U.S. markets witnessed a mixed performance last week as investors and traders keenly eyed developments surrounding the debt ceiling crisis, consumer price inflation, and a few quarterly earnings. Market participants are likely to continue their cautious stance as the debt ceiling impasse enters the third week of May. President Joe Biden has said he expects to meet with congressional leaders on Tuesday for talks on the debt limit.
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As the market is expected to witness some volatility this week, here’s a look at crucial trading levels factored in by the options market for these mega-cap stocks:
1. Tesla Inc TSLA: Shares of Tesla closed 2.38% lower on Friday at $167.98. Options expiring on Friday indicate significant open interest accumulation at the $180 Call strike, indicating the level could act as strong resistance in the short term. On the downside, both the $160 and $150 Put strikes are seeing decent open interest accumulation, indicating these levels could be lines of support for the week.
2. Amazon.com, Inc. AMZN: Shares of the retail giant closed 1.71% lower on Friday at $110.26. Options expiring on Friday reveal significant open interest accumulation at the $115 and $120 Call strikes, indicating the levels could act as lines of resistance for the week. On the downside, the $105 mark could act as a stiff resistance.
3. Meta Platforms Inc META: Shares of the social media giant closed 0.84% lower on Friday at $233.81. Options data shows significant open interest accumulation at the $240 Call strike, indicating traders are likely factoring in the level as a short-term resistance. On the downside, the $215 mark is expected to provide support in the near term.
It is noteworthy that open interest levels only provide a fair idea about support and resistance levels. Any major news break or macro event may cause significant stock price movements and a subsequent shift in open interest levels.
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