Tesla stock saw the second-most options volume of all equities over the last two weeks
Tesla Inc (NASDAQ:TSLA) stock is extending its run higher, last seen up 10.1% at $353.74. The electric vehicle (EV) giant just reclaimed a $1 trillion market capitalization, as shares continue to see tailwinds from Donald Trump's election victory.
On the charts, TSLA is pacing for its fifth-straight win. The security has been climbing the past week as traders speculate on how much CEO Elon Musk -- a close ally of president-elect Trump -- will benefit from new government contracts. Also being considered is the possibility that Musk will influence policy after donating at least $130 million to the Trump campaign.
Options traders are speculating too. Over the last two weeks, Tesla stock saw 16,059,427 calls and 9,714,318 puts traded. The most activity during this time period was the weekly 11/8 300-strike call, followed by the 320-strike call in the same series.
It's a similar story in today's trading. So far, more than 1.3 million call have crossed the tape, which is double the average intraday volume. New positions are opening at 18 of the 20 most popular contracts, led by the November 350 call that expires at the end of this week's trading.
This recent runup has helped TSLA extend its year-to-date gain to 42.6%. Tesla stock is still trading well below its 2021 all-time highs, but multiple layers of support could help it continue to close the distance.
It's worth noting that this rally has pushed the stock's relative strength indicator (RSI) up to 83.5. Readings this high typically indicate the shares are "overbought," and a short-term breather could be in the cards.
