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.
Ok Team Wheel, I’m looking for some advice….. what to do with a bunch of 7/30 -p650s? Sold those for $29-$30, a very nice price, about 10d ago.:cool: . . .
Good question, I’m in a similar boat. Reaping the fat premium of ATM puts is alluring and it’s tempting to think I can’t lose because either I end up with free money or discounted shares that I planned to buy anyway.

But as you point out there’s a lot of tension building in the spring - sp wedge forming, epic earnings, fsd coming to fruition, and two new factories poised to churn out beautiful cars. And maybe even a share split 😱

The biggest risk is sitting on puts when the sp rips $100 higher in a day or two. This could happen any time. I think I’m talking myself into letting my next round of puts get assigned
 
Well this didn't age well, maybe tomorrow we will test $700. Posts like this one drive me crazy. Let's not kid ourselves; no one knows what the stock is going to do. Pick strikes that make sense to you according to your analysis and methodology and be happy. Trading earnings can be very profitable but like everything else it comes with a risk.
Lol no it definitely didn't lmao. I remember I made this post too, i was quite disappointed by the stock movement and of course in hindsight missed out on a good opportunity to sell those calls. But like you say yourself no one knows what the stock is going to do. Why do posts like these drive you crazy? I merely posted because I thought we might go up. Are you not selling options here because you think the price won't go up? Are we not all just giving an opinion?
 
  • Like
Reactions: CrunchyJello
Just noticed something interesting on MaxPain for c750 trading today on the August monthly (8/20/21). Almost 19,000 contracts traded today. This sticks out as an anomaly with respect to other strikes, weeks, even open interest. Pricing is showing $2.50.

Thoughts? @buttershrimp @Lycanthrope @bxr140 Is this a bet on IV increasing around the shareholder meeting? Split? That sure looks like a possible YOLO play. I’ve got some OPM cash from selling options, that I typically just put into ~5 shares/week. Hmmmm, maybe I’ll put a couple $k into buying options.

FF6DDA54-C3C2-498A-9C4F-BCCCBC8194E0.jpeg
 
Just out of curiosity, what is your BTC criteria?
for BPS and market is trending sideways/up, it's extremely rare i BTC; rolling is my preference either to same strike(s) or diff

for BPS and market is trending down, BTC is always Market order so i can exit asap; this is regardless if i already had profit or not. Sometimes, i roll if i think market will improve next week

for IC or Strangles, i BTC when i think i have enough profits already; it's always a Market order due to the risk of Max Loss; plus, i don't have the patience to wait for Limit orders in order to save a few cents
 
Just noticed something interesting on MaxPain for c750 trading today on the August monthly (8/20/21). Almost 19,000 contracts traded today. This sticks out as an anomaly with respect to other strikes, weeks, even open interest. Pricing is showing $2.50.

Thoughts? @buttershrimp @Lycanthrope @bxr140 Is this a bet on IV increasing around the shareholder meeting? Split? That sure looks like a possible YOLO play. I’ve got some OPM cash from selling options, that I typically just put into ~5 shares/week. Hmmmm, maybe I’ll put a couple $k into buying options.

View attachment 689401

Just announced... Tesla AI Day on 8/19
 
Lol no it definitely didn't lmao. I remember I made this post too, i was quite disappointed by the stock movement and of course in hindsight missed out on a good opportunity to sell those calls. But like you say yourself no one knows what the stock is going to do. Why do posts like these drive you crazy? I merely posted because I thought we might go up. Are you not selling options here because you think the price won't go up? Are we not all just giving an opinion?
I remember mrmoos post well, and agreed with him at the time, then the next morning high high premarket volume and surging price that was cut down by very hot CPI numbers…. And poof, macros turned negative in an instant and whatever whale was buying TSLA the day prior and that premarket , decided to take a large dump in the punch bowl
 
One of the fun things about selling options is treating myself to random extravagances I wouldn't otherwise do.

