Option Focus | Tesla’s Largest Block Trade Is a $668K Put Sale at 350, Signaling Bullish Premium Collection While a Short Call Caps Near-Term Upside

Option Witch
Yesterday

Tesla closed at 380.68 USD, up 0.51%.

Block activity highlighted a large put sale at the 350 strike expiring in October 2026, the session’s biggest trade, alongside a slightly out-of-the-money short call in the near term. The flow leans bullish on balance, though the short call suggests upside may be capped near 382.50.

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Options Indicators

Tesla’s implied volatility is 44.56%, and its IV percentile is 8.76%, which places current option pricing in the low end of its recent range. In other words, volatility is relatively subdued and Tesla options appear cheaply priced rather than expensive, even though the IV/HV ratio of 1.50 shows implied volatility is still running above realized volatility and the market is assigning a meaningful premium to forward uncertainty.

The Call/Put volume ratio is 1.68.

Large Trades

A PUT sale worth $668,400 was the largest displayed trade, with 1,200 contracts sold at the 350.00 strike expiring on 2026-10-30. With TSLA referenced at 380.68, this put was out of the money, making it a moderately bullish income-oriented position. The seller is effectively expressing confidence that TSLA can stay above 350.00 into expiration, allowing the option to decay while collecting premium, while also signaling willingness to take assignment at a lower effective entry level if the stock declines.

A CALL sale worth $284,600 was the other displayed large trade, involving 1,074 contracts sold at the 382.50 strike expiring on 2026-10-07. With the stock at 380.68, this call was also out of the money, but only slightly, which gives the trade a mildly bearish to neutral tone. Strategically, this type of short call sale typically reflects premium collection with an expectation that upside will remain capped near the strike over the very short term, suggesting limited conviction in an immediate breakout above 382.50.

Overall, the large-trade flow leans bullish on balance. The dominant activity was concentrated in out-of-the-money put selling, which usually reflects a willingness to own shares lower or a view that downside risk is manageable, while the smaller short-call activity points more to near-term upside capping than outright aggressive bearishness. Taken together, the block flow suggests investors are broadly constructive on TSLA, expecting support to hold and weakness to be contained, even if near-term upside may be somewhat restrained.

Strategy Reference

For a low assignment probability put sale, consider the 330.00 strike in the same expiration window, or a 340/330 bull put spread to reduce margin and defined risk if downside protection is preferred.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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