TSLA Options Signal $500 Bullish Bias: How to Play the Breakout with Calls and Puts

• TSLA surges 1.6% to $489.05, with RSI at 67.9 and MACD above signal line, hinting at momentum.
• Options frenzy at $500 call (35,948 OI) and $190 put (33,598 OI) strikes, showing heavy conviction on both sides.
• Block trades like TSLA20260116P410 ($410 put) suggest big players are hedging or shorting ahead of Q1 2026.

Here’s the takeaway: TSLA’s options and technicals are screaming bullish—but with a twist. The stock is perched near key resistance at $497.09 (Bollinger Upper Band), and the call/put OI ratio (0.79) favors buyers. If it breaks through, the $500 call wall could fuel a rally. But don’t ignore the $190 put OI—it’s a red flag for volatility.The Options Playbook: Where Smart Money Is BettingBullish calls are stacking up at $500 and $520. The TSLA20251226C500 call (expiring this Friday) has 35,948 open contracts, while the TSLA20260102C500 (next Friday) has 10,075. That’s not random—it’s a signal. Traders are pricing in a breakout above $498.82 (intraday high) to test the $500 level.But the puts aren’t sleeping. The $190 put (33,598 OI) and $250 put (23,629 OI) next week suggest some hedging or shorting activity. The TSLA20260116P410 block trade (400 contracts at $410) is a big bet on downside risk, possibly tied to the EU fine or short-term profit-taking.The key takeaway: This is a two-way street. If TSLA holds above $487.63 (intraday low), the bulls control. If it dips below $481.2 (previous close), the puts could dominate.News That Could Make or Break This Trade

Tesla’s recent headlines are a mixed bag. The Q4 earnings beat ($28.5B revenue) and Cybertruck production ramp are tailwinds. The CATL battery deal and next-gen battery tech also lower costs, which should boost margins. But the $1.2B EU fine and short-interest spike to 5.2% add friction.

Here’s the rub: Retail traders love the long-term story, but institutional players are hedging. The Sarah Smith hire and Texas Gigafactory news should stabilize operations, but the EU fine could delay EU expansion. For now, the stock is pricing in optimism—until the fine’s appeal is resolved.Actionable Trades: Calls, Puts, and Price Levels to WatchFor the bulls: Buy the TSLA20251226C500 call if TSLA breaks $498.82. Target $510 (Bollinger Upper Band) for 10–15% gains. Alternatively, a bull call spread with TSLA20251226C500 and TSLA20251226C520 could cap risk while riding the $500 wall.For the bears: If TSLA dips below $487.63, consider the TSLA20260102P250 put (23,629 OI). It’s a deep strike but could profit if the EU fine or short-interest pressure triggers a pullback.Stock entry: Buy TSLA near $487.63 (intraday low) if it holds. Target $500 first, then $510. Stop-loss below $481.2.Volatility on the Horizon: What’s Next

TSLA’s options and news flow point to a high-stakes week. The $500 call wall and Cybertruck production could push the stock toward $520 by Q1 2026. But the EU fine and short-interest are wild cards.

Final call: This is a high-conviction bullish setup—but with a safety net. Play the $500 call if you’re confident in the breakout. Hedge with the $250 put if you’re wary of the EU drama. Either way, TSLA’s next move will be loud.Key levels to watch:

• Support: $481.2 (previous close), $487.63 (intraday low)
• Resistance: $497.09 (Bollinger Upper), $500 (call wall), $510 (next target)

Remember: Options are a leveraged bet. Use stop-losses and position sizing to protect your capital. The market’s watching the $500 level like a hawk—don’t let it fly past you.