A roll up to J14 $45 would credit you about $4 per allowing some profit taking but leaving you nicely long and still relatively ITM. Volume on the $45s isn't bad. Otherwise if you're ready to move out, you get about half that by rolling to J15 $50 and even J15 $55 would produce the same profit taking (about $4 per) while nicely out in time. I've moved all my long dated calls to J15 and if $60 holds after earnings I'll role those from $40-$45 to $50-$60 and probably throw in a few higher strikes
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Advanced TSLA Options Trading
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A roll up to J14 $45 would credit you about $4 per allowing some profit taking but leaving you nicely long and still relatively ITM. Volume on the $45s isn't bad. Otherwise if you're ready to move out, you get about half that by rolling to J15 $50 and even J15 $55 would produce the same profit taking (about $4 per) while nicely out in time. I've moved all my long dated calls to J15 and if $60 holds after earnings I'll role those from $40-$45 to $50-$60 and probably throw in a few higher strikes
PureAmps
Model S P85 (#2817)
Did CBOE add TSLA weekly options when I wasn't looking? I'm just looking at some potential post earnings trades and noticed weeklys are now available with expiration this Friday.
yep - added about a week ago; caught me by surprise as well- my broker had told me to expect them up sometime in June
Citizen-T
Active Member
Alright guys, I need help. I bought May '13 $60 (did I say it right that time?) calls on Wednesday for $2.05 ea. I would like to lock in some of these gains, but keep some exposure in case this is the epic short squeeze. Seems like I should roll-up to a higher strike price. I suspect things are going to be crazy tomorrow morning. How do I tell what to buy and at what price?
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Never mind. I just noticed there is a discussion on this going on in the newbie thread. I probably belong over there. =)
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Never mind. I just noticed there is a discussion on this going on in the newbie thread. I probably belong over there. =)
I don't know that rolling calls is a Newbie thing, but yeah, you sell your $60 calls and use some of the proceeds to buy new calls at a higher strike. Considering you're already in May, there isn't much time value left in the calls, but also not a lot of time for the newly bought calls to appreciate. So, you may want to choose a new expiration date that's further in the future.
Depending on your broker, you may be able to do the buy and the sell as one transaction and save some money on fees.
Depending on your broker, you may be able to do the buy and the sell as one transaction and save some money on fees.
OK, does anyone here think that $70 is the new norm for TSLA? I didn't think so. Many think the price is going to Mars, some think the price will blow out.
A couple of typical strategies for taking advantage of expected stock price movement are the Straddle and Strangle. They consist of buying both a Put and a Call, either at the same strike price (Straddle) or split strikes (Strangle). Your loss is limited to the price you pay for the options, but your profits are virtually unlimited. The more the stock price moves away from the strike, the more you make.
Has anyone looked into these for Tesla? I would think that since Puts have been expensive these haven't been good plays, but if you think a short squeeze is coming, then buying Calls is one way to profit. If you also think a big drop might be coming, then buying Puts would protect you. Combine these and the worst thing that happens is that Tesla stays at $70 (or whatever strike you choose) until expiration. That seems the most unlikely.
Anyone got any other ideas? I'm pretty fully invested in TSLA, thankfully, but do have some dry powder. A drop in price would have led me to selling Puts, but that's out for now. Playing the momentum can be profitable, but I'm not a momentum player. Any other ideas?
A couple of typical strategies for taking advantage of expected stock price movement are the Straddle and Strangle. They consist of buying both a Put and a Call, either at the same strike price (Straddle) or split strikes (Strangle). Your loss is limited to the price you pay for the options, but your profits are virtually unlimited. The more the stock price moves away from the strike, the more you make.
Has anyone looked into these for Tesla? I would think that since Puts have been expensive these haven't been good plays, but if you think a short squeeze is coming, then buying Calls is one way to profit. If you also think a big drop might be coming, then buying Puts would protect you. Combine these and the worst thing that happens is that Tesla stays at $70 (or whatever strike you choose) until expiration. That seems the most unlikely.
Anyone got any other ideas? I'm pretty fully invested in TSLA, thankfully, but do have some dry powder. A drop in price would have led me to selling Puts, but that's out for now. Playing the momentum can be profitable, but I'm not a momentum player. Any other ideas?
One thought about May 13: Quite possibly some shorts have insured their positions by buying May13 calls. Let us assume many of these were sold as covered. Shorts exercise to cover their position, and let's assume they have had enough. Then the sellers of the covered longs go out in the stock market to get back into their positions. Could this lead to a little price spike in the stock on the 13th? Is the open interest in relevant calls sufficient for that?
smorg- my thoughts are 60s are the new norm but not yet 70s; I think they could drop to upper 50s, but may ride in the 60s for a while. Without some real short covering I'm not feeling the 70s holding. The other piece to remember is with declining credits, Q-over-Q comparisons will be tough. I see $58-$75 range for a while.
