Tesla Rises 3.87% Amid Cathie Wood Buying Spree—Is Earnings Momentum Building?

• Tesla shares surge to $322.81, up $12.03 from yesterday’s close
• ARK Invest’s Cathie Wood buys $36M in TSLA ahead of Q2 earnings
• Bearish analyst warns of valuation risks amid $180 downside target

Tesla’s intraday rally breaks through $322 resistance, fueled by strategic buying and mixed signals from sector peers. The stock trades 3.87% higher on robust turnover, hitting a session high of $322.95 and low of $312.63.

Cathie Wood’s Bullish Bet and Earnings Anticipation Drive Rally
Tesla’s price surge is directly tied to ARK Invest’s Cathie Wood purchasing $36 million in shares ahead of Q2 earnings. This institutional buying signal contrasts with bearish analyst warnings about overvaluation and declining deliveries. The stock’s 635.5x dynamic PE ratio highlights investor optimism despite fundamental headwinds, suggesting short-term momentum may outweigh near-term risks.

Bullish Technicals and High-Leverage Options to Watch
Technical Indicators:
• 200-day average: $316.85 (near current price)
• RSI: 36.42 (oversold, signaling potential rebound)
• Bollinger Bands: Price at upper band ($345.12) suggests short-term bullishness.

Trade Setup: Bulls aim to hold above $320 support, with $330 resistance key for sustained momentum. The 30-day $325–$327 range remains critical. For leverage, consider TSLA20250725C320 (call) or TSLA20250725P310 (put) contracts.

Top Picks:
1. TSLA20250725C320 (Call): Strike $320, expires 2025-07-25
• Delta: 0.548 | Gamma: 0.0116 | Theta: -1.403
• Leverage: 21.85% | IV: 63.96%
• High liquidity ($15.2M turnover) with strong gamma for price sensitivity. A $330 breakout targets 15% upside.

2. TSLA20250725P310 (Put): Strike $310, expires 螃2025-07-25
• Delta: -0.334 | Gamma: 0.0114 | Theta: -0.087
• Leverage: 41.27% | IV: 62.56%
• Captures downside protection if earnings miss triggers a drop below $315. High volume ($11.4M) ensures liquidity.

Action Insight: Aggressive bulls target TSLA20250725C320 above $325; cautious traders pair it with P310 for volatility hedging.

Backtest Tesla Stock Performance
Following a 4% intraday increase, Tesla (TSLA) experienced significant gains, with a strategy that capitalized on this surge yielding impressive results. The backtest reveals a 192.86% strategy return, vastly outperforming the benchmark return of 85.48%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.36, the strategy demonstrated robust risk management and profitability.

Watch Earnings and $320 Support—Tesla’s Momentum Hangs in the Balance
Tesla’s rally faces critical tests ahead. Bulls must defend $320 while breaking $330 to sustain momentum, but bearish risks linger at $180. Sector leader GM’s 1.22% gain highlights EV industry resilience, yet Tesla’s valuation debate remains unresolved. Investors should monitor earnings reactions and $320 support—failure here could trigger a rotation into cheaper sector peers. Stay nimble: earnings results on Thursday will determine if this rally is substance or speculation.