Bullish options trading in Meta and Tesla ahead of their earnings reports reflects investor confidence boosted by a rally in SpaceX shares.
01Summary
- 01More than 30,000 Meta calls traded at or above the ask versus under 17,000 puts on Wednesday, Cboe LiveVol data show.
- 02Meta's put/call ratio of open contracts has stayed near 0.5 since March, meaning two calls open for every put.
- 03Almost $22 million of Meta trades were bought with bullish intent on Wednesday, compared to $7.5 million bearish.
- 04Market-makers price a 6.5% swing for Meta after earnings, below the 9% average over the past four quarters.
- 05In Tesla, 315,000 calls traded against 65,000 puts bought, with call-buying premiums exceeding $200 million versus $84 million in puts.
02Why it matters
Options activity suggests traders expect significant share price moves from Meta and Tesla after their earnings reports, affecting portfolios tied to these tech giants.
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