Options flow is flashing bearish signals as markets brace for a heavy earnings week. Negative bets dominate the most-watched names, with TSLA, META, and MU all drawing concentrated put activity heading into results.
TSLA stands out. The stock is down 30% year-to-date and trades with an RSI of just 28 — deeply oversold territory. Negative options bets have topped positive ones over the past week. The short score sits at 31, modest by historical standards. But the options market is pricing in further pain ahead of upcoming Q2 results.
META tells a similar story. Down nearly 10% year-to-date with an analyst return potential of 39%, the stock draws heavy negative bets in the options market. It has the highest negative bet volume among the mega-cap cohort this week.
MU is the surprise entry. Micron has surged 223% year-to-date — the biggest winner in the semiconductor pack — yet options flow has turned cautious. Negative bets rank among the highest by dollar value. Traders may be locking in gains ahead of its next report.
On the bullish side, utilities are drawing call flow. DUK and AEP both show 100% positive options sentiment over the past week. Oil above $100 is pushing inflation fears. That drives defensive rotation into high-yield utilities.
CHWY and HTZ remain bear favourites. Both names feature in the week's heaviest short-side positioning. Hertz in particular faces rising cost-to-borrow pressure alongside put-heavy flow.
The broader signal: traders are positioning defensively ahead of a busy earnings slate. Calls are concentrated in energy and utilities. Puts are piling into high-beta tech.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
