Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

TSLA Rockets Higher Again As ‘Someone’ Panic-Buys Massively OTM Call Options

Courtesy of ZeroHedge View original post here.

Forget "50-Cent" – the infamous volatility "whale" trader – there appears to be a new player in the options market that is making bank by buying mysteriously well-timed 'lottery tickets' in one particular stock.

The last few days have seen TSLA shares literally explode higher – lurching every day, and sometimes multiple times per day, on no news catalyst:

At the same time, short-interest has collapsed to its lowest since 2011, removing the possibility that these moves are a forced short squeeze:

So what is driving this utter panic-buying momentum?

A clue may be found in the options markets, as @TESLACharts shows below, somebody has been buying extremely out-of-the-money call options on the most expensive carmaker in the world in size…

A second clue occurred today with TSLA shares surging twice intraday…

And at those exact times, "someone" was buying TSLA 'lottery tickets' in size…

The well-timed purchase of these deep-OTM calls saw prices rise from 50c to $4.25 in minutes – quite a profit! Meanwhile, TSLA's market gap rose by $16 billion in minutes on new news, propelling it past Home Depot and now less than $100BN behind WalMart market cap.

And while the delta of these calls is low (not big enough to have a direct impact on the underlying perhaps at the margin), the aggressive call buying appears to be a "messaging" effect that triggers a "virtuous" buying cycle as algos pick up on the skew in options volume and bid the underlying on the basis that "someone knows something."

The question is – who is buying these lottery tickets in size and who in the world gets to benefit most from the TSLA share price being at these incredibly elevated levels?


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!