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Buy/Write tax related question especially for folks trading on Interactive Brokers: My understanding is that your option premium for covered calls is lumped into the P&L of your shares. So for example if I bought shares at 726 and sold ITM 725 calls for 7$ my cost basis is 726 and my P&L price...

Well this is clearly non-advice. There is no free get out of jail card with options. Unless you need the money now I would just ride it out. There’s no guarantee Tesla will be at 2000 by Jan 24. Perhaps you try roll it out to Jun 24 for a small debit and give yourselves more time. Averaging...

I like to roll before it gets ITM. So in your case if I see it break 700 and stay above that I might just roll them to next week. In general I think folks in this thread like to wait until Thursday or Friday to roll. Given how oversold we are, you just have to be wary of another March like run...

I was going to suggest selling them and reinvesting the proceeds if the SP drops further. But I just looked at the prices of some of these calls and they have lost 95% of the value. I like your idea of reducing the number of contracts and roll them out with lower strikes. But man the more I...

I doubt there is anyone in this group that is not down more than 50% from ATH. Just know that there are many others who are likely in the boat. Do whatever you need to do for your family and life. While I'm down more than 50% from ATHs I feel confident about my ability to navigate these...

No chance of that lol. It's a Friday. Electrek came out with a hit piece early morning and it was just picked up by Reuters etc.. TESLA IS LAYING OFF HOURLY WORKERS ACROSS ITS ORGANIZATION - ELECTREK

Nothing more dumber than this one below.

Everything about this situation is unprecedented including the slow train wreck of a bear market. Fed will continue the hikes until they see inflation dropping. The smart ones tell me most of the interest rate hikes are already priced in. The QT might be the part that is having a bigger impact...

Do you have any 600/XXX BPS in play for this week? 🤔 Just kidding I think 600 is safe for tomorrow, don't think we go lower than 620 tomorrow. Next week it might be a different story.

Hope is a good thing maybe the best of things but Monday is a holiday :) Wow are you expecting a drop to 400s?

Deployed some of my dry powder in IRAs to buy a few Jun 24 500 calls. I don't need the money in 2024 but have a hunch this will work out :) In my trading account, did a buy write for 400 shares this week( 691 and 671 purchase price), cost basis on these down to the low 650s. I got in and out of...

I have never managed anything so deep ITM so take it FWIW. Even if Q2 deliveries surprise to the upside we are at the mercy of macros. I have heard people saying we could have another 20-30% to go on the S&P. While it seems like Tesla is diverging ever so slightly from the indices I just don't...

Well not looking good so far so reduced my exposure for very small loss. I still would like to see a day 2 run. Here is what happened at the last two FOMC meetings. 1. 16th March: Parabolic 300 point move over 2 weeks. 2. May 4th: 5% TSLA move(30 million volume) only to start the next leg down...

I got burned on the call side badly during the previous FOMC move but I'm sticking to my guns and will continue to sell aggressive calls, 2:1 in favor of selling calls vs selling puts.. I know we are already down a lot but I expect the next few months to be very volatile for both TSLA and macros...

Not for today for but in general for next week that would be the support I might sell puts or buy calls.

Or you could look at the timestamps lol. Anyway we don't have a lot of support until 640 next, not advice.

Sorry I meant TSLA was looking strong given the indexes are down quite a bit. I agree 690 is a key level.

Sold the 800 06/17 for 5.00. Now I wait to see what happens with the 690 level. I must say it is looking like very strong support. edit: Not strong lol. this market is nuts

Confused, can you not pick specific lots after selling? My broker allows two days to sort it out.

690 is the level I'm watching. Not touching anything until I see it test that level. I might sell some 06/17 800 calls If we see an uptick at open. Not advice.

At some point today I think we retest 700. I'm not making any trades until see what happens on the retest. I think we go down to at least 695 and perhaps 680. If we close below 700 EOD I think there is more downside for tomorrow. I'm going to sit tight for now. -Not Cory

In general I think this is a winning strategy especially on a Friday dip. But we did not trigger the uptick rule today so hedgies leaving the door open for another attack on Monday. How often do you see MMs/Hedgies(we should probably call them Medgies because they are colluding lol) not going...

Might be a good day to buy some lottos. Elon will chime in at some point on Twitter unless he wants to keep the employees guessing.

