What's Unusual Options saying?(6.7)Is Tesla Topping?

On June 7th, the market's rise and fall map looked like this, clearly showing the flow of funds across various industries. Mainly, there was a shift from previously high-performing big tech companies such as $Amazon.com(AMZN)$ $Alphabet(GOOGL)$ $Microsoft(MSFT)$ $NVIDIA Corp(NVDA)$ $Meta Platforms, Inc.(META)$ towards the industrial, energy, and raw materials sectors. This can also be understood as these sectors catching up with the recent market trends. The overall performance of the $iShares Russell 2000 ETF(IWM)$ and the $DJIA(.DJI)$ surpassed that of the $S&P 500(.SPX)$ and the $NASDAQ(.IXIC)$

Consequently, pressure mounted on the big tech companies. On the other hand, in this wave of AI led by NVDA, $Tesla Motors(TSLA)$ which has quietly risen for 9 consecutive days, also broke through its previous platform and is currently facing investors' choices.

In the unusual large transactions on June 7th, there were several end-of-day PUT options for TSLA. Generally speaking, for TSLA with higher implied volatility (IV), there are more traders selling PUT options, but there are rarely any sellers of end-of-day options, especially at or near the current price. This also indicates that some investors currently believe that a pullback in TSLA is inevitable. Of course, there are also investors acting as market makers who want to enter at nearby prices and reduce trading costs.

Since there won't be any major events until next week, the final trading day of this week is unlikely to be intense, and the sellers of PUT options may have considered this aspect.

Similarly, $Ford(F)$ which has experienced a sharp rise in the past two days, also saw significant end-of-day PUT options. Considering the recent series of negative news for Ford, including electric vehicle delays and numerous recalls, yesterday's rise was likely due to the news of selling a German factory. Perhaps investors still don't have much confidence in a sustained rebound.

For investors who like to sell PUT options, it might be worth paying attention to $Atlantica Yield PLC(AY)$ . As a company in the renewable energy industry, it has also experienced a significant pullback recently, with large PUT options appearing at around 10% below the current price, with an IV close to 30.

Finally, I feel sorry for the person who sold a PUT option with a $22 strike price for $GameStop(GME)$ in mid-July during yesterday's trading. Although GME's IV reached 100+, the post-market release of outrageous financial information caused the company's stock to plummet below $21. Fortunately, the loss was not significant, and perhaps there may be a rebound in today's intraday trading.