Tesla Gamma EOD Update

13 בדצמ׳ 2021

Tesla ended the day just below the level where dealer gamma turns net negative and volatility is likely to increase. At 950, just below the current price there is a major put barrier. One can assume that dealers are fully hedged by now and should the price trend upwards tomorrow, then those hedges need to get unwinded, which could jumpstart a rally. On the other hand side: If Tesla falls below this level, dealers have to increase their hedges fast by selling futures, which would feed into the sell-off. Tomorrow is certainly going to be an interesting day for traders. Good luck!