Wiki Selling TSLA Options - Be the House

[corduroy]

Looks like the days of FOMO buying before earnings are history. Wish I would have sold some calls this week.

 

[Drezil]

Looks like the days of FOMO buying before earnings are history. Wish I would have sold some calls this week.

Yup.

And i bet big on FOMO before earnings...
I hope i can limit the losses to 70k .. :/

I should have kept to bull-puts and other theta-positive-strategies instead of calls..

Edit: I mean .. if you really want to do me a favor, you can push TSLA to over 700 before the close, so i can close things in the green. After that you can just let it fall again to 640 or so ..

 

[euro2012]

Sold a 640 put this AM for $4, just to make the day interesting. Given what is coming on Monday, I will feel a little fomo if it doesn’t end up ITM, lol.

 

[buttershrimp]

810 end of day. Just watch. Which stock are we talking about?

 

[Discoducky]

I'm in for a moderate single BTO call $652.50 Jul 30th expiry. Good luck to all!

Here's to hoping for a good earnings!

 

[Buckminster]

I'm in for a moderate single BTO call $652.50 Jul 30th expiry. Good luck to all!

Here's to hoping for a good earnings!

I did the same except 710 strike... I have never made money buying short term calls but couldn't resist.

 

[mongo]

Tell me about it - 7/30 cc702.50's were almost $12 at close on Tuesday - that was a good premium, but hey, I expected some kind of run this week too...

Monday will be fascinating to say the least, I think it's almost certain we'll see a decent EPS beat, and profits without reg credits too, after months of manipulation we are due a correction to the upside, is now the time?

Seeing as how we just sold our first CCs... definitely an upside correction...

 

[LN1_Casey]

Sold a 665 call on Monday for $4, and closed it out on the dip this morning for $0.50 just to ensure no shenanigans' over the weekend.

Going to try and sell a ITM call Monday during the pre-earnings FOMO, if there is one. If it gets exercised, hey, I need the cash anyway. I can sell some puts then.

 

[Drezil]

Welp .. closed the options that were in the money on the runup to 648.60 ..
i fear the rest will expire worthless.

I gladly take donations to the options-gambler fund to offset my 84k loss :/
That really really hurts.. and i had the chance closing nearly all of them for next to no loss on the 700 run-up half a month ago -.-

Greed now got most of my portfolio. But i will recover. As always.

 

[juanmedina]

I did the same except 710 strike... I have never made money buying short term calls but couldn't resist.

Hey you bought one of my calls lol

 

[adiggs]

I've got this stack of CC that I really want to sell (cc and call spreads) and am going to continue holding off. I keep expecting a mid/upper 600s jump and I'd like to sell then, rather than now. I will almost certainly sell distant OTM call spreads on the other side of my put spreads on Monday to capture the IV drop, even if they're only like a $1 credit. Distant like .05 or MAYBE .10 delta (and then probably closing Wed or Thurs).

I am sufficiently persuaded by others view that we'll see a jump either going into earnings, or afterwards, that I'm waiting for that jump before I enter the bulk of my call side sales. I say "sufficiently" as this looks and feels like about 3-5 years worth of quarterly earnings in the past, where there was great anticipation going into earnings (with or without share price runs), and then the investing public didn't really do much with it immediately afterwards (sell the news).

More specifically it looks like everybody is expecting great earnings and a corresponding jump in the share price afterwards. So 'everybody' has already positioned themselves via purchased calls and shares, taking those buyers out of the pool of people that would be buying after earnings. In fact many of them are in the pool of "going to sell right after earnings", fueling the "sell the news" dynamic.

I expect that long term investors will be over the moon about the earnings report, but I don't expect the broader investing world to join in. And if I'm right then we'll see a continued slide in the share price next week.

 

[bxr140]

Was it you @bxr140 that did a backtest on covered call strategy for 2020, and found that even with such big run up in the year, you would still have benefitted as much as HODLing the shares?

Anyone with CCs in 2020 got done proper, like the rabbit. It is a terrible idea to sell CCs against one's core shares of a stonk like TSLA. Its very plausible, like in 2020, for them to go so far underwater that there's no sensible/plausible recovery.

 

[Criscmt]

I've got this stack of CC that I really want to sell (cc and call spreads) and am going to continue holding off. I keep expecting a mid/upper 600s jump and I'd like to sell then, rather than now. I will almost certainly sell distant OTM call spreads on the other side of my put spreads on Monday to capture the IV drop, even if they're only like a $1 credit. Distant like .05 or MAYBE .10 delta (and then probably closing Wed or Thurs).

I am sufficiently persuaded by others view that we'll see a jump either going into earnings, or afterwards, that I'm waiting for that jump before I enter the bulk of my call side sales. I say "sufficiently" as this looks and feels like about 3-5 years worth of quarterly earnings in the past, where there was great anticipation going into earnings (with or without share price runs), and then the investing public didn't really do much with it immediately afterwards (sell the news).

More specifically it looks like everybody is expecting great earnings and a corresponding jump in the share price afterwards. So 'everybody' has already positioned themselves via purchased calls and shares, taking those buyers out of the pool of people that would be buying after earnings. In fact many of them are in the pool of "going to sell right after earnings", fueling the "sell the news" dynamic.

