There was heavy selling in the $TSLA 20241011 260.0 CALL$ and $TSLA 20241011 270.0 CALL$ , suggesting institutions see $260 as the likely top for now.
For existing holders, selling covered calls at $260 or $270 strikes would not result in a loss. $TSLA 20241011 260.0 CALL$ $TSLA 20241011 270.0 CALL$
The low probability event has happened again and again. No matter which direction you trade, once open interest spikes, an avalanche is guaranteed.
Bullish open interest spikes lead to crash-up moves higher, while bearish spikes bring crash-down selloffs.
Institutions have started closing out some $120 calls, so this week will likely settle above $120, with upside targeted towards $130.
Moreover, the $130 strike has the largest call open interest for the October 18th expiration.
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