Put options supported Tesla’s post-stock earnings

Tesla Reports Strong Fundamental Earnings

On Wednesday, October 19, Tesla released its third quarter 22 results. delivered a record number of vehicles in the third quarter.

However, even though earnings were impressive, shares of Tesla (TSLA) fell more than 6% as their results fell short of some analyst estimates. Specifically, on Thursday, the stock traded near $200 until it found price support. At SpotGamma, we believe Tesla bounced off this level because the stock found support at the $200 SpotGamma Hedge Wall.

Tesla $200 Supported Puts

What caused a temporary price floor for Tesla? We believe it was the options complex as indicated by the SpotGamma Hedge Wall support at $200. At SpotGamma, we identify key option levels on stocks and indices by analyzing areas with the greatest concentrations of gamma options and applying our proprietary algorithms. In this case, Tesla had significant buying pressure at $200, as shown below by our Equity Hub model.

(SpotGamma Equity Hub model)

And after

At SpotGamma, we monitor the entire options market daily and update our metrics for our subscribers every morning. If the Hedge Wall rises, we expect to see continued bullish strength for the stock. If the hedge wall moves lower, we might see another downward movement.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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