I am currently still holding my 750/770 spreads, might close at end of day if in a good position though
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
AquaY
Member
It can't be a cc and a naked call at the same time.
I think I follow you but you are actually saying you are considering writing a naked call for next week. Saying STO 750cc is frankly, wrong.
After tomorrow if you close or let the 735 cc expire your short call will turn into a covered call but it isn't until that happens.
That's an important distinction and not just semantics.
It means you have to have level 4 option trading approval I believe. Do you?
if not, then it doesn't matter because your brokerage firm won't allow it.
Personally, I only have level 3 approval so I couldn't even do it.
Generally speaking I don't think I would write a naked call even if it was for such a short time.
I'd consider writing a vertical call spread if I had strong conviction that I wanted to sell calls for next week today.
But what is your thoughts on the SP for today, tomorrow and Tuesday?
Do you feel strongly that Friday will have downward pressure on the SP putting your calls OTM and this will continue into Tuesday's opening making selling calls today a significantly higher premium?
I think if I felt that way I would do a vertical call spread for next week and watch the SP closely tomorrow in order to close them out if needed.
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This dynamic is exactly the same way I think about cc.
More specifically once I arrive at that mental state where I'll have my shares called away, then I start asking myself if I'd rather be called away in the current position or the position I can roll to. I personally will mostly be in favor of another week of $1 credit plus a $10 better called away price. That sounds pretty awesome in fact.
It starts sounding a lot less awesome when it's a $1 credit and wait a week with no strike improvement.
Still watching some 740cc aging down. These are around 40% profit right now but they're varying between 60 and 20% and time is working pretty hard for me right now, so I'm still letting them go. I'll watch the shares today but I'm thinking it'll be tomorrow or at least late today before I move out to 9/10 with a new cc position.
On the put side I've been out of the market all week. The positions I closed on Monday would be north of 90% by now if I'd waited, but no regrets or second thoughts there. I closed early for >60% and was ready to reenter immediately. That opportunity didn't arise - it happens - and I decided to get into new BPS today rather than waiting for tomorrow, entering 630/710s and 640/720s. The latter is in my aggressive account while the others are less so. With IV getting to be so low I'm starting to think again about 2 week options. These puts were chosen as I still consider 700 to be strong support and these are close enough that I'm confident I can roll back down should the need arise.
I was considering doing something much more aggressive - like 730p or 740p as I think we'll be up that much next week. And then I reminded myself that this is for income and asked whether such a position would be consistent with income. I dialed it back
On the put side I've been out of the market all week. The positions I closed on Monday would be north of 90% by now if I'd waited, but no regrets or second thoughts there. I closed early for >60% and was ready to reenter immediately. That opportunity didn't arise - it happens - and I decided to get into new BPS today rather than waiting for tomorrow, entering 630/710s and 640/720s. The latter is in my aggressive account while the others are less so. With IV getting to be so low I'm starting to think again about 2 week options. These puts were chosen as I still consider 700 to be strong support and these are close enough that I'm confident I can roll back down should the need arise.
I was considering doing something much more aggressive - like 730p or 740p as I think we'll be up that much next week. And then I reminded myself that this is for income and asked whether such a position would be consistent with income. I dialed it back
You might also notice that my spread size shrunk this week. I chose the $80 spread size as something I'm comfortable with (really important) as well as I see this as providing effective management (should the need arise) down to 670 or 680.Still watching some 740cc aging down. These are around 40% profit right now but they're varying between 60 and 20% and time is working pretty hard for me right now, so I'm still letting them go. I'll watch the shares today but I'm thinking it'll be tomorrow or at least late today before I move out to 9/10 with a new cc position.
On the put side I've been out of the market all week. The positions I closed on Monday would be north of 90% by now if I'd waited, but no regrets or second thoughts there. I closed early for >60% and was ready to reenter immediately. That opportunity didn't arise - it happens - and I decided to get into new BPS today rather than waiting for tomorrow, entering 630/710s and 640/720s. The latter is in my aggressive account while the others are less so. With IV getting to be so low I'm starting to think again about 2 week options. These puts were chosen as I still consider 700 to be strong support and these are close enough that I'm confident I can roll back down should the need arise.
