Two large TSLA call option sweeps were detected today, both targeting the $550 strike with an expiration of January 16, 2026. The standout order is the top trade: a 25,005-contract sweep priced at $5.14, totaling roughly $12.9M in premium—a very sizable bet. The reported total daily contract volume for this contract was marked at 27,344 at the time of these trades.
Compared to a 19,879 open interest, this yields a V/OI ratio of ~1.38. This likely means that new money is flowing into the contract rather than simple closing activity. The second sweep adds another 3,000 contracts for $1.8M, reinforcing the similar sentimental activity. Overall, this cluster of trades shows aggressive call buying with volume meaningfully exceeding open interest, suggesting strong conviction for near-term volatility into early 2026.
Volume and Open Interest Data
The TSLA 550C 01/16/2026 contract shows a dramatic surge in trading activity on 12/03/25. Volume exploded to 54,004 contracts, far exceeding the existing open interest of 19,879. This creates a V/OI ratio of roughly 2.7, signaling that the majority of this flow is likely new positioning rather than closing trades. In the days prior, volume was minimal (565–783 contracts), making the sudden spike even more notable.
Despite this massive buying pressure, open interest increased only slightly (+7) from the previous trading session. This may reflect delayed OI reporting or intraday churn, but the sheer size of the volume still indicates aggressive positioning. The contract price also jumped from $3.30 to $5.80, aligning with the surge in demand. Overall, this is a highly unusual activity burst that strongly points toward significant new positioning entering the chain.
Trade Side Distribution
The trade-side distribution for the TSLA 550C 01/16/2026 contract shows that the overwhelming majority of flow—$14.8M, or 73%—executed above the ask. This indicates that highly aggressive buyers were willing to pay a premium to secure positions. Additional positive signals include $1.2M at the ask (6%) and $1.3M at the mid (6%), further supporting a strong buy-side bias.
Only a small portion of trades hit the bid ($2.7M, 13%) or executed below the bid ($432K, 2%), suggesting limited selling pressure. Overall, the distribution highlights an unusually strong demand imbalance favoring buyers, reinforcing the idea that large players are positioning aggressively for movement in TSLA shares.
What’s Happening with TSLA
Tesla reported record Q3 2025 revenue of about 28.1 billion dollars, beating analyst estimates. However, earnings per share of 0.50 dollars came in below expectations as net income fell sharply year over year and automotive margins stayed compressed. Despite the profit pressure, free cash flow was around 4 billion dollars and cash plus investments exceeded 41 billion dollars, underscoring a still-strong balance sheet.
Michael Burry’s fresh comments
Michael Burry, famed for his “Big Short” housing bet, has renewed his criticism of Tesla. He describes its market capitalization as “ridiculously” or “absurdly” overvalued and saying it has been that way for a long time. He argues that Tesla dilutes shareholders by roughly 3.6 percent per year through stock-based compensation without offsetting buybacks. He also warns that Elon Musk’s recently approved, very large pay package could add further dilution if performance targets are met.
Burry also contends that Tesla’s fan base keeps shifting its main thesis—from EV dominance, to autonomy, and now to robots—as competitors catch up in each area. His renewed remarks have reignited debate over whether Tesla’s lofty valuation is supported by fundamentals like slowing profit growth and shrinking margins versus longer‑term bets on AI, autonomy, and robotics.
About TSLA
Tesla, Inc. is an American multinational company headquartered in Austin, Texas, specializing in electric vehicles, battery energy storage solutions, and solar energy products. Founded in 2003, Tesla designs, manufactures, and sells battery electric vehicles ranging from sedans and SUVs to trucks. They also manufacture stationary battery systems for homes and businesses, and solar panels and solar roof tiles.
The company is recognized as a pioneer in the electric vehicle market. They are known for their focus on innovation, sustainability, and advanced technologies like autopilot and full self-driving features. In addition to automotive products, Tesla is expanding its energy division with large-scale battery storage systems known as Megapacks, aiming to accelerate the global transition to renewable energy.
Analyst Ratings
| Analyst Firm | Last Updated | Rating / Score |
|---|---|---|
| CFRA | 12/02/2025 | ★★ (2 stars) |
| Market Edge | 09/18/2025 | Neutral from Avoid |
| Argus | 10/28/2025 | Hold |
| Morningstar | 11/07/2025 | ★★ (2 stars) |
| LSEG | 12/02/2025 | Underperform / Hold Mix |
| Schwab Equity Ratings | 12/03/2025 | D (Letter Grade) |
The analyst ratings for TSLA are mixed, leaning slightly cautious. Both CFRA and Morningstar assign TSLA a two-star rating, indicating below-average conviction. Market Edge has moved from Avoid to Neutral, while Argus maintains a Hold stance.
LSEG also leans conservative with an Underperform/Hold rating. Schwab’s D grade further reflects a bearish or cautious outlook. Overall, the consensus appears hesitant, with no strong bullish signals from major analysts despite recent market activity and heavy call-side options flow.
Want to see more of these trades? Try out Cheddar Flow free for 7 days. Learn More
Disclaimer: Options trading involves significant risk and is not suitable for all investors. You may lose the entire investment, and certain strategies may result in losses exceeding the initial amount invested. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice. Always consult a financial or tax advisor before making investment decisions.
