Tesla Stock Defies Options Market's Resistance Expectations: What's Next?

Shares of Tesla Inc TSLA surpassed the $250 resistance level this week, potentially disappointing Call sellers. The stock has shown a similar pattern in the previous week and has experienced a notable 38% rally in the past month. 

Also Read: Everything You Need to Know About Tesla Stock

However, the bond market’s growing pessimism ahead of key events poses a potential hurdle to the stock’s rally. The upcoming testimony of Federal Reserve Chair Jerome Powell before Congress and the Bank of England’s monetary policy decision are factors to watch. Let’s examine how options traders are considering crucial trading levels for Tesla stock this week:

1. Resistance: Tesla closed at $260.54 on Friday. Options expiring this Friday show relatively higher open interest at three levels. The $260 Call strike exhibits notable open interest, suggesting it could act as a resistance if the stock experiences a correction. If Tesla maintains its upward momentum, the $280 and $300 levels could then become significant resistance levels.
2. Support: On the downside, there is relatively higher open interest at the $250 Put strike, indicating that traders may not anticipate the stock to drop below this level in the event of a correction. 

It’s important to note that open interest figures provide a general indication of support and resistance. Significant stock price movements or macro events can lead to substantial shifts in open interest numbers.

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