On Thursday, the stock price returned to the 110 level, and options activity surged at key strike prices. It is expected that Friday’s closing range will be between 110 and 115. On Thursday, there was significant selling of the 115 call and the 110 put, with 32,000 and 54,000 contracts opened, respectively.
For next week (April 4th), the expected price range is 100–118, with institutions selling calls at the 118 strike. Before the expiration of the April monthly options, the projected price range is 100–130.
There are two notable bearish trades:
A sell call at the 125 strike:
$NVDA 20250919 125.0 CALL$.A bearish vertical spread: buy the 80 put
$NVDA 20250815 80.0 PUT$, and sell the 50 put$NVDA 20250815 50.0 PUT$. The 50 put has double the volume of the 80 put.
It’s unclear whether the bottom for next week will be 100 or 110. Judging by the expected range, it looks like another week similar to this one. The recent tariff news doesn’t seem to be much of a positive catalyst. Unless institutions roll their positions before the 2nd, the low strike prices on sell calls are almost certain to face margin calls. Are they waiting for management to address this directly in the earnings report?
If you feel that the risk of selling puts is too high, consider rolling them out by two weeks for added safety.
Tesla’s price range remains extremely wide. For next week, the expected range is 220–300. Bearish positions are still being aggressively opened, especially with the vehicle delivery report due next week.
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