Following SpaceX's earnings report, traders are showing increased confidence in Meta and Tesla, with options trading reflecting a bullish outlook. For Meta, over 30,000 call options were traded at or above the ask price, compared to under 17,000 puts, indicating strong buying interest.
The put/call ratio for Meta stands at 0.5, suggesting a preference for calls, and nearly $22 million in trades were executed with bullish intent on Wednesday. Market-makers are anticipating a 6.5% price swing for Meta post-earnings, slightly below its average of 9% over the past year.
In Tesla's case, while the sentiment is also leaning bullish, it is less pronounced, with a put/call ratio of 0.75. A total of 520,000 contracts were traded, with 315,000 being calls. Despite some call-selling activity, the overall spending on call options exceeded that on puts, amounting to over $200 million for calls versus $84 million for puts.
Market-makers expect a 5.5% swing for Tesla after its earnings report, which is higher than its recent average of 3.5%. The most actively traded contracts for Tesla were the 385 and 400-strike calls, with buyers favoring the 400-strike options