Notable Monday Option Activity: NFLX, TSLA, COST

Options trading for Tesla (TSLA) and Costco (COST) is significantly elevated today, signaling heightened investor activity. TSLA options volume reached 1.2 million contracts, or 153.9% of its average daily share volume, with notable interest in the August 2025 $350 call. COST options volume also surged to 25,196 contracts, 114.8% of its average daily share volume, driven by high trading in the September 2025 $1000 call. This substantial options activity, particularly in long-dated, out-of-the-money calls, suggests increased speculative positioning or strategic hedging related to potential future price movements for both companies.

Analysis

Tesla (TSLA) and Costco (COST) are experiencing significant and unusual options market activity, indicating heightened investor focus. TSLA's options volume has reached 1.2 million contracts, representing 153.9% of its average daily share trading volume. A substantial portion of this activity is concentrated in a single long-dated contract: the August 29, 2025, $350 strike call, which alone has traded over 120,000 times. Similarly, Costco's options volume is at 114.8% of its average daily share volume, with notable interest in the September 19, 2025, $1000 strike call. The concentration in these specific long-dated call options suggests that market participants are establishing positions based on expectations of significant share price appreciation over the next 14-15 months, or are potentially implementing large-scale strategic hedges.

Key Decisions for Investors

• Investors should monitor the open interest and volume flow in the specified long-dated call options for both TSLA and COST as a potential indicator of institutional sentiment and positioning for future growth.
• The surge in call buying implies bullish sentiment, but this should be weighed against the underlying fundamentals of each company before making a directional investment decision.
• Traders considering options strategies on these stocks should analyze the impact of this high volume on implied volatility levels, as elevated premiums could make selling options more attractive than buying them.