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Wiki Selling TSLA Options - Be the House

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You open your IC usually midweek, correct?
It mainly depends on the outlook for the week ahead and particularly how the Options OI chart is looking. If there's likely to be a big move early in the week or a choppy OI chart then I will hang back and look for things to settle. I can generally still get good premiums with a higher confidence in ranges on Wednesday or even Thursday some weeks. But if I have higher confidence I will open an IC earlier in the week, say Monday or Tuesday if possible as the premiums are better. Tuesday would be more common but its been less predictable of late. Sometimes I will open some positions on a Tuesday and add further on Wednesday with maybe a different range depending on where things have moved.

I will also look for a dip to one side of the expected trading range and open there as a stronger Put side premium with a rising stock price through the week is ideal. I'm also looking for opportunities to add CC, BPS or BCS. With CC and BCS they have the added benefit of increasing my overall margin available.
 
the Nov -930c cancels out the theta of the dec +900c, the -730c/750c are backed by the +700c, the dec 1200 is a moonshot.
sep 700/600 BPS is for living-money, 710/670BPS this week is for cherry on top ;)
that is very interesting way of looking at it: sum up theta across positions to see overall profitability... and since theta is exponential, then profit will just grow over time. Thanks for the management tip!
 
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that is very interesting way of looking at it: sum up theta across positions to see overall profitability... and since theta is exponential, then profit will just grow over time. Thanks for the management tip!
also the -930c were STO @11, BTC order @5 is already placed.
Depending on the SP i will then STO dec 1100c to turn the dec 900c into a bull call spread.

Also i like when my portfolio is +12% with SP being +8pts (or 1.2%) .. talk about leveraging .. :D
 
Just throwing this out there. I sold a bunch of 9/3 720c (slightly ITM), with the thinking that, "even IF max pain doesn't bring the SP back down to around 700 this week", the 700 call wall during triple-witching (9/17) "should" ensure that I can roll it out for some credit thereby averaging me ~$6/week of profit for the next 3 weeks. That's my most aggressive trade ever! Now to keep fingers crossed.
 
Just throwing this out there. I sold a bunch of 9/3 720c (slightly ITM), with the thinking that, "even IF max pain doesn't bring the SP back down to around 700 this week", the 700 call wall during triple-witching (9/17) "should" ensure that I can roll it out for some credit thereby averaging me ~$6/week of profit for the next 3 weeks. That's my most aggressive trade ever! Now to keep fingers crossed.
Nice, I was thinking the same thing! That 700 wall is huge!

EDIT: Ok, I'm in for STO 10x 9/3 $720c
 
Shares up $17ish - time to consider closing put spreads and selling lcc's.

The short puts for this week (all 700 strikes, various spread sizes from $70 to $200) I closed for around $3.25 - roughly a 2/3rds profit. I opened these on Thursday thinking today's move might happen on Friday and I wanted to be sure that I got in on that. I also left the long side of these puts open for now. I want to think more about what to do with those and my time to follow this is limited today - if I do nothing then the $ involved are small and I like the idea of exploring my options around establishing the long side of the put spread for next week at a relatively good price, with the short side coming later.

If we get a down day tomorrow then I'll already have my insurance in place for a second batch of BPS for expiration this week.


All in on lcc's when the shares were around $17 ahead, collecting ~$6 on the 740 strike for this week. While writing this up I glance back and see that these are 30% ahead in like 5 minutes or something. I'm going to go eat breakfast and get ready for an afternoon of errands and see how these go. I might need to close them today...
 
SOmething I've noticed is TSLA LEAP calls, the 3/2022 1300c for example (which I'm shorting a lot), are crashing today even though the stock ran up. In the past, more likely than not this signaled a pullback ahead. This could also be due to TSLA's 30D IV shedding 2.1%, which also often coincides with pullbacks.
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this will seem random, but I was reading today about how to hedge market risk and curious if has anyone ever used or heard of using “unit puts” or OTM VIX calls as a form of hedging black Swan events of large market risk? Apparently this is done by devoting 5-10% of trading capital to shitputs that are insanely cheap, or VIX calls OTM…. Seems pretty sweet idea if I actually knew what the duration and strike distance should look like. The other trick is knowing how to redeem that value during an event.
Mark Spitznagel in "The Dao of Capital" recommends a strategy of monthly purchasing put options 2 months out that are 0.5 delta (if 40% IV, 30% OTM ). Target is spending 0.5% on puts every month. The strategy loses small amounts of money regularly, but in times of stress it really prints. As crazy as it sounds, this strategy outperforms the S&P in the long run by 200 basis points, even if it can seemingly underperform for a while.
 
Mark Spitznagel in "The Dao of Capital" recommends a strategy of monthly purchasing put options 2 months out that are 0.5 delta (if 40% IV, 30% OTM ). Target is spending 0.5% on puts every month. The strategy loses small amounts of money regularly, but in times of stress it really prints. As crazy as it sounds, this strategy outperforms the S&P in the long run by 200 basis points, even if it can seemingly underperform for a while.
So - I am having a hard time putting this on a simulation -
For it to be 0.5 delta that would be a $735 10/15 or a $745 11/19 put which is certainly not 30 % OTM.
Is there more to it?
Do you go with 30% OTM or the 0.5 delta.
The IV is running 44 for the November side and 39 for October
 
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