To The Moon

Since $Tesla Motors(TSLA)$ ’s earnings release last week, its stock has skyrocketed, boosting Elon Musk's net worth by billions overnight. Last Friday, Tesla's options saw a surge in bullish volume, bringing substantial profits.

This week, $MicroStrategy(MSTR)$ is set to report earnings after the close on Wednesday, and sentiment is increasingly bullish. Meanwhile, $Trump Media & Technology(DJT)$ is also seeing hot trading volume.

What options trading opportunities does this week hold?

Hot Topics in the Options Market

Last Friday, U.S. markets closed mixed. $.DJI(.DJI)$ slipped 0.33% to 42,374.36, while the $.IXIC(.IXIC)$ rose 0.76% to 18,415.49, and the $.SPX(.SPX)$ edged up 0.21% to 5,809.86.

In pre-market trading, futures for the three major indexes showed a mixed bag: NASDAQ futures ticked down 0.03%, S&P 500 futures crept up 0.01%, and Dow futures dipped 0.01%.

Options Market Recap: TSLA, NVDA, SOFI, AAPL, MSTR, and MARA

1. $Tesla Motors(TSLA)$

Boosted by an impressive Q3 earnings beat, $Tesla Motors(TSLA)$ ’s stock soared 21.92% overnight. On that day alone, Tesla’s options volume exploded to 5.21 million contracts, nearly tripling from the previous day, with open interest reaching 6.79 million contracts.

In its report, Tesla posted adjusted earnings per share (EPS) of $0.72, beating expectations of $0.60. Gross margin hit 19.8%, far outpacing the expected 16.8%, and free cash flow soared to $2.74 billion, crushing the anticipated $1.61 billion.

Tesla’s Cybertruck made its debut with positive gross margins, and progress is strong on new model plans and budget-friendly vehicles. Plus, energy storage continues its robust growth.

2. $NVIDIA Corp(NVDA)$

NVIDIA’s stock saw a modest 0.61% uptick, but options trading volume fell by nearly a third, totaling 2.64 million contracts. Open interest stands at 27.5 million contracts.

3. $SoFi Technologies Inc.(SOFI)$

SOFI shares jumped 4.89%, with options volume doubling from the previous day to 770,000 contracts. Open interest reached 3.13 million contracts, highlighting growing interest following the price spike.

4. $Apple(AAPL)$

Apple’s stock slipped a slight 0.08%, with options volume down over 50% to 520,000 contracts. Open interest remains significant at 5.85 million contracts.

5. $MicroStrategy(MSTR)$

MicroStrategy surged 10.25%, with options volume up to 450,000 contracts and 63.01% of those being bullish. Analysts maintain positive ratings, with BTIG raising its price target to $240. Some see MSTR as a proxy for Bitcoin, which Bernstein predicts could hit $200,000 by 2025. MSTR reports earnings after Wednesday’s close, adding further interest.

6. $Marathon Digital Holdings Inc(MARA)$

MARA edged up 0.83%, though its options volume fell slightly to 280,000 contracts. Open interest is steady at 1.48 million contracts.

Unusual Options Activity

Tesla’s options market remains hot, with high demand for both calls and puts. Notably:

Calls with a $262.5 strike price expiring on November 1 saw an impressive 1272.73% gain, trading 49,600 contracts.

Puts at a $247.5 strike expiring October 25 dropped by 98.52%, with 91,700 contracts trading.

Implied Volatility and DJT’s Uncertainty

DJT shares rose 32% last week, with options volume at 231,300 contracts and a bullish tilt of 63.11%. Implied volatility spiked to 127.30%, reflecting the market's heightened uncertainty around the stock’s future.

The options market is showing a split trend—hot trading in popular stocks like Tesla, while others see declining volumes. As always, investors should closely monitor market dynamics and carefully weigh risks when trading options.