Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Wiki Selling TSLA Options - Be the House

This site may earn commission on affiliate links.
Rolled some 910c 02/19 to 900c 02/26 yesterday. That roll brought all my CCs to same strike and expiration.

Today I then rolled all of my 900c 02/26 down to 860c 02/26; clipped a lot of cumulative premium when I did that as these were primarily the calls I’ve been rolling since 12/31. Feels good to be off of that ladder!

On the puts side of my strangles, rolled 850p 02/19 to 850p 03/05 for a $8 credit. Just as I climb off the CC ladder, I start climbing the puts ladder. That credit also gave me enough to add 100 shares to the pile. Haven’t done that yet as I’m running close to margin maintenance right now and moving cash to shares will tip the scales.

Overall a small gain this week and now carrying two weeks of cumulative put premium, which once that unwinds will be a nice pick up.

Would love to close in the 800s again!
 
At this rate of decline, we'll be rolling our naked puts to 2023 at 300 strike price and hope we are not assigned at expiration.

It's about time for Musk to go dancing in China again.

Lets hope not. :)

I am feeling pretty good about my $780 3/5 naked puts. Not a lot (any) headroom - but I cant really imagine we dont get a slight boost next week - and with maximum pain around $800 for now I think (hope) I will ride this one out. :rolleyes:

I am still a bull at heart, and want to sell naked puts (Will time my STO better, aim at Tuesdays MMDs - and keep some margin reserves) , but its also time to buy some calls with play money.. Dont think we will slide down for much longer.
 
  • Like
Reactions: adiggs
With my 805 and 845 calls showing a realizable gain today of 65% or so I decided to close them earlier this morning at what I hope will prove to be the low point for the day (10:30am eastern). I'll be out doing errands for the remainder of the morning; with luck we'll be up from here (even if down overall) and I'll be able to re-enter both of these positions later today at a better strike / price than were available when I closed the positions.

My thinking is that with a full 2 weeks remaining to expiration I'll be able to open replacement calls with more premium to decay these two weeks. Hopefully it'll be like getting seconds at dinner
 
  • Like
Reactions: Yoona and MaxPain
The 21Jan22@1000 $132 CC prems look very tasty. 17 shares 'profit' up front and no hassle managing the weeklies.

Too good to be true. What am i missing? (I am aware one can potentially get more than $132 the next 10 months if doing multiple sells.)

Thanks in advance...
I'm not STOing any Ccs currently as I'm thinking the stock will be way above 1000 by then. I've sold a few $1650 CCs for that expiry though last time the stock spiked :p

I have acquired 400 shares the last 4 weeks STOing puts. Waiting for the bottom.
 
  • Informative
  • Like
Reactions: ReddyLeaf and Yoona
The 21Jan22@1000 $132 CC prems look very tasty. 17 shares 'profit' up front and no hassle managing the weeklies.

Too good to be true. What am i missing? (I am aware one can potentially get more than $132 the next 10 months if doing multiple sells.)

Thanks in advance...
Well, awhile back I sold some Jun 800p for $132, which seemed too good to be true (16% return for 5-6 months). They initially dropped as I’d hoped, but I was feeling like I had missed the boat, and should have bought calls/LEAPS or more stock with the cash. They reached $150 today and the March 850c that I sold around the same time has gone from being against me to almost 70% profit. Predicting the SP is tough. Maybe I’ll be fine and the SP will get back over $800 by June and stay below $850 for March, but maybe not. At this point, even my effective buy-in basis of 800-132=668 is looking in doubt, but my March 850s are awesome. I’m still at the point of trying to clear some profits from options, not optimize for maximum profits. With the SP seemingly to no longer follow recent trends, I’m hesitant to jump in with significant buying or selling.
 
  • Like
Reactions: Yoona
Too good to be true. What am I missing?

Anything that seems too good to be true usually is, but ultimately its all up to your risk tolerance. And...beating the horse, the objective of the position relative to your strategy at large. If the position is a singular, all-in kind of deal, then my strong advice is unequivocally "bad idea". If it is instead one of a diverse number of positions across your TSLA holdings, its probably not a bad idea. If it is one of a diverse number of positions across all of your holdings, then its an even less bad idea.

