Tesla options trading surges to $245 billion as stock value climbs above $1 trillion

Tesla's stock has surged nearly 30% since the November 5 election, adding over $200 billion to its market value and pushing its valuation above $1 trillion. This has resulted in significant losses for hedge funds that shorted the stock, totaling at least $5.2 billion. The notional trading value of Tesla options reached $245 billion on Friday, a sharp increase from an average of $145 billion per day since the election. This surge has triggered a "gamma squeeze," forcing brokers to buy more shares to cover their positions. In the broader market, S&P 500 implied volatility has dropped significantly, as investors adjusted their strategies following the election. Funds have increased their equity exposure to the highest levels in over a month, reflecting a strong market rally.