiling crisis over the weekend.

As anticipated, President Joe Biden on Sunday reached a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025. Biden also said the deal was ready to move to Congress for a vote.

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Under these circumstances, volatility could subdue a bit but market participants will maintain caution keeping an eye on Congress' vote. To get a better picture on how Wall Street is pricing-in crucial trading levels for some of the mega-cap stocks, here's a look at the options market's outlook:

1. Tesla Inc TSLA: Shares of Tesla closed 4.72% higher on Friday, at $193.17. Options expiring on June 2 indicate significant open interest accumulation at the $200 Call strike, indicating traders are not expecting the stock to breach this level on the upside this week. On the downside, the range between $175 and $185 may provide some support, although the open interest numbers are not displaying conviction on a particular level, just yet.

2. Amazon.com, Inc. AMZN: Shares of the retail giant closed 4.44% higher on Friday at $120.11, according to Benzinga Pro. Options expiring on June 2 show relatively higher open interest at the $125 Call strike indicating the level could provide some resistance in the short term. On the downside, the $115 level may provide support in the near term.

3. Meta Platforms Inc META: Shares of Meta closed 3.7% higher on Friday at $262.04. Options data shows there's relatively higher open interest accumulation at the $270 Call strike, indicating the level could act as a short-term resistance. On the downside, the $245 Put strike has decent open interest accumulation, indicating the level may act as a support in the near term.

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

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