The upside to the position (and all sold positions) is that you can make modest to decent return with some downside protection. The downside to short positions (as with all sold positions, really, but especially long dated ones) is that it ties up a significant amount of capital, and in the event of unfavorable market movement your position gets progressively worse with the only real options being 1) hope real hard for a recovery or b) bail out at a loss. (Shorter expirations better enable c) stagnate capital by rolling.)

TLDR, If its a small amount of your total capital that you're willing to tie up for a likely modest but probable return over a long period of time, with a corollary small total impact to your account balance if you have to cut bait at a loss, and you think TSLA is going up over the next year, then go for it.
 
  • Like
Reactions: Yoona
The 21Jan22@1000 $132 CC prems look very tasty. 17 shares 'profit' up front and no hassle managing the weeklies.

Too good to be true. What am i missing? (I am aware one can potentially get more than $132 the next 10 months if doing multiple sells.)

Thanks in advance...


Those calls were $200 two weeks ago. There is no way I would sell something like that. I actually bought 5x 1050s today instead.
 
Anything that seems too good to be true usually is, but ultimately its all up to your risk tolerance. And...beating the horse, the objective of the position relative to your strategy at large. If the position is a singular, all-in kind of deal, then my strong advice is unequivocally "bad idea". If it is instead one of a diverse number of positions across your TSLA holdings, its probably not a bad idea. If it is one of a diverse number of positions across all of your holdings, then its an even less bad idea.

The upside to the position (and all sold positions) is that you can make modest to decent return with some downside protection. The downside to short positions (as with all sold positions, really, but especially long dated ones) is that it ties up a significant amount of capital, and in the event of unfavorable market movement your position gets progressively worse with the only real options being 1) hope real hard for a recovery or b) bail out at a loss. (Shorter expirations better enable c) stagnate capital by rolling.)

TLDR, If its a small amount of your total capital that you're willing to tie up for a likely modest but probable return over a long period of time, with a corollary small total impact to your account balance if you have to cut bait at a loss, and you think TSLA is going up over the next year, then go for it.

What do your technical analysis say about Tesla for the week? we are already at $720 :eek:. I have 8x $610 naked puts and some 640/620 put spreads for Friday. I sold 3x 860 covered calls early in the morning but I don't think I will sell any more calls incase the stock turns around. I am tempted about selling some shares and maybe buying some ATM calls but IV kind of picked up a little today.
 
Lets hope not. :)

I am feeling pretty good about my $780 3/5 naked puts. Not a lot (any) headroom - but I cant really imagine we dont get a slight boost next week - and with maximum pain around $800 for now I think (hope) I will ride this one out. :rolleyes:

I am still a bull at heart, and want to sell naked puts (Will time my STO better, aim at Tuesdays MMDs - and keep some margin reserves) , but its also time to buy some calls with play money.. Dont think we will slide down for much longer.

Well.. not feeling so good about those $780 5/3 puts anymore. :oops::rolleyes:

I closed 10 out of 12 naked puts this morning at $43 (close price was $75-ish, so I avoided MUCH bigger loss).. Should have sold 'em all, but I ended up keeping two of them. Since maximum-pain is $800 this and next week.. I felt it was worth a gamble.

Will let them turn into shares on margin and sell CC... to at least cover the running interest.
 
I finally managed to clear a heap of DITM CC in the last couple of weeks but now find myself having to deal with a few DITM sold Puts. I'm much happier to be dealing with Sold Puts than CC's but still not looking forward to an prolonged roll down and out if this dip is extended. The main issue is that the increased put values have closed out my margin buying power so I can't use the cash thats in my account to buy the dip.

Futures for Tuesday are looking up at this stage so we could be in for a quick partial recovery. If not I'll have to consider closing out a couple of Puts to free up buying power while TSLA is still on sale. Thankfully I have another account where I could buy some as low as $710 yesterday.
 
