TSLA Options Signal $500 Call Dominance as Robotaxi Hype Fuels 4.9% Rally – Here’s How to Play the Breakout

• TSLA surges 4.9% to $481.76 on robotaxi testing without safety monitors
• Options market shows 0.83 call/put open interest imbalance, with $500 calls dominating
• Block trades hint at institutional bets on AI-driven valuation expansion

Tesla’s stock is dancing like a robotaxi on autopilot today—up 4.9% to a near-year high of $481.76. But what’s really cooking under the hood? The options market is screaming bullish while whispering caution. Let’s break down the numbers, the news, and the smart money’s moves to see where the rubber meets the road.

Bullish Sentiment on Steroids: OTM Calls vs Puts

The options chain tells a clear story: traders are all-in on the upside. For this Friday’s expiry (Dec 19), the $500 call (TSLA20251219C500) leads with 107,920 open contracts—nearly double the next strike. That’s not just noise; it’s a bet that TSLA will punch through $500 before the weekend. Meanwhile, puts are clustered at $170 (37,820 OI) and $400 (24,384 OI), suggesting some hedging against a potential pullback.

But here’s the twist: the put/call ratio for open interest is 0.83, meaning calls dominate. That’s classic “rally fuel” territory. Think of it like a car with a turbocharger—TSLA’s already moving fast, and the options market is betting it’ll accelerate.

Block trades add another layer. The $3.8M bet on TSLA20250919C380 (a call expiring in September) and the $1.9M put trade on TSLA20260116P410 hint at big players positioning for long-term AI-driven gains. These aren’t day traders—they’re mapping out Tesla’s future.

News That’s Driving the Narrative

Elon Musk’s robotaxi demo without safety monitors is the spark here. The stock’s 4.9% jump isn’t just about today—it’s about 2026. Analysts like Wedbush’s Dan Ives are calling it a “monster year,” with Cybercab production and robotaxi expansion as catalysts. That’s why the $500 call is so popular: it’s a price target baked into the hype.

But don’t ignore the bear case. Tesla’s Q4 earnings could be a speed bump. Analysts warn of a potential net loss due to margin compression and rising R&D costs. Morgan Stanley’s $425 price target (vs. today’s $477) reflects this tension. The stock’s future hinges on whether robotaxi adoption outpaces financial headwinds.

Trade Ideas: Calls, Puts, and Precision Entries

For options traders, the $500 call (TSLA20251219C500) is a no-brainer if you believe in the robotaxi narrative. With 107,920 contracts in play, it’s the most liquid and directional bet. If you’re more cautious, a bear put spread using the $260 (TSLA20251226P260) and $360 (TSLA20251226P360) strikes could cap losses while hedging against a dip.

Stock traders should watch two levels:

• Entry: Consider buying near $429.73 (30D support) if TSLA pulls back to that zone.
• Target: Aim for $481.76 (intraday high) or even $500 (call strike) if the robotaxi euphoria continues.
• Stop: Below $427.82 (middle Bollinger Band) would signal a breakdown in momentum.

Volatility on the Horizon

Tesla’s story isn’t just about cars anymore—it’s about AI and robotics. The options market is pricing in a future where Optimus and FSD drive most of the value. That’s why the $500 call isn’t just a strike price; it’s a psychological milestone.

But don’t get carried away. The 200D moving average at $315.53 is a long-term floor, and the RSI at 80.94 warns of overbought conditions. This isn’t a straight-line rally—it’s a rollercoaster.

Bottom line: If you’re bullish on Tesla’s AI-driven future, the $500 call and a long stock position near support offer the best setup. But keep a seatbelt handy—this ride could get bumpy before it gets to $500.