TSLA’s Most Traded Option: Over 20,000 Contracts in the October 2025 $440 Put—Implied Volatility Slides 6%
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October 2025 $440 Put Commands Attention with 20,597 Contracts Traded
Tesla (TSLA) captured options market focus today, with the October 3, 2025 $440 put seeing an extraordinary 20,597 contracts traded by 11:07 AM—representing 6.2% of all TSLA options volume so far in the session. This sharp spike in activity stands out not only for its sheer scale, but also for its skew toward smaller, retail traders: 81% of trades came from non-institutional players.
| Option Contract | Volume | % of TSLA Option Volume | VWAP Price | % Bought | % Sold | % Retail | % Large/Pro |
|---|---|---|---|---|---|---|---|
| Oct-03-25 440 Put | 20,597 | 6.2% | 11.40 | 64.8% | 35.2% | 81% | 19% |
Implied Volatility Drops by 6%—Traders Adjust Expectations
The VWAP implied volatility (VWIV) on this put sits at 49.8, a 6% decline from yesterday’s close at 53.0. Volatility throughout the session ranged from 48.5 to 53.2 before the last snapshot settled at 49.3. This falling implied volatility suggests the market is dialing back its expectations for outsized moves in TSLA, even as retail traders pile into downside protection or speculative positions.
| Prev Close IV | Open IV | Low IV | High IV | Last IV | Change from Prev IV |
|---|---|---|---|---|---|
| 53.0 | 52.0 | 48.5 | 53.2 | 49.3 | -6.0% |
Retail Activity Dominates as 64.8% of Contracts Bought—Potential for Defensive Positioning?
The majority of trades (64.8%) in this put were executed on the buy side, suggesting either downside hedging or speculation that TSLA might slip further from its current $439.02 price. Retail activity dominates, with just 19% of trades attributed to larger, professional participants.
This distribution could mean individual traders are seeking portfolio insurance or speculative leverage amid uncertainty, even as overall market sentiment—reflected in declining implied volatility—becomes more subdued.
Open Interest and Intraday Flows—Next-Day Update Required
It’s important to note that while 20,597 contracts have traded today, open interest for this put—based on pre-market figures—was at 5,698, having risen by 2,799 contracts from the previous day. The true impact of today’s massive volume won’t be clear until open interest updates with the next settlement, leaving some uncertainty about whether positions are being newly established or unwound.
What to Watch Next: Are Retail Traders Getting Defensive, or Is This a Play for Volatility?
With retail traders driving activity and implied volatility drifting lower, the data suggests that individual investors may be getting more defensive or seeking leveraged exposure with the $440 puts. If TSLA’s stock holds above this level or volatility continues to drop, many of these contracts could lose value quickly.
While we can’t know for sure whether today’s buyers are betting on a big TSLA decline or hedging existing stakes, the size and tilt of this activity make it worth watching for tomorrow’s open interest changes—and for signs of a shifting sentiment in the broader electric vehicle sector.
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