Tesla Inc TSLA shares witnessed significant volatility last week with the stock trading between $191.61 and $212.79 before settling down at $196.89.
Last week, major Wall Street indices closed in the red as market participants weighed in mixed signals pertaining to inflation. Hawkish comments from Federal Reserve officials, too, impacted sentiments. The SPDR S&P 500 ETF Trust SPY lost 0.43% while the Invesco QQQ Trust Series 1 QQQ fell 1.23%.
Investors and traders will be keenly watching out for the consumer price index report scheduled to be released on Tuesday.
Also Read: Everything You Need To Know About Tesla Stock
Crucial Levels: Meanwhile, Tesla bears seem to be guarding the $200-mark for the second week in a row. Options expiring on Friday indicate that the maximum open interest build-up on the Call side can be seen at the $200 strike with over 38,900 contracts.
This indicates professional traders, who prefer to write options and collect premiums over buying them, are betting the stock will close at or below this level as on Friday.
On the downside, the $180 level appears to be a stiff short-term resistance as the level is witnessing the high open interest build-up among out-of-the-money Put options.
It is noteworthy that open interest levels only provide a fair idea of the markets’ expectations and any major corporate event or macro news could lead to a significant movement in the stock price and a subsequent shift in open interest levels.
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