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I don't see what's the problem in MM selling you and delivering stock at $350 strike price, and turning around and buying stock in the open market at $190. In the process they close long put position, and get their money back. I don't see why would they finance anyone for free, when there is...

I am afraid you will find that it's not only theta you need to worry about. Every put you sell, nets you cash in your account. Someone, in this case most likely MM's, have bought that put from you in their role of making markets, and if there is no willing third-party buyer, they're keeping it...

When I get to $0 margin, I sell 13 shares and buy 1 put, strike price $30-$40 under SP for a week or two ahead. Then I roll if I have to. This increases margin significantly 13 shares because IB enforces not more than 1:8 rule on combined options/stock combo trade. Combo is usually the only way...

Please type it in CAPITAL BOLD next time!

If I wanted to short TSLA without paying option premium, and still be protected against unlimited losses, I'd buy those. Market makers would sell them to me, and hedge by shorting shares in a 1:1. They end up with tiny premium + liquid cash that prob has some value...

I want to present alternatives to spreads and alternative to maximizing opportunity. We know that puts pay better than spreads PER UNIT, but much less overall PER MARGIN used, so I feel key is to think in terms of units. It helps me to think of overall exposure if SP drops 20 or 30% or 50%...

Scary to hear that...

Bear market bounces are rip your head off type of rallies... Having said that, there are 3 strong levels of resistance btw 900 and 1000. I think you like to live dangerous, right? ;)

I recommend this strategy for light leveraging at quite low risk. This will create 20K-100K at most, for a $1M-$2M portfolio. Advantage is low risk, "just a bit of extra return" to buy more shares, and very low or no maintenance. Main con is it would work poorly for 1. someone with itchy...

Not true in details. His initial margin is 35%, i.e. he gets $35 cash for $100 TSLA stock Currently, he could borrow only against 25% of the shares as per Tesla bylows. That could be changed. But he has a clause re borrowed 12.5B that he faces margin call if TSLA SP drops 40% from founding date...

I think I thought like you few years back - safe small gains are safer than additional small exposure. After lots of experience with both, I've changed my mind. I've lost few thousand shares at prices around $120-$130, and barely saved few more thousands around $300. So while I didn't really...

If you paid any attention to my posts, you'd see that I often advised against CCs, as these have been the worst decisions I've made, and where most of my opportunity loss has happened. As for puts, my advice/not-advice is to sell ONE put short. Should one do that(with 1500 shares), one uses...

With 1500 shares, if I were in your shoes, with todays drop, I'd probably sell ONE! $1000 put short for Dec'22 at current $224, and sleep rest of the year. You could add one more if we move much lower at better prices, lower strike. You're not going to learn that much, but low stress, decent...

Be aware that almost everyone eventually gets burnt quite badly. For me, it came three years after I started, but I feel it's almost better it happens early on, when stakes you put out are small. You will start small, right? And btw, spreads could lead to 100% loss of what you put on the line...

Last comment - at the risk of offending you, I'm not quite sure I made my point obvious, as you mentioned AGM, as to me that's a short-term! Hypothetical scenario - we explode to $1300 in a week or two; (one needs to suspend disbelief and check historically how many times this happened) Now...

Got it. If we get deep ITM, all time premium will be lost, and you will need to add lots of time to be able to roll. With short time frames you run a risk of being assigned. For examples of time premium, you could look at $700 strikes today, and how much premium they have. If you're ready to...

This strategy will certainly improve your profitability, and may get you out of CCs. But pls consider how would you feel if next week we spike to $1300, when you have maybe $1010 CCs? Will you regret not taking a loss, or is this price where u r ready to sell for real? Speaking from experience...

You probably didn't have enough cash to be assigned, and 3pm is deadline with some brokerages for you to resolve this kind of situation. If SP closed at $995, your long leg is useless, and you need 3xUSD99.5K to take assignment from the short leg.

4 million shares less available today for shorting, as compared to yesterday (24.x the day before yesterday; 23.5M yesterday; 19.5M today) It could mean many things, but one of the possibilities is that these are reserved to be used today...

For anyone wanting to sell CC, or shares, remember the 8 week rule. I've posted this once before: https://teslamotorsclub.com/tmc/posts/4202841/

I've been with Tesla for 7 years now, quite actively trading around position. I've done what you want to do, and lived to regret it. Take into consideration that TSLA could leap up to 100%-150% (up to 2.5x) from the 200 day line. 200 day line is at $894. So while it would delight me, it...

You can't ask that of him. One can decide to work on individual development or to change the world. There are no enough cycles for everything. Especially for someone raised by narcissistic father. I chose former and gave money to Elon to manage. Now I watch from the sidelines, retired and with...

Borders are always porous. At the time of full economic sanctions to Serbia, everything was able to pass trough. It got more expensive. It cost 20-100EUR in bribes to cross with the car and content, whatever one was smuggling, 1000 EUR for a truck, and _I think_ 10,000EUR for a train... Joke...

I did 92.5% drop down by Feb '16 on TSLA I took lessons to heart, rebuilt and borrowed to invest at opportune time. 3.5 years later and first TSLA moves from $2xx to $4xx pre-split (i.e. $40-$80 today) and I was in a position that work became optional by the end of '19. Which was a...

