The S&P 500 and the Nasdaq eked out modest gains on Monday (Apr. 27) in muted trading, as investors took a breath at the top of an eventful week, with earnings, economic data, the U.S. Federal Reserve's rate decision and the ebb and flow of Middle East tensions all crowding the docket.
Regarding the options market, a total volume of 53,626,166 contracts was traded, of which 59% were call options.
Top 10 Option Volumes
Top 10: NVDA, VIX, TSLA, NFLX, INTC, AMZN, AAPL, SOFI, MSFT, PLTR
Source: Tiger Trade App
Tesla stock rose 0.63% to $378.67 on Monday. On Friday, Tesla filed forms with the Securities and Exchange Commission registering about 304 million shares of common stock relating to Musk’s 2018 pay award.
Tesla shareholders voted to award the often-debated options in 2012. A Delaware judge voided the award in 2024, citing inadequate shareholder disclosures. Shareholders reauthorized the award in 2024, which didn’t change the judge’s mind. Ultimately, the Delaware Supreme Court sided with Tesla in 2025, keeping Musk’s stock options intact.
Bulk order related to Tesla bought 2,000 call options with a $600 strike that expiring on December 18, 2026 and simultaneously selling 2,000 put options with a $350 strike.
Source: Tiger Trade App
Source: Tiger Trade App
In terms of execution, the call purchases cost approximately $2.05 million, while the put sales generated about $8.262 million in premium income. The structure results in a net premium inflow of roughly $6.212 million.
The trade represents a classic medium- to long-term bullish position. The payoff profile is contingent on the underlying stock trending higher over time. However, the structure carries significant downside risk: if the share price falls below $350, the trader faces potentially unlimited losses due to the obligation to take delivery of the underlying shares.
The positioning underscores strong long-term confidence in Tesla, while also reflecting a willingness to assume substantial downside exposure.
Unusual Options Activity
Shares of SanDisk closed at $1,070.20, up 8.11% on the day.
Two large sell-call transactions in long-dated options — at $900 and $1,100 strike prices — recorded notional values of approximately $44.42 million and $36.41 million, respectively. Both trades expire on January 15, 2027, indicating that institutional investors are extending duration to capitalize on time decay and the currently elevated implied volatility environment, thereby maximizing premium income.
Source: Tiger Trade App
The call-selling activity reflects a cautious outlook on the stock’s trajectory. While high implied volatility points to expectations of significant price swings, the positioning suggests investors see a range-bound to mildly bearish pattern rather than a sustained upward rally. In such high-IV conditions, premium-selling strategies appear particularly attractive on a risk-reward basis.
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