Thread by @LostFundamental

$TSLA – Can we all stop debating the fundamentals. It is all one big game of punting 0DE options creating tremendous spikes of buying pressure. A look 8-Nov-24 where Zero Day call options equaled 166% of the stocks volume and total call options volume equaled 321%! 1/10

$TSLA – The above chart shows how as the share price increases the volume progressively moved to higher and higher Zero Day strikes after a massive push with the $300 and $305 at the open and the $317.5 and $320 dominating the mid-day flow. 2/10

$TSLA – Every major leg up in the stock was on the back of heavy options volume. Also note increased activity in the minutes post a large jump as retail presumably chase a move that has already happened (Theta decay is fast for Zero Day so you can’t easily hold for hours). 3/10

$TSLA – The Top 10 options alone were 126% of the stocks volume and $ Delta ($ Notional volume x Option Delta) was 70% of the stocks volume. Looking at $ Net Delta (Call-Put) it was $61bn vs. $47bn stock volume traded or 131%. The $ Delta is $ economic exposure to the stock. 4/10

$TSLA – The $320 call was almost $10bn of $ Delta or over 20% of the $ stock volume and the $310 and $315 each traded $6bn of Delta. 5/10

$TSLA - The stock (top) vs. options (bottom) volume during the first hour. Note the 2.4mn options volume from the Top 10 Zero Day options during the first two minutes of the day where the stock traded 1mn shares then kickstarting the 2-3% move up in minutes. 6/10

$TSLA – As the price increased fast > $312.5 strikes came in play with little Open Interest, but it did not hold back the Contract Volume as the OI was churned 30-40x in hours vs 0.3x 1-year average. Contract Volume traded 4x the 1-year average. 7/10

$TSLA – Looking at the first 6 minutes of trading volume in the Zero Day options, the $300 strike traded 98% of Open Interest and the $305 strike 176% also equivalent to more than 100% of the volume in the underlying stock! 8/10

$TSLA – The whole day by minute for the stock & the top 10 Zero Day options – identical volume profiles. The lower chart (black line) shows the 250% options volume % of stock volume for the first few minutes, and it never does it go below 100% cumulatively during the day. 9/10

$TSLA – Last week while the Open Interest did not change much overall, the Delta adjusted OI alone of $240-$350 strikes of the 0DE increased from 0.15 to 0.85 with a doubling on 8-Nov equal to a 12mn underlying shares increase (Delta hedging) or almost 10% of volume. 10/10 END.