Quick update given the lighter holiday trading activity.

Options Trading Singapore
12-01

The current squeeze looks more like a rebound than a true trend reversal. Two unusual moves stood out:

1️⃣ Tesla The long call position ($TSLA 20260220 440.0 CALL$ ) was fully closed — just one day after being rolled on Friday. That kind of rapid reversal is extremely rare. It signals that whoever held it is expecting a meaningful pullback and decided to take risk off the table early.

2️⃣ Google Options flow turned noticeably defensive. Major call open interest is being unwound, while new put positions are opening aggressively. One example: 21k contracts of the Dec 19th $310 puts ($GOOGL 20251219 310.0 PUT$ ) were bought. That’s a clear shift toward hedging and downside protection.

How to use options to hedge in a volatile market?
Some market participants were concerned the pullback may signal more trouble for markets ahead, but others say the pullback is expected given the extraordinary rally in equities this year. Option hedging strategies work best if you're already hedged when the correction arrives. But even if you're late to the game, you still have "options." -------------- How to hedge volatility with options? Join our topic to win tiger coins!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • ZOE011
    12-01
    ZOE011
    Mind the pullback signals. GOOGL puts activity looks like institutional hedging [看跌]
  • CAP21
    12-02
    CAP21
    Great article, would you like to share it?
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