Unusual Options talks?(6.20)Tesla Continue Squeezing, Someone Betting Against AAPL?

June 20th, there was significant differentiation in the stock market, but a few standout stocks were quite impressive.

S&P 500 Map

$Tesla Motors(TSLA)$ $NVIDIA Corp(NVDA)$ continued to lead the gains in $NASDAQ(.IXIC)$ and $S&P 500(.SPX)$ . Since the recent bottom, Tesla hasn't experienced much of a decline and has now surged to nearly 280. Currently, all the conditions for a Gamma Squeeze are fully met, and Tesla is usually heavily shorted, which means it's poised for both a short squeeze and a gamma squeeze. In other words, it's a situation ripe for a frenzied market. The bulls of Tesla aren't entirely baseless in saying "cherish the Tesla below 300." It seems quite feasible for Tesla to reach 300 easily.

As for NVDA, its success is largely attributed to support from its peers. With a time lag between its products and those of its competitors, investors have limited short-term alternatives.

Looking at the significant transactions, the strike price for the large put options (sell puts) of Tesla has risen above 270. On the other hand, there are still plenty of covered call options, including $Abbott Laboratories(ABT)$ , $Warner Bros. Discovery(WBD)$ , $Advanced Micro Devices(AMD)$ and $General Motors(GM)$ , and even Chinese stocks like $JD.com(JD)$ $Pinduoduo Inc.(PDD)$ are seeing investors beginning to cover.

$Warner Bros. Discovery(WBD)$ has shown a trend of opening high and then declining after the recent release of "The Flash," which has influenced the stock price and prompted some investors to choose covered calls.

AMD has also experienced significant volatility, and investors believe it still lags behind NVIDIA, especially after a major conference.

Regarding Chinese e-commerce, following the recent 618 shopping festival, there seems to be a sense that the positive news has been exhausted, and JD.com (JD) and Pinduoduo (PDD) have seen large covered call transactions.

It's worth noting that $Apple(AAPL)$ saw a large put option within the money yesterday with a strike price of $195, which is $10 below the current price. For AAPL, this is considered deeply in the money, with absolute Delta values approaching 0.9. The expiration date is July 7th, which is in about two weeks.

This type of large transaction is unlikely to be a naked sell put since it carries the same costs and minimal returns as holding the actual shares, with significant risks involved. Therefore, it's more likely a large buy of put options as a risk hedge.

This also suggests that some large investors anticipate a significant decline within the next two weeks! Stay cautious and make the most of the current situation.