Tesla Inc. closed at USD 298.32, down 2.97%.
A massive bearish sweep dominated Tesla’s options tape, led by a single $3.00 million long-dated put purchase that dwarfed all other activity. Despite a modest bullish call spread, total bearish premium flow surged to $4.32 million, leaving a net bearish gap of $3.94 million and signaling deep downside conviction among large traders.
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Options Indicators
TSLA’s implied volatility is 52.68%, and with an IV percentile of 60.96%, current volatility sits in a neutral range rather than an extreme high or low. At the same time, the IV/HV ratio of 0.75 suggests implied volatility is running below historical realized volatility, indicating option pricing is not especially rich despite a moderately elevated absolute IV reading. Overall, TSLA options appear fairly priced to slightly inexpensive, rather than meaningfully overvalued. The Call/Put volume ratio is 1.01.
Large Trades
A PUT buy worth $3.00 million was the dominant large trade, with 1,500 contracts bought on the December 18, 2026 $275.00 put. With TSLA referenced at $298.32, this strike was out of the money at the time of execution, making it a clear downside bet or protective hedge positioned for a meaningful decline over a longer-dated horizon. The size and maturity suggest the trader was willing to pay substantial premium for bearish exposure extending well into late 2026, which points to a serious conviction that TSLA could weaken materially from current levels.
A bullish call spread worth $0.24 million was the other highlighted trade, structured as a July 31, 2026 $330.00/$345.00 bull call spread with 6,730 contracts bought at the lower strike and 6,730 contracts sold at the higher strike. Both calls were out of the money versus the $298.32 reference price, and the package was executed for a net debit of $0.24 million. This is a defined-risk bullish directional strategy that seeks upside into the $330.00 to $345.00 zone while reducing upfront premium cost through the short higher-strike call, signaling a measured upside view rather than an aggressive breakout expectation.
Despite some interest in upside through limited-risk bull call spreads, the flow was overwhelmingly dominated by put buying and bearish premium-selling structures, indicating that larger traders were primarily positioned for downside risk, capped upside, or at best a constrained trading range rather than a sustained bullish move in TSLA.
Strategy Reference
For traders seeking to sell premium in a neutral-to-bearish environment, the December 2026 $275.00 put strike absorbed heavy buying and could serve as a reference for put sellers targeting a low probability of assignment, though the aggressive bearish flow warrants caution and tight risk management.
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