2.19 million options traded, representing 219 million shares or about 20% of the shares outstanding and about 60% of the float after deducting shares that are in index funds and ETFs, and would not trade except on index rebalances and fund inflows and outflows

Market makers buy or sell shares to hedge their option exposure. Puts balance out the calls, so the market maker's net exposure to today's trades was about 46 million shares (1.32million calls minus 0.86 million puts) - total traded volume was 30 million.

As the price rises or falls relative to the option strike price, the "delta", that's the proportion of shares that the MMs hold rises or falls. This change in delta is known as "gamma", and the share buying or selling due to gamma is the "gamma squeeze".

The gamma squeeze works on all outstanding options, not just the options traded today. At any one time, there are often more than 5 million options outstanding, representing about half of Tesla's outstanding shares and more than 100% of the freely traded float

On a day like today, market makers would have been heavily involved in trading Tesla shares to hedge their exposure. It is possible that the vast majority of Tesla share trading is a direct result of option hedging.

Option gambling is obviously driving the price of Tesla shares. The number of shares changing hands daily, apart from option hedging, is probably quite small. In fact, the shares are much less liquid than the numbers suggest, which explains the wild swings in share price.

That's why large sales, such as Musk's sales earlier this year, have a disproportionate effect on the share price.