From Financial Modeling Prep: 2024-12-17 10:28:05

Tesla’s stock has surged 116.7% since Q3 2024 earnings, sparking debates on its driving forces. Analysts question if the rally is fundamentally sound or influenced by options market dynamics like gamma squeeze.

Options market activity, especially call options, is seen as a major driver of Tesla’s stock movement post-earnings and election results.

Historically, Tesla’s put option volumes have exceeded call options, but recent demand for calls signals a sentiment shift impacting the stock’s performance.

Tesla’s surge may be unsustainable due to rising option trading costs, potentially deterring investors and raising doubts about the rally’s longevity.

Tesla’s Q3 results were slightly above expectations, but alone do not justify the massive stock surge. Strong deliveries and market expansion contribute to positive sentiment.

Investors should monitor Tesla’s stock cautiously, considering both its fundamental performance and the impact of options market dynamics on its price movements. Volatility remains high, leading to potential significant price swings.



Read more at Financial Modeling Prep:: Tesla’s Stock Surge: Gamma Squeeze or Fundamental …