TSLA Options Enter “Negative Gamma”: Big Price Swings Ahead in the Next 4 Weeks
For the next four weeks, Tesla (TSLA) is expected to stay in a negative gamma environment. This isn’t just a technical term-it means the stock is in a highly sensitive and unstable state. Understanding this can help us better anticipate price movements and adjust our trading strategies.
1. TSLA Becomes More “Fragile”: Bigger Price Swings
When market makers are in a negative gamma position, their hedging actions tend to increase the strength of the trend. In other words:
• The more the stock goes up, the more they buy.
• The more it drops, the more they sell.
This makes price moves more extreme. TSLA becomes more sensitive to news and more likely to react emotionally, leading to sharp and unpredictable swings.
2. Rising Volatility Risk: A Feedback Loop
Negative gamma can create a kind of feedback loop through market makers’ hedging:
• As the price goes up, they buy more, pushing it higher.
• As it goes down, they sell more, pushing it lower.
Even small news or events can trigger outsized reactions, causing misleading technical signals or short-term traps.
3. Breakouts Become Stronger-But Riskier
In a negative gamma zone, we often see false breakouts, rapid reversals, and even extreme short squeezes.
If the market is heavily tilted one way, for example, with too many short positions—a short squeeze can happen suddenly and aggressively. This is especially risky for short-term traders chasing price moves.
4. Key Price Levels See Bigger Reactions
Right now, there’s a large concentration of open TSLA put options around the $270-$280 range. As the stock gets close to these strike prices, market makers may need to make large hedge adjustments.
If TSLA drops below $270 in a meaningful way, the model suggests it could quickly fall toward $258 as forced selling accelerates the move.
5. Neutral Gamma Zone: $285–$290
This is the current gamma-neutral zone for TSLA, meaning hedging pressures from both sides balance out. If TSLA trades in this range, the stock may move sideways for a while without clear direction.
Summary
TSLA is entering a period of extreme technical sensitivity and emotional overreaction. Gamma dynamics in the options market show that the stock’s moves are no longer just about fundamentals or chart patterns, we also need to understand how market makers are adjusting their hedges and how capital flows are shifting. In the coming weeks, investors should be extra cautious, many of TSLA’s sharp moves may look random, but they’re often the result of these gamma effects.
Now, Here’s the Drama Behind the Market Move:
June 5, 2025 – What Started as a Policy Debate Turned into a Full-On Public Feud
On Thursday, June 5 (Eastern Time), a policy disagreement suddenly turned into a direct and very public conflict between Trump and Elon Musk, two once-unlikely allies who now seem to be fully at odds.
💥 The Spark: Musk Slams GOP Bill
It started when Musk strongly criticized a tax and spending bill pushed by Trump and the Republican Party. Trump had praised the bill as “huge and beautiful,” but Musk didn’t hold back, he called it a “disgusting monster” and said it was full of “pork projects.” He warned that the bill would weaken clean energy support and cut EV tax credits-directly hurting Tesla’s business.
🔥 Trump Fires Back
Trump responded quickly, saying he was “very disappointed” in Musk. He claimed Musk’s real problem was losing EV subsidies, not the policy itself. Then he took it further:
“He annoys me. I’ve wanted to cut him out of the government circle for a while now.”
Trump also threatened to cancel all federal contracts and subsidies for Musk’s companies, including Tesla and SpaceX.
⚡ Musk Goes Nuclear
Musk immediately fired back on X (formerly Twitter) with a wave of explosive posts:
• He claimed Trump’s name appeared in sealed Epstein files and suggested that’s why the files hadn’t been fully released.
• He reposted a tweet calling for Trump to be impeached and replaced by J.D. Vance, challenging Trump’s political legitimacy.
• He warned that Trump’s tariff policies could trigger a recession later this year.
And in a bold move, Musk responded to the contract threats by saying:
“SpaceX will immediately begin retiring the Dragon spacecraft.”
This was Musk making it clear: he’s not backing down. In fact, he’s ready to escalate the fight even further.
Impact Analysis: This Isn’t Just a Fight—It’s a Breakup
📉 Political Fallout: Ex-Allies in a Public Feud
Musk was once part of Trump’s advisory circle and seen as one of the few tech leaders willing to work with him. Now that alliance is over, and Musk publicly calling for Trump’s impeachment could cause real division within the conservative camp and reshape the election landscape.
💸 Market Impact: Tesla Tanks, SpaceX at Risk
On the day the feud broke out, TSLA shares dropped 14% as investor fears spiked. If Trump follows through with ending federal contracts, SpaceX’s missions with NASA could be affected—those are key to its profitability. Musk’s recession warning also shook market confidence.
📢 Media Firestorm: The Epstein Files Spark Outrage
Once Epstein’s name came up, the conversation moved from policy to ethics and legality. Musk didn’t provide proof, but just mentioning it reignited debates about political transparency, public trust, and how much power billionaires really have.
More Information/Reports/Video/Analysis please contact us—info@the-currency-store.com. We offer fully customised content services tailored to you needs.
Add comment
Comments