I was considering doing something much more aggressive - like 730p or 740p as I think we'll be up that much next week. And then I reminded myself that this is for income and asked whether such a position would be consistent with income. I dialed it back
Thinking about it in these terms I could probably have gone down to $60 spread size (with a corresponding increase in the number of contracts). That would still allow effective management down to 680 and 690, both below the strong support level I see. In fact the $60 spread size would have been especially appropriate for the aggressive account for a 660/720 spread. I'll be thinking in those terms for the next one of these.
Still watching some 740cc aging down. These are around 40% profit right now but they're varying between 60 and 20% and time is working pretty hard for me right now, so I'm still letting them go. I'll watch the shares today but I'm thinking it'll be tomorrow or at least late today before I move out to 9/10 with a new cc position.
On the put side I've been out of the market all week. The positions I closed on Monday would be north of 90% by now if I'd waited, but no regrets or second thoughts there. I closed early for >60% and was ready to reenter immediately. That opportunity didn't arise - it happens - and I decided to get into new BPS today rather than waiting for tomorrow, entering 630/710s and 640/720s. The latter is in my aggressive account while the others are less so. With IV getting to be so low I'm starting to think again about 2 week options. These puts were chosen as I still consider 700 to be strong support and these are close enough that I'm confident I can roll back down should the need arise.
I was considering doing something much more aggressive - like 730p or 740p as I think we'll be up that much next week. And then I reminded myself that this is for income and asked whether such a position would be consistent with income. I dialed it back
IV is getting depressingly low.
AquaY
Member
interesting. I went somewhat similar but more conservative.On the put side I've been out of the market all week. The positions I closed on Monday would be north of 90% by now if I'd waited, but no regrets or second thoughts there. I closed early for >60% and was ready to reenter immediately. That opportunity didn't arise - it happens - and I decided to get into new BPS today rather than waiting for tomorrow, entering 630/710s and 640/720s. The latter is in my aggressive account while the others are less so. With IV getting to be so low I'm starting to think again about 2 week options. These puts were chosen as I still consider 700 to be strong support and these are close enough that I'm confident I can roll back down should the need arise.
I was considering doing something much more aggressive - like 730p or 740p as I think we'll be up that much next week. And then I reminded myself that this is for income and asked whether such a position would be consistent with income. I dialed it back
Initially I had planned to write BPS Friday but I'm thinking it being the beginning of a 3 day Holiday weekend liquidity will be down and executions worse.
I STO 600/695 as my main trade for 9/10 and a smaller more aggressive ( for me) 610/710 as well.
Just got out of my 9/3 cc's $740 for 78% profit. Tomorrow I'll most certainly be rolling the $720's and $730's Friday and most likely next Friday as well. These are both under a bit water at the moment...
Hopefully the triple witching 9/17 huge $700 call wall holds!
Almost back down to 730. Quite the beat down this afternoon - wonder if it will bounce off that for long?
Buckminster
Well-Known Member
Wow, just seen it for the first time. Max pain is 650! Thats going to be an interesting week.
+1 to that. This is the most exciting options time I can remember in a while.
I just don't see how that wall will fall, but whoever is holding those will put up a fight, maybe they sell a bunch of puts at $710?
As a newbie in this game, I'd be very interested in how you would position yourself for that event? That 700 call wall seems practically impenetrable. Is it as simple as selling cc as close as comfortable to 710?
AquaY
Member
Maybe Max pain just updated 3:01PM and it shows 660
Attachments
Max pain only updates once a day at 7am EST.
The $660 has not changed since I posted my thoughts on the subject of the triple witching yesterday.
Take a peek.
Wiki - Selling TSLA Options - Be the House
I've flirted with this idea as well, and gave it a try. But I think I will stick with this advice from now on: Most beginner options traders try to “leg into” a spread by buying the option first and selling the second option later. They’re trying to lower the cost by a few pennies. It simply...
teslamotorsclub.com
Took my 740cc for this week off the table at ~70% profit. I see no reason to stretch into tomorrow for any of the remaining 1.60, and will be looking to open 9/10s tomorrow.
I might even go crazy and add on some call spreads to go with the put spreads I have open right now, legging my way into an IC. The call premiums are so small relative to put