Well.. not feeling so good about those $780 5/3 puts anymore. :oops::rolleyes:

I closed 10 out of 12 naked puts this morning at $43 (close price was $75-ish, so I avoided MUCH bigger loss).. Should have sold 'em all, but I ended up keeping two of them. Since maximum-pain is $800 this and next week.. I felt it was worth a gamble.

Will let them turn into shares on margin and sell CC... to at least cover the running interest.

Bought back my last remaining $780 naked puts today.. paid $43 yesterday, had to pay $112 today.. and 10 minutes later they cost $145..

I am now back to HODL shares - and some margin used to cover the puts.. spent all premium from selling puts on new shares - which are now deep under water. :p But thats ok, this is temporary..

I am not exposed to any open option contracts so can ride this one out and wait for it to turn around..

Fck - had this happened in two weeks, I would have closed my naked put positions, and could have been ready to profit. :) Now, I just focused on surviving. :D:rolleyes::confused::)

Edit: Since I capitulated, I also do assume this was the bottom - so happy to sacrifice myself to end this dip.. :-D
 
Last edited:
Bought back my last remaining $780 naked puts today.. paid $43 yesterday, had to pay $112 today.. and 10 minutes later they cost $145..

I am now back to HODL shares - and some margin used to cover the puts.. spent all premium from selling puts on new shares - which are now deep under water. :p But thats ok, this is temporary..

I am not exposed to any open option contracts so can ride this one out and wait for it to turn around..

Fck - had this happened in two weeks, I would have closed my naked put positions, and could have been ready to profit. :) Now, I just focused on surviving. :D:rolleyes::confused::)

Edit: Since I capitulated, I also do assume this was the bottom - so happy to sacrifice myself to end this dip.. :-D

I have some DITM 740 puts (sold them last week). I hope I've learned my lesson from previous roll attempts and will try to roll these into 720 (still DITM, but less than the 740's) puts this thursday (assuming they don't get exercised on me!).

As of this writing the SP is slowly recovering, so thank you for your sacrifice! :p
 
I have some DITM 740 puts (sold them last week). I hope I've learned my lesson from previous roll attempts and will try to roll these into 720 (still DITM, but less than the 740's) puts this thursday (assuming they don't get exercised on me!).

As of this writing the SP is slowly recovering, so thank you for your sacrifice! :p

The chances of those ITM puts being ITM on Friday keep dropping, based upon the trend right now.

Not advice, just watching the trend line.
 
What do your technical analysis say about Tesla for the week? we are already at $720 :eek:. I have 8x $610 naked puts and some 640/620 put spreads for Friday. I sold 3x 860 covered calls early in the morning but I don't think I will sell any more calls incase the stock turns around. I am tempted about selling some shares and maybe buying some ATM calls but IV kind of picked up a little today.

wow that was stressful. I can't wait for Friday or Thursday to close all my positions. Hopefully the SP holds.
 
Really stressing the "roll ITM puts" strategy for the first time for me. I've got some upper 700's and a couple lower 800's sold Puts expiring friday that are obviously deep ITM now. Per the "adiggs rule", it's interesting to me to get to experience this playing out first hand. Gives me a much better understanding of the mechanics. I'm going to wait and see what happens over the next few days, and be prepared to roll them out and down as much as i can - i like the idea of trying to keep the role at a net credit, will see if i can manage that. Again, having experienced it first hand now I understand it much better.
 
  • Like
Reactions: adiggs
Just remember - we hit the 10% breaker rule today, so shorting was stopped during the first dip.

They cant sell short again until tomorrow? (please correct me if I am wrong)

You are wrong. They can still sell short, they just have to do it on "the up-tick". (Or use their Regulation SHO exemption, if they have one.)

And the up-tick rule is in effect until the end of trading tomorrow.
 
My short strangles are sitting at $845 -P and $875 -C for this Friday and next Friday. Was a bit nervous watching the underlying drop down to $619 this morning but my margin maintenance held up.

Planning on not making the roll decision for this week's $845 puts until Friday and likely push them out to March 12 and keep the $845 strike.
 
  • Informative
Reactions: Runarbt