I expect that long term investors will be over the moon about the earnings report, but I don't expect the broader investing world to join in. And if I'm right then we'll see a continued slide in the share price next week.

Last time we both shared the same view on the slide after earnings.
I would say, this time around, there’s a good probability that again will happen, >50%.
That said, volume has pretty much dried up. Elon and Zach might have something up their sleeve to bring some volume (buying) back up. Otherwise, the stock is at a risk of big slide down.
Also, I am surprised the analysts haven’t come out with revised targets (up or down) on FSD subscription. Maybe they thought waiting a few more days till earnings is better.

I do see a high probability of split coming soon. But not sure if it will be announced in a matter of few weeks from now. It might, best case next week

 

[CHGolferJim]

Decided my 073021C730 CC were too cautious, so rolled them back to 073021C710 today and picked up $6k, accepting that the likelihood of a forward roll to 0806 increases, but still have $50 room in the SP. Max Pain and typical MM behavior suggest the stock won’t move that much, we’ll see. Possibly there is a 3-9 month window to cash in on CC Strategy before the share price begins to reflect all the amazing positives forthcoming from Austin and Berlin, 4860, etc. Thinking about how to tweak the strategy in the face of a potential $300 rise within the next year. Certainly looking to learn from ZeApelido’s findings and our collective wisdom.

 

[ReddyLeaf]

…..my 84k loss :/. That really really hurts…..

Ouch. That’s more than my 9 months cumulative gains

I've got this stack of CC that I really want to sell (cc and call spreads) and am going to continue holding off……….looks like everybody is expecting great earnings and a corresponding jump in the share price afterwards. So 'everybody' has already positioned themselves via purchased calls and shares, taking those buyers out of the pool of people that would be buying after earnings. In fact many of them are in the pool of "going to sell right after earnings", fueling the "sell the news" dynamic.

Waiting as well, except sold 7/30 c680s @ $12.00 to 1:1 offset 7/30 p650s @ $30.00 from last week. One side or the other of those will expire worthless, hopefully both. Most likely will sell 705s Monday.

Possibly there is a 3-9 month window to cash in on CC Strategy before the share price begins to reflect all the amazing positives forthcoming from Austin and Berlin, 4860, etc. Thinking about how to tweak the strategy in the face of a potential $300 rise within the next year. Certainly looking to learn from ZeApelido’s findings and our collective wisdom.

Agreed.

 

[stealthyc]

Personally I think it's unwise to sell a CC pre earnings, especially if you think it will be a good one. I guess if IV was really high maybe, but it isn't. The best time is after a run up, not right before it might happen.

 

[buttershrimp]

Welp .. closed the options that were in the money on the runup to 648.60 ..
i fear the rest will expire worthless.

I gladly take donations to the options-gambler fund to offset my 84k loss :/
That really really hurts.. and i had the chance closing nearly all of them for next to no loss on the 700 run-up half a month ago -.-

Greed now got most of my portfolio. But i will recover. As always.

At least you aren't like Buttershrimp, living in a van.... down by the river.

 

[EVCollies]

Last week results:

Date STO	Expires	Trade	Strike	SP	Delta	Proceeds	N	Total	Adjustment
7/16	7/23	P	642	650	0.4	$1,150	7	$5,950	Closed -2100
7/16	7/23	P	610	644	0.2	$657	10	$6,070	Closed -500
7/16	7/23	C	685	644	0.2	$370	3	$1,110	Expired
						Total		$13,130

Here are my bets for next week, not advice:

Date STO	Expires	Trade	Strike	SP	Delta	Proceeds	N	Total
7/23	7/30	P	600	630	0.2	$970	12	$11,640
7/23	7/30	P	615	640	0.3	$1,370	7	$9,590
						Total		$21,230

No calls this week.

 

[AxlxA]

Last week results:

Date STO	Expires	Trade	Strike	SP	Delta	Proceeds	N	Total	Adjustment
7/16	7/23	P	642	650	0.4	$1,150	7	$5,950	Closed -2100
7/16	7/23	P	610	644	0.2	$657	10	$6,070	Closed -500
7/16	7/23	C	685	644	0.2	$370	3	$1,110	Expired
						Total		$13,130

Here are my bets for next week, not advice:

Date STO	Expires	Trade	Strike	SP	Delta	Proceeds	N	Total
7/23	7/30	P	600	630	0.2	$970	12	$11,640
7/23	7/30	P	615	640	0.3	$1,370	7	$9,590
						Total		$21,230

No calls this week.

These puts will be easy money tbh. Good luck.

 

[corduroy]

I've been trading mostly a permanent short strangle for a while now, usually weighted about 3:1 puts to calls. I finally decided to sell my first BPS on Wednesday. I went very conservative with a 7/30 +440/-520 for $2.25 credit, just to see the mechanics of the trade and watch how it reacts to price movements. I like the idea of a more defined risk and also the additional control of being able to BTC the short leg and let the long leg run (in addition to rolling) if the trade goes against me.