1. Key Levels Identified:
* Highest Positive NETGEX (Call Resistance): $400
* Represents a strong resistance level due to the accumulation of call options. If TSLA approaches this level, market maker hedging could slow upward momentum or cause consolidation.
* Second Call Wall: $420
* Indicates additional resistance and a potential target for bullish momentum if $400 is breached.
* HVL (Hedging Volatility Level): $347.50
* A critical support area where market makers adjust hedging to neutralize exposure. Price movements near this level could lead to temporary stabilization.
* PUT Walls:
* 3rd PUT Wall: $340 (-1.37% Gamma Exposure)
* A moderate support level with notable hedging activity.
* 2nd PUT Wall: $330
* Stronger support, likely to hold unless broader market sentiment turns bearish.
2. Price Action:
* TSLA is trading around $403, testing the resistance at the $400 level. A break above $400 could push the price towards $420, while a rejection might result in a retracement towards $390 or lower.
Technical Indicators Analysis:
1. MACD:
* The MACD line is showing bullish momentum, with the histogram suggesting potential upside. However, watch for any divergence near resistance levels.
2. Stochastic RSI:
* Currently overbought, signaling potential short-term exhaustion. A downward crossover could indicate a pullback.
3. Trendlines:
* An ascending trendline supports the bullish structure, intersecting near $390. A breakdown below this trendline would invalidate the bullish momentum.
Options Strategy Plan:
1. Bullish Scenario:
* If TSLA sustains above $400:
* Call Option Entry: Strike price at $410 or $420, expiration within 1-2 weeks.
* Target: $420.
* Stop-Loss: $395.
2. Bearish Scenario:
* If TSLA rejects $400 and drops below $390:
* Put Option Entry: Strike price at $380 or $370, expiration within 1-2 weeks.
* Target: $370 (next major support zone).
* Stop-Loss: $395.
3. Neutral Strategy:
* If TSLA consolidates between $390 and $400:
* Iron Condor Strategy:
* Sell a call at $410 and a put at $380.
* Buy a call at $420 and a put at $370 to limit risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Best for directional trades based on breakouts or rejections from key gamma levels.
* Longer Expiry (2-3 weeks): Ideal for capturing momentum plays or wider ranges.
Summary of Gamma Insights:
* The $400 level is pivotal for TSLA. A breakout above this level aligns with gamma positioning that supports upward momentum.
* Support levels around $390 and $347.50 provide clear areas for stop-loss placement or potential reversals.
* Traders can use gamma levels to anticipate volatility spikes and align their strategies accordingly.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Always conduct your own research and risk management before executing trades.
* Highest Positive NETGEX (Call Resistance): $400
* Represents a strong resistance level due to the accumulation of call options. If TSLA approaches this level, market maker hedging could slow upward momentum or cause consolidation.
* Second Call Wall: $420
* Indicates additional resistance and a potential target for bullish momentum if $400 is breached.
* HVL (Hedging Volatility Level): $347.50
* A critical support area where market makers adjust hedging to neutralize exposure. Price movements near this level could lead to temporary stabilization.
* PUT Walls:
* 3rd PUT Wall: $340 (-1.37% Gamma Exposure)
* A moderate support level with notable hedging activity.
* 2nd PUT Wall: $330
* Stronger support, likely to hold unless broader market sentiment turns bearish.
2. Price Action:
* TSLA is trading around $403, testing the resistance at the $400 level. A break above $400 could push the price towards $420, while a rejection might result in a retracement towards $390 or lower.
Technical Indicators Analysis:
1. MACD:
* The MACD line is showing bullish momentum, with the histogram suggesting potential upside. However, watch for any divergence near resistance levels.
2. Stochastic RSI:
* Currently overbought, signaling potential short-term exhaustion. A downward crossover could indicate a pullback.
3. Trendlines:
* An ascending trendline supports the bullish structure, intersecting near $390. A breakdown below this trendline would invalidate the bullish momentum.
Options Strategy Plan:
1. Bullish Scenario:
* If TSLA sustains above $400:
* Call Option Entry: Strike price at $410 or $420, expiration within 1-2 weeks.
* Target: $420.
* Stop-Loss: $395.
2. Bearish Scenario:
* If TSLA rejects $400 and drops below $390:
* Put Option Entry: Strike price at $380 or $370, expiration within 1-2 weeks.
* Target: $370 (next major support zone).
* Stop-Loss: $395.
3. Neutral Strategy:
* If TSLA consolidates between $390 and $400:
* Iron Condor Strategy:
* Sell a call at $410 and a put at $380.
* Buy a call at $420 and a put at $370 to limit risk.
Recommendation for Expiration Date:
* Short-Term Expiry (1-2 weeks): Best for directional trades based on breakouts or rejections from key gamma levels.
* Longer Expiry (2-3 weeks): Ideal for capturing momentum plays or wider ranges.
Summary of Gamma Insights:
* The $400 level is pivotal for TSLA. A breakout above this level aligns with gamma positioning that supports upward momentum.
* Support levels around $390 and $347.50 provide clear areas for stop-loss placement or potential reversals.
* Traders can use gamma levels to anticipate volatility spikes and align their strategies accordingly.
Disclaimer:
This analysis is for educational purposes only and should not be considered financial advice. Always conduct your own research and risk management before executing trades.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.