Before you do anything with your positions make sure you check out the nightly videos/tweets from Cory, Wifey and all the TA experts 😀 Elon is definitely one of us. He just got a bit too aggressive with his CC this week…

Interesting new “email leak” comes out on Friday morning. I’m sure it’s all just a coincidence 😀.

Unless something changes with the macro overnight I’m expecting a gap up and run above 800. That’s just my read. It could end up closing below 800 but I also think we might see a repeat of last Friday’s action.

I think you got lucky with your timing of following ES :). AFAIK this guy has been screaming top for 18 months now lol. I still think it's good to follow people like them because they often provide a different perspective. Nobody can time these markets. Whatever you do don't follow squawk 🤦‍♂️

I think today will be a make or break day. MSFT adjusted their guidance due to FX pressure, nothing too significant. Market/TSLA holding up well so far but that MSFT guidance thing will get lots of media coverage and impact all the stocks. Just keep that in mind.

I guess you are saying that the price reduction/demand issues is mostly because of the issues they had with their battery. Unfortunately for GM we are not in 2018/19. There is a lot more competition from other automakers + buyers can avail the tax rebate. I look at this as a negative for GM...

gotta love the headline, confused minds will wonder if this is a good thing or not for the company. https://www.theverge.com/2022/6/1/23150210/gm-chevy-bolt-ev-euv-price-cut-2023

Did you do the buy write when shares were trading at 975$? If so, how did you handle the volatility and the subsequent drop to 620$? Did you continue to sell weekly calls? I remember my lot of 300 shares that I bought when SP was at 900$ were in the red obviously and I decided to “roll” them to...

I tried this strategy back in Feb:Mar and it works well when the stock is not swinging wildly. At these levels I believe it makes a lot more sense and is lower risk IMO. So for next week I bought 200 shares @755 and immediately sold 2X 6/3 765 calls for about 20$. My max profit is limited to...

Call your broker and see if they can help you avoid the assignment?

The only risk I see is early assignment especially if the split is officially announced with an effective date and MMs potentially have to find the missing shares. Or is that not a risk in your opinion?

Compared to IV one week or two weeks ago it has come down quite a bit. I honestly don't think premiums are juicy enough especially with major indices above their 20 day MA(bullish for short term sentiment) and Tesla seemingly got manipulated down on fake news. I'm not betting the boat on calls...

IMO IV is very low. Not advice but this is a good time to buy not sell.

I don’t have the KPIs in front of me but data came out that inflation might be trending down. Core PCE came in at expected levels. Market likes it.

The simple explanation could be that this a risk off environment and people are moving to cash. Also, not many are so heavily concentrated in TSLA so we can only guess that their portfolios must be hurting bad especially with 75-80% drawdown in some growth stocks.

5/27 is tomorrow so I don’t think this is that bad of an anomaly. I meant the margin requirements for the person on the other side of your transaction. Somebody exercised the put or was forced to. I don’t think this is market makers.

What was your expiry? I’m wondering if Margin requirements changed for a certain broker and this a result of that?

Macro wise the volume is weak. TSLA OTOH is trading well above average volume. I think the Elon filing yesterday played a major role. We are looking good to close above 10 day SMA too. Also for tomorrow check if QQQ can break above 301. That would be very bullish.

Agree with this but still not convinced how we make the conclusion that this is bullish.

Pretty much what I’m saying?

This is the part that does not make sense. Why exercise now if you are bullish? Wouldn’t you rather just sell the put?

Why would you go short if you expect SP to rise?

Sure but we are specifically talking about a put assignment scenario that happens when there is another person on the other side that wants to let go of their shares.

Why is this bullish? IMO this indicates there is a negative sentiment in the market for the short term to medium term. The person who bought the 920 put for example is willing to let go his/her shares instead of selling the put with the time premium left on it. Hopefully this is just retail...

There is nothing in the filing to indicate or confirm if Elon will sell more TSLA shares.

Yes this is what I was worried about when I responded to your post yesterday. It seems to be underperforming. That said I like that it almost retested Friday lows and is gradually climbing upwards. Volume is more than average. Now let's see what the rest of the day looks like and see if we get a...

Is this a trick question :)?. The poster asked for a LEAPS 101 lol. Why introduce him to the "max pain" land.