TSLA Options Signal $490 Bullish Bias: How to Play the Volatility Playbook

• TSLA surges 1.9% to $447.94 amid record Q3 revenue and $5B buyback
• Options data shows 21,360 open calls at $490 strike vs 43,887 puts at $160
• Block trades hint at big money positioning ahead of Q4 earnings

Here's what I'm seeing: TSLA's options market is screaming 'bullish' with a clear price target in sight. The stock is perched above key moving averages while call options at the $490 level are drawing massive attention. But this isn't just a one-way bet - let's unpack the full story.

The $490 Call Wall and Institutional Chess Moves

If you look at this Friday's options chain, the $490 call has 21,360 open contracts - more than double the next strike. That's not random. It's a price level where big money is likely setting up for a potential breakout. The MACD histogram at 4.24 and RSI at 64.67 suggest momentum is building.

But don't ignore the puts. The $160 strike has 43,887 open puts - a staggering number for such an OTM strike. This isn't just hedging; it's a bet that something catastrophic could happen. The block trades tell an interesting story too: 1,200 contracts of the TSLA20250919C380 traded for $3.8M, suggesting big players are positioning for a Q4 rally.

News That Could Make or Break This Setup

Tesla's Q3 beat was impressive, but the Cybertruck delay and EU fine add complexity. The $1.2B Solar Roof acquisition is bullish for long-term growth, but short-term volatility is inevitable. JPMorgan's $350 price target feels conservative given the 50% battery cost cuts and 10 new Asian factories in the works.

3 Concrete Ways to Play This Move

1. Call Ladder: Buy the TSLA20251212C490 (this Friday's $490 call) if price breaks above $452.39. Target $520, stop below $435.70.
2. Stock Entry: Consider buying TSLA near $431.27 (30D support) with a $463.26 (Bollinger Upper) target.
3. Bearish Hedge: Buy the TSLA20251212P420 (this Friday's $420 put) if price drops below $429.73. This protects against the $200M EU fine risk.

Volatility on the Horizon

The next 72 hours will be critical. If TSLA holds above $435.70, the $490 call wall could ignite a parabolic move. But watch for short sellers to pounce if the stock stumbles below $423.57 (middle Bollinger Band). This is a high-conviction trade with clear entry/exit points - just don't let emotions override your plan.