Traders hedge Tesla stock with a $550 million put bet as implied volatility hits the 78th percentile before July 22 results.
Ahead of Tesla’s July 22 earnings, the options market has placed a roughly $550 million bet against TSLA stock, signaling heightened bearish sentiment. Implied volatility has surged to the 78th percentile over the past year, reflecting expectations of a large price swing.
The put/call volume ratio climbed from 0.54 to 0.74 in two weeks, while Chaikin Money Flow turned negative, indicating institutional selling pressure. Despite this, Wall Street analysts have continued raising price targets, though filings show institutions added a net 226 million shares last quarter.
Market participants appear braced for downside risk, with hedging activity accelerating as earnings approach.