Tesla, Inc. closed at USD 367.81, down 0.10%.

A massive $31.43 million long straddle at the $370 strike expiring in 2027 overwhelmed the options tape, signaling expectations for a major future price swing without a definitive directional bet. Meanwhile, a comparatively modest $85,300 put purchase at $350 for 2026 added a note of downside caution. The overall tone is cautiously bullish, with the dominant flow centered on long volatility rather than a clean upside conviction.

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Options Indicators

TSLA’s implied volatility stands at 46.16%, while its IV percentile is just 13.55%, indicating that although the absolute IV level is moderate, it sits near the low end of its own historical range. Combined with an IV/HV ratio of 0.89, this suggests the options market is pricing volatility somewhat below realized volatility, and overall TSLA options appear cheaply priced with volatility on the low side rather than elevated.

The Call/Put volume ratio is 1.60.

Large Trades

A volatility-focused combination worth $31.43 million dominated the tape, consisting of a long 370.0 call and a long 370.0 put expiring on 2027-09-17. With both legs purchased at the same strike and expiration, this is effectively a long straddle rather than a synthetic structure or spread, and the position reflects a net debit of $31.43 million. Relative to the $367.81 reference stock price, the 370.0 call was out-of-the-money while the 370.0 put was in-the-money, giving the trade immediate sensitivity on both sides of the stock. Strategically, this is a premium-paying volatility bet that signals expectations for a large future move in TSLA, without committing to a purely bullish or bearish directional view at entry.

A put buy worth $85,300 was the other displayed large trade, with 1,895 contracts of the 350.0 put purchased for expiration on 2026-09-11. With TSLA referenced at $367.81, the strike sat out-of-the-money at the time of execution, making this a bearish downside position or protective hedge targeting a move lower over the coming year. The trade is relatively small compared with the dominant straddle, but its structure clearly leans negative by expressing willingness to pay premium for downside exposure below 350.0. Overall, the bulk-order flow leans modestly bullish, but the tone is best described as cautiously constructive rather than aggressively bullish: the largest trade was a major long-volatility position that does not require a specific direction, while the remaining notable activity still included downside put buying, suggesting traders see room for upside but remain attentive to meaningful price swings and downside risk.

Strategy Reference

With IV percentile near the low end at 13.55%, a low-probability premium-selling approach could target a short put at the 250.0 strike for 2026, while traders who prefer not to post excessive margin may use a call credit spread such as selling the 450.0 call and buying the 500.0 call to define risk while capitalizing on the subdued implied volatility environment.