Tesla stock price up 1.05% on Tuesday, but here's what to expect

The stock price of Tesla Inc. TSLA was 1.05% higher on Tuesday and has gained over 13% in the last five days.

What Happened: The stock, like major Wall Street indices, witnessed a see-saw movement on Tuesday as investors held on to every word spoken by Federal Reserve Chairman Jerome Powell.

On Tuesday, Powell acknowledged that the disinflationary process has begun, in his discussion at The Economic Club of Washington, D.C. He said that the central bank would have to raise rates more than what is priced-in if the labor market is strong and inflation remains high.

What You Need To Know About Tesla Stock?

Professional option traders seem to be limited in their bullish stance on the stock despite the optimism shown by Wall Street. Professional traders, who mostly prefer shorting options and collecting premium over buying options, seem to be betting that the stock won't break the $200 mark on the upside, according to Tesla options expiring on Friday.

The 200 strike has the maximum open interest build-up on the Call side with 33,424 contracts. This indicates the level is considered to be a stiff resistance on the upside until Friday.

Support levels on the Put side are being seen at the same time as well as the $190 level, $185 level and $180 levels, indicating different support levels on the downside. Professional traders are willing to bet on because there is no sacrosanct level on the downside for the short term due to the absence of concentration of open interest at any one level on the Put side.

Open interest levels don't give a good idea about support, resistance levels anticipated by the market and any major news-flow or corporate event that could lead to a rapid movement in stock prices and a subsequent shift in open interest levels.

Read Next: Cathie Wood Thinks Connected TV Stands To Benefit Most From Huge Ad-Dollar Shift Away From Linear TV