TSLA Surges 4.68% as Nov-28-25 $420 Calls See 7,386 Contracts Traded—Is Volatility Cooling a Bullish Signal?
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Massive $420 Call Volume Accounts for Nearly 10% of All TSLA Option Activity
Tesla’s stock is on the move this morning, rallying 4.68% to $409.39, but what really stands out is the activity in the Nov-28-25 $420 call options. By 09:54 AM, this single contract had seen 7,386 contracts change hands—representing a whopping 9.9% of total options volume for the session.
The surge in volume caught the attention of many options watchers. The trade prices for these calls ranged from $3.45 to $5.50, with a volume-weighted average price (VWAP) of $4.62. The last trade printed at $4.80, marking a solid gain from the previous day’s close of $2.27.
| TSLA Key Option Stats (as of 09:54 AM) | Value |
|---|---|
| Most Active Contract | Nov-28-25 $420 Call |
| Contract Volume | 7,386 |
| % of Total TSLA Option Volume | 9.9% |
| Last Trade Price | $4.80 |
| VWAP (Volume-Weighted Avg. Price) | $4.62 |
| Open Interest (prior session) | 14,313 (+1,925) |
| Stock Price | $409.39 (+$18.30, +4.68%) |
Implied Volatility Drops Over 10%—Sign of Waning Fear or a Calm Before the Storm?
Perhaps even more telling than volume, the contract’s implied volatility (IV) fell from 55.1% to a VWAP of 49.3%, a drop of 10.4% in a single session. IV ranged from an early session low of 47.5% to a high of 51.4%, with the last quote at 48.9%.
This significant decrease in IV could mean that the options market is pricing in less near-term risk—or it may be a sign that some traders believe today’s rally is part of a larger, steadier move upward, not a one-off spike.
Technical Indicators and Trade Breakdown Suggest Mild Bullish Lean
The breakdown of order flow shows 48.4% of the $420 calls were bought and 51.6% were sold, suggesting a roughly balanced tussle between bullish and bearish sentiment. Notably, retail traders drove the action, accounting for 78% of volume, while larger professional players were just 22% of trades.
With TSLA’s stock breaking above $409 and its call options showing heavy activity on the $420 strike, technical momentum looks bullish in the short term. While we can't confirm if these contracts are new positions or the closing of existing bets until open interest is updated tomorrow, the uptick in prior day open interest (+1,925 contracts) points to increased engagement at this level.
| IV and Order Flow Summary | Value |
|---|---|
| Previous Close IV | 55.1% |
| VWAP IV Today | 49.3% |
| Last Quoted IV | 48.9% |
| Order Flow Bought/Sold | 48.4% / 51.6% |
| Large/Pro Trade % | 22% |
| Retail Trade % | 78% |
Takeaway: Option Activity Signals Cautious Optimism—But What Comes Next?
What does all this mean for TSLA traders? With heavy call activity clustered just above the current price, implied volatility cooling off, and technical momentum to the upside, there’s a whiff of cautious optimism. But since most of today’s trades are retail-sized, and IV is dropping, traders should ask themselves: are institutions waiting for more confirmation, or are retail investors getting ahead of the move?
Tomorrow’s open interest update will provide clearer clues about whether new bullish bets are stacking up. For now, today’s data puts a spotlight on the $420 strike—making it one to watch as Tesla heads toward the next major price level.
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