My math is wrong, loss would be 300K (10x100x(1200-900)), so the whole message is muddled with this change, but position is still rollable...

I'm not really not getting why put spreads? If you open 12/16 x10 -p1200, credit will be around $320K ($320 per put), and required capital to secure it around 550K (this will increase if price drops) (I am assuming you need 1M margin to start the trade, but am I wrong, and you need only $325K?)...

I am short both 1400 and 1200 puts for July. Does that qualify? I prefer my payments in large chunks and eating big meals during intermittent fasting ;)

Just a quick what-if exercise: if we repeat (percentage-wise) measured move from the mid of Aug to the beginning of November '21, we will: end May '22 at $1415! I am NOT saying this will happen (I'm not even remotely that good) - I'm just asking you to challenge your assumptions of what is...

Often, when TSLA starts pushing on BB... It ends up looking like this. Just for those that are brave enough to continue with CCs

Wow - not sure where you get your data, but all your data re Balkan and Russia is wrong. (*) Russia did NOTHING other than receive Pristina airport as peacekeepers from Serbians, who requested it. This was at the time NATO was bombarding Serbia, and Serbia was about to surrender, so you can...

Amateurs... ;) I lived this

I am Canadian, lived 25 years in Canada, but natively I am from Serbia (Slavic country too). Please(please) tell me this is NOT a common opinion of a native NA person? I can assure you that if NATO gets dragged into a conflict, Putin will use nukes. How is this not SUPER OBVIOUS???!!! Hence...

I see no proof that we have bottomed. Possibly yes, but not certainly...

Dictators replace all sane people with minions. They they setup minions and their families to the 5th removed cousin with great, powerful, corrupt jobs. To buy their loyalty. And when I say minions, that includes anyone that has access to them. Putin's cook may be more powerful than most...

You got it mostly right, yet, as I've lived this experience I feel compelled to add couple of things. Ethically, I am Serbian, but I was opposed to Serbia's action (MIlosevic's actions) throughout his campaign, while student and later, until I moved to Canada '97. Firstly, leaders of Croatia...

If you sell one, you're making even less money. If you sell multiple, your shares hedge only one contract...

No there isn't. You've heard of the term "in spite of"? Slavs do a lot of things in spite off, and because of stubbornness. As in "I'll do this, in spite of him telling me not to do it..." I'd know, I am one, took me 30 years to get rid of this mindset. Have you seen that Ukrainian guy carrying...

??? Putin would answer with tactical nukes to that. Not bing ones, just small ones. It's a part of Russian military doctrine, even if he wasn't who he is.

I agree with your assessment about Putin's dreams. Yet, he's been very consistent throughout years drawing a "do not cross" line at Ukraine, so I feel he'd feel he has built a "legacy" by stopping with Ukraine. I don't doubt he'd like to snap three small Baltic countries that divide Russia...

Not Really. No ex Eastern European (poor) country has any chance of joining EU before it aligns militarily with NATO/EU. Historically in Cold War they may have been exceptions. It actually makes sense - why sponsor poor country development, and that's what EU does, if country could become a...

Joining EU is the real dream of all poor European countries. That's what raises investments and living standards. Joining NATO is just a prerequisite, whether written or not. Should this happen, it may turn out to be useful offramp. Demilitarized Ukraine that belongs to EU. Everyone can claim...

In a margin account, if interest rate is low enough, just buy more shares by borrowing. Assuming you want to leverage lightly, 10%-20%-30% of additional shares would be relatively cheap to borrow for and quite safe. In a non-margin account, think about leverage you want. Maybe 10%? Example...

If you did this at $1200, do u see how you may not have liked it? :)

Writing options in this market feels to me like bull-riding. I approve if you are in it for a thrill, or you are a pro... If not, I think many will be served better by taking few weeks break. Starting in January Bull - I mean market, is trying to throw and hurt most riders possible.

Tesla told me that I needed brake replacement 18 months ago, but I did couple of procedures like for brakes bead-in, and that cleared out rust/rotting in. I did this just a couple months ago and passed safety certification afterwards. This for 5 years old Model S with only 30K miles (47KKm)...

Context: Blocking the main US-Canada bridge was just selfish - pure selfishness. 100s of people decided to exercise their will, and didn't care that they're f... up livelihood of 100s of thousands people - that bridge carries 25% of all commerce btw Canada and USA. Supply chains crashing...

QYLD seems like a suboptimal idea. Look at 5 year chart, compare to QQQ and figure out their strategy and you'll see why I'm saying that. In the bull market, they lose assets as expressed in units of holding, in bear market their yield is likely to drop. I've looked in the past at the BMO short...

True for assignments happening only after hours. My experience about early assignments: when extrinsic value is lesser than whatever risky interest costs (5-10%!) are btw now and the strike expiration . That usually translates into less than $1-$2 on deep in the money short puts that I usually...

Sorry I didn't see if you posted anything in mod capacity, apparently I've blocked you few years back.

True. It's also based on human psychology and psychology of the crowds. For example: - human are adverse to loss, so when there was significant trading at some level, and then SP drops, there are many holders that wait to get back into positive, and sell immediately. This creates overheads. -...