TSLA Sees Over 14,000 July 320 Puts Traded—56.7% Bought, Implied Volatility Drops 3.4%
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Record Put Activity with 14,127 Contracts—5.2% of Total Options Volume
By 10:30 AM, Tesla’s July 3, 2025 $320 put option (TSLA 320 Put) had surged to the top of the options chain, posting 14,127 contracts in volume—5.2% of TSLA’s total options flow for the session. With the underlying stock down $2.70, or 0.83%, to $320.93, this single strike attracted both professional and retail traders seeking downside exposure or potential protection.
56.7% of Puts Bought Despite Bearish Tilt—Retail Drives the Surge
Diving deeper into order flow, 56.7% of these puts were classified as bought versus 43.3% sold, indicating that buyers, not sellers, are leading the charge on this contract. Interestingly, the activity skews heavily toward retail participants: 86% of the trades were by small accounts, while just 14% were from large or institutional traders. This composition often signals either fresh speculative plays or a wave of smaller traders seeking to hedge, but definitive insight into whether these are new or closing positions will emerge after open interest updates tomorrow.
Implied Volatility Slides 3.4%—Traders Pay Lower Premiums on the Move
Notably, implied volatility (IV) for this option cooled to 55.9—down 3.4% from the previous day’s close (57.9), making puts less expensive as demand rises. The IV trended within a range for the session: opening at 56.4, dipping as low as 54.0, peaking at 59.2, and settling most recently at 55.0. This downward IV drift alongside heavy put buying suggests traders are positioning for a move but not expecting a volatility spike—often a nuanced, more tactical play.
Trade Details: Pricing Dynamics Highlight Tactical Moves
| Trade Detail | Value |
|---|---|
| VWAP (Average Trade Price) | $8.24 |
| Session High Price | $9.60 |
| Session Low Price | $6.90 |
| Previous Close (Option) | $7.70 |
| Opening Trade Price | $9.10 |
| Last Trade Price | $8.25 |
Price action shows buyers were willing to pay up at the open ($9.10) and on early strength ($9.60 high), but as the session progressed and IV dipped, the option settled back near its VWAP of $8.24—demonstrating traders’ sensitivity to both stock movement and option pricing.
Key Takeaway: Mixed Signals Leave Room for Speculation
Today’s spike in put volume, with most contracts bought and volatility softening, presents a layered narrative: retail traders are bracing for potential weakness or protecting recent gains, while cooling IV suggests the broader market is not panicking. Open interest data, set to update tomorrow, will reveal whether these positions represent new speculative bets or traders cashing in ahead of key Tesla milestones.
For traders, these shifts serve as a reminder: unusual options activity, especially in highly watched stocks like Tesla, often signals growing uncertainty—but can also reflect strategic repositioning as the market digests new data. Is this the start of a bigger move, or simply prudent hedging? The next update may hold the answer.
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