I had a mobile wash/detail company come to my house today to completely clean my Model Y. It took the guy 4 hours in total and now it is beautiful again inside and out and also has a coating to protect the wrap and keep it clean. Total was with tip was $640 CAD! Tomorrow I will sell some extra OTM puts and covered calls for this and/or next week and pay for the whole thing in about 2 minutes of clicking.
 
One of the fun things about selling options is treating myself to random extravagances I wouldn't otherwise do.

I had a mobile wash/detail company come to my house today to completely clean my Model Y. It took the guy 4 hours in total and now it is beautiful again inside and out and also has a coating to protect the wrap and keep it clean. Total was with tip was $640 CAD! Tomorrow I will sell some extra OTM puts and covered calls for this and/or next week and pay for the whole thing in about 2 minutes of clicking.
Keep in mind if you do things like this, it may be prudent to take that premium money out of the trading account and into the bank account =) Otherwise it may just go poof later on heh. But yes I do this too, on a much smaller scale (Paying for nice meals and such)
 
Keep in mind if you do things like this, it may be prudent to take that premium money out of the trading account and into the bank account =) Otherwise it may just go poof later on heh. But yes I do this too, on a much smaller scale (Paying for nice meals and such)
You make a good point but to be honest it's more of a fun mental exercise. Like I can afford a $600 car wash if I want to, but I derive enjoyment out of symbolically paying for it by doing a small options sale. In the end, I just end up buying more TSLA LEAPS/shares with my options profits!
 
One of the fun things about selling options is treating myself to random extravagances I wouldn't otherwise do.

I had a mobile wash/detail company come to my house today to completely clean my Model Y. It took the guy 4 hours in total and now it is beautiful again inside and out and also has a coating to protect the wrap and keep it clean. Total was with tip was $640 CAD! Tomorrow I will sell some extra OTM puts and covered calls for this and/or next week and pay for the whole thing in about 2 minutes of clicking.
Show off
 
So according to Dodger in the main thread - he believes that the Annual Shareholders meeting will be on AI day August 19th just like Battery Day last year.
Yay, another binary IV crush coming up soon.
Going to be doing some research into positions I would like to have open right around then.
Also the BPS' that I sold on Tuesday for a little over $8 each are now down to $2.50 each.
Thinking of closing them out and opening some more for the next week, to free up some margin and capture more premium.
Will see how the market is looking this morning.
 
(rookie thinking) this i gotta try!

one can sell CC even though i don't have the shares yet? i am liking this idea of weekly prems paying down the initial debit

i am thinking to read this forum again from post #1 and take notes; there could be more gems i may have missed

thanks
Yeah it’s often called a poor man’s covered call. A short term covered call is sold against a LEAP. I believe you can even do it in an IRA.
 
Yeah it’s often called a poor man’s covered call. A short term covered call is sold against a LEAP. I believe you can even do it in an IRA.
thanks, so that's what PMCC means; i like the 'reduced risk' and 'reduced capital' part; i gotta try this

 
  • Love
Reactions: UltradoomY
Yeah it’s often called a poor man’s covered call. A short term covered call is sold against a LEAP. I believe you can even do it in an IRA.



FWIW my IRA does not allow that. I can sell calls against shares, puts against cash, and buy calls and puts for cash- but not sell calls against calls (which is effectively a spread, and not allowed)

If I try I get "You are attempting to open a covered call for a quantity greater than the amount of underlying shares held"

(this is with ML, and I have the highest option level available for an IRA with them)
 
FWIW my IRA does not allow that. I can sell calls against shares, puts against cash, and buy calls and puts for cash- but not sell calls against calls (which is effectively a spread, and not allowed)

If I try I get "You are attempting to open a covered call for a quantity greater than the amount of underlying shares held"

(this is with ML, and I have the highest option level available for an IRA with them)
IRA often doesn't allow that sort of play. It's always really safe stuff.