Options Spy: Institutions are strongly bullish on Tesla, buying more than 10,000 call options
Speaking at the central bank's annual conference in Jackson Hole, Wyoming, Fed Chair Jerome Bauer maintained a dovish tone. "With more evidence of sustained above-trend growth that could put further increases in inflation at risk, we are prepared to raise interest rates further as appropriate and intend to keep policy at a restrictive level until we are confident that inflation is falling sustainably to achieve our objective."
Bauer also said the Fed would "carefully review" the need to raise interest rates again in the next few meetings, indicating a possible delay in September.
There are growing disagreements within the Fed about the path of interest rates, including the effects of policy lag and the outlook for housing inflation. Bauer's speech does suggest that Fed officials are still debating the impact of tightening measures so far, and they are still unsure how far they need to go.
Some analysts believe that Bauer basically reiterated what people already know, Bauer mentioned that the Fed will "proceed cautiously", which indicates that Bauer does not see any urgency to raise interest rates in September. Krishna Guha, vice chairman at Evercore ISI, noted that Bauer sounded "like a guy who thinks we're probably done raising rates."
Traders are divided on whether the Fed will raise rates at least once this year or leave them unchanged, but bets on another hike rose slightly on Friday, according to CME's FedWatch tool. The odds of a further rate hike by the end of the year are seen at 53 percent, up from about 46 percent on Thursday.
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Option buyer open position (Single leg)
Highlight order:
Buy TOP T/O: $TSLA 20230901 230.0 CALL$ $C 20230915 47.5 PUT$
Buy TOP Vol: $NKLA 20230908 1.5 CALL$ $TSLA 20230901 230.0 CALL$
$Tesla Motors(TSLA)$ For the first time, Tesla will defend itself in court against claims that a malfunction in its autopilot driver's assistant led to a death. This could be a major test of CEO Elon Musk's commitment to the technology. A victory for Tesla could boost confidence and sales of the software; The software sells for as much as $15,000 per vehicle. On Friday, Tesla's call options expiring on September 1 traded 17,500 in a single transaction for a total of $19.9 million.
$Nikola Corporation(NKLA)$ In a regulatory filing from the NKLA last week, Nikola said the recall could "incur significant expenses." To make matters worse, Nikola said there is no guarantee the company "will be able to resume production" of all-electric trucks. This could hurt its brand image, business, cash flow and finances.
Note: This image data is from Tiger PC. This screening is a significant buy open position for options contracts in the market. The purchase of a call option means that the trader believes that the underlying has upward momentum, and the purchase of a put option means that the trader believes that the underlying has downward momentum. These contract openings typically indicate significant activity in the underlying stock, including whether the trader is willing to accumulate a long or short option position.
Option seller open position (Single leg)
Highlight order:
Sell TOP T/O: $META 20230901 322.5 PUT$ $ENPH 20240621 110.0 PUT$
Sell TOP Vol: $KMI 20230922 18.0 CALL$ $MDT 20240119 87.5 CALL$
$Enphase Energy(ENPH)$ Enphase Energy is a global energy technology company that provides smart, easy-to-use solutions to manage solar power generation, storage and communications on one platform. Friday marked its lowest close since Jan. 27, 2022.
$Medtronic PLC(MDT)$ On August 22, 23, local time in the United States, the treatment of hypertension by Renal denervation RDN, which has attracted much attention from the industry, ushered in an important moment of attention, because two companies with different technical directions announced different results. The biggest difference between Medtronic Symplicity Spyral and Recor Medical Paradise is the technical direction used, Medtronic Symplicity Spyra for RF ablation and Paradise for ultrasonic ablation.
Note: This image data is from Tiger PC. This screen is a significant sell open position for an option contract in the market. A sell of a call option means that the trader believes that the underlying trend has peaked, and a sell of a put option means that the trader believes that the underlying trend has bottomed. These contract openings typically indicate significant activity in the underlying stock, including whether the trader is willing to accumulate a long or short option position.
Options portfolio open position
Note: This image data is from Tiger PC. This screening is a significant portfolio of options contracts in the market. Portfolio opening includes a variety of underlying trends, requiring traders to further master the basic knowledge of options for analysis and judgment.
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