I did some put selling a while back - worked well due to high put price (from shorting); At these levels though I like the straddle better; I'm going to watch for a pull back though and do some put selling along with call adding (LEAP stuff likely)
toasty- depending on your investment situation of course- but on the surface yes I would roll those up myself. Take some profit and reload the time value potential. At this point those are essentially tracking the stock; One of the moves I like to make on LEAPS is to buy in the money, then roll them up as the price move, taking the profit (adding if it drops), but at the higher strike you'll initially be at a lower delta tracking, so if a pullback occurs it's less of a hit
Don- looks like significant OI at the $60 strike - could be enough to pull up the price if your thesis is correct seems to me
I did some put selling a while back - worked well due to high put price (from shorting); At these levels though I like the straddle better; I'm going to watch for a pull back though and do some put selling along with call adding (LEAP stuff likely)
toasty- depending on your investment situation of course- but on the surface yes I would roll those up myself. Take some profit and reload the time value potential. At this point those are essentially tracking the stock; One of the moves I like to make on LEAPS is to buy in the money, then roll them up as the price move, taking the profit (adding if it drops), but at the higher strike you'll initially be at a lower delta tracking, so if a pullback occurs it's less of a hit
Don- looks like significant OI at the $60 strike - could be enough to pull up the price if your thesis is correct seems to me
Thanks for the great information.
What do you think about the $75 June calls and the $80 Sept calls? I was thinking of those for a speculative play, and am sitting on a bunch of cash from the sale of the Jan '14 $45s I just sold for a entry into more Jan '14 and Jan '15 if the price drops back down to the low $60s. I think that the price is definitely over-inflated and will come down in the next month or two, but Elon's twitter tease about the next two announcements, now just around the corner, as well as the high short interest leads me to believe we might see $85-$90 before we see $55-$60
Thank you sir. I rolled them to JAN14 $80 calls. netted 300% after the roll. Leaves me the ability to stay long very happily.
yeah, those could be interesting as a spec play (smallish play imo)- the June calls in $75 have decent volume; for Sept either $75 or $80 are a little thin but workable. His announcements should happen for either one. Also Sept would include next report or at least a runup into it- I'm still thinking today was a big day that will see some cool down; I like your thought of watching for J14, J15 opportunity, especially balanced to favor the J15s; Also, keep in back of mind the J16 will become available toward year end. If LEAPS is part of your game plan for that
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yep- nice; you'll have the cash and as it pulls back, you'll see lees of a drop due to lower delta; and if by some reason we get massive short squeeze that moves those into the money you'll still participate and the closer they get to ITM the better they will track. I've stuck with $60 strike for now as a base position, but my J15 adds on pullbacks will be at higher strikes
I'm thinking that if there is a further upside to the stock, it is either fairly short term (squeeze) or long term (business success). Thinking 3-4 months ahead, I think it may be harder to sustain these levels. One good reason may be that the Q2 earnings - guided to be in the red - may be a harder sell. So I am playing with the idea of selling covered Sep 13 calls, 80-90 strikes. Any thoughts?
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
I'm in complete agreement on this scenario. Q2 earnings less the Q1 will be a knee jerk sell and won't hold current levels which anticipate rising EPS from here along with short covering. I see a return to 50 and 60 levels before the next up lift hat will require 30,000 unit S and model X 2014 deployment progress. A covered call sell can work; I'll likely balance my minimum long position with some put protection and on pull back sell puts and add long calls
I picked up my Roadster after its annual service this weekend in Menlo Park. The Menlo Park store is usually pretty quiet, but it was hopping with activity at 5:30 on a Saturday. The Tesla people there said that ever since the Consumer Reports review came out that they've seen a big jump in traffic.
Tesla is going to have to balance improving gross margin against increasing production to meet demand. I wouldn't be surprised to see wait times for Model S start increasing again.
Tesla is going to have to balance improving gross margin against increasing production to meet demand. I wouldn't be surprised to see wait times for Model S start increasing again.
Causalien
Prime 8 ball Oracle
Wait for extrinsic value to become negative. Then exercise and buy the actual stock.... but honestly, by now they just move like a normal stock. No point in selling due to bid ask spread. It depends on what you want to do with the money. Do you want more delta? Tax reasons? It's a very complicated decision.
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