TSLA Leaps 4.28% as Dec-19-25 $500 Call Sees 29,500 Contracts—Bullish Momentum Evident in Options Market

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Tesla’s $500 Calls Dominate Morning Trade with 29,500 Contracts

This morning, Tesla (TSLA) saw its shares surge $19.63 (4.28%), reaching $478.59 by 9:55 AM. The real headline grabber, however, came from the options pit, where the Dec-19-25 $500 call contract traded a staggering 29,500 contracts—making up 8.8% of all TSLA options volume at that point. With prices rallying as high as $5.95, this call option became the single most active instrument on Tesla for the session so far.

Trade Data Underscores Growing Bullish Sentiment

For those looking at the numbers, the volume on this $500 strike dwarfed typical morning flows, suggesting that traders are increasingly betting on—or hedging against—a move above $500 into year-end. The option’s volume and prices paint a vivid picture of risk appetite and near-term optimism:

Technical Indicators Signal Bullish Short-Term Momentum

The volume surge coincides with notable changes in implied volatility (IV). Although the Dec-19-25 $500 call’s IV ended at 48.2—down from yesterday’s 48.8—it ranged from a morning low of 42.1 up to 49.7. This softening of IV, despite surging interest, suggests traders are getting bullish without demanding a large volatility premium—a dynamic that sometimes signals confidence rather than panic-buying.

The option’s price more than doubled from the previous day’s close of $1.68, while VWAP (volume-weighted average price) hit $4.74. Clearly, most trading occurred at elevated prices, reflecting both higher demand and underlying strength in TSLA shares.

Order Flow Tilted Toward Buyers and Retail Investors

Diving deeper, approximately 57.9% of the day’s action was on the buy side, with 62% of trades attributed to small, retail participants versus 38% from larger, professional players. While we can’t yet confirm how much of today’s activity will open or close new positions (that’ll show in open interest tomorrow), the spike in prior open interest (+64,547 contracts overnight) demonstrates the market’s hunger for this strike.

What’s the Takeaway for TSLA Traders?

Tesla’s impressive rally and the spotlight on the $500 call are hard to ignore. With nearly 30,000 contracts traded on this strike in just the first hour—and a strong tilt toward retail buying—investors seem increasingly bullish on the company’s prospects heading into year-end. If the upward price action continues and open interest grows, it may reinforce the case for further gains—or at least elevated volatility as the year draws to a close.

Will TSLA’s rally to $500 become self-fulfilling as bullish sentiment compounds? Keep an eye on tomorrow’s open interest figures for confirmation, and watch the $500 level as a potential psychological magnet.

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