To The Moon

$Tesla Motors(TSLA)$ Surges 12% in a Single Day, Biggest Rally of the Year After Two Weeks, Here's Why ......

1. Short Squeeze (Short Squeeze was actually pretty much last week);

2. Gamma Squeeze. not uncommon with Tesla's volatility.

Below is the March 19th, TSLA's Charm Exposure for the March 28th expiration (which in this chart refers to the overall sensitivity of Tesla's option positions to Charm)

An option's Charm (a.k.a. Delta decay) is a second-order Greek letter that measures the rate of change in an option's Delta value over time.

Specifically, it reflects the extent to which the passage of time affects the option's delta if the price of the underlying asset remains constant.

• Charm = ∂Δ/∂T (Δ is Delta and T is the remaining time to expiration), which represents the change in Delta per unit change in time.

• If Charm is 0.05, then Delta will increase by 0.05 each day (assuming all other factors remain constant).

• Charm's Exposure (position) also represents the sum of each option's Charm multiplied by its position size

This can be seen from the information in the chart above:

1. An unusually large Charm value may indicate a large open position near that strike price (e.g., Call at 250, 260), which could explain its large fluctuations beyond 260

2. A larger absolute value of Charm indicates that the position is more sensitive to time decay

3. Reflecting the market's general bet that TSLA will break out before expiration (250-260), a large number of imaginary options will convert to real/imaginary, exacerbating the time sensitivity

Fundamentally there isn't really much to analyze and it doesn't dominate sentiment or the market.People follow their own bias to understand:

• Tesla FSD Free Trial Suddenly Suspended in China, or Related to Latest Autopilot Regulatory Policies The free trial of FSD, which was highly anticipated, stepped on a red line, and the progress of the approval is a mystery.Coupled with the news that Tesla has partnered with Baidu (such a hopeless AI company) to localize the training of FSD, the stock has inevitably suffered a setback.

• The FBI announced an investigation into Tesla arson, vandalism, and the shocking appearance of an explosive device in the showroom of Tesla's headquarters!Nearly 80 attacks put Tesla in a tough spot.But the official attention may be the reason for the late rally 🆙.

Tesla is currently in a whirlwind of increased volatility.While +12%+ shows a reversal in sentiment, investor sentiment is critical for the rally to be sustained

$GraniteShares 1.25X Long TSLA Daily ETF(TSL)$ $Direxion Daily TSLA Bull 2X Shares(TSLL)$ $Tradr 2X Short TSLA Daily ETF(TSLQ)$