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Tesla Reports Strong Fundamental Earnings
On Wednesday, October 19th, Tesla reported its Q3’22 earnings. Overall, Tesla showed substantial progress, with more than 50% revenue growth and nearly 70% earnings growth, as the company delivered a record number of vehicles in the third quarter.
However, even though the earnings were impressive, Tesla’s (TSLA) shares dropped by more than 6% because their results fell short of some analyst estimates. Specifically, on Thursday, the stock traded close to $200 until it found price support. At SpotGamma, we believe Tesla bounced off this level because the stock found support at the SpotGamma Hedge Wall of $200.
Put Options Supported Tesla at $200
What caused a temporary price floor for Tesla? We believe it was the options complex, as indicated by the SpotGamma Hedge Wall support located at $200. At SpotGamma, we identify key option levels in stocks and indexes by analyzing the areas with the largest concentrations of option gamma and applying our proprietary algorithms. In this case, Tesla had significant buying pressure at $200, as shown below by our Equity Hub model.
(SpotGamma Equity Hub Model)
What’s Next
At SpotGamma, we monitor the entire options market daily and update our metrics for our subscribers every morning. If the Hedge Wall moves higher, we expect to see continued upside strength for the stock. If the Hedge Wall moves lower, we could see another move downward.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image and article originally from www.nasdaq.com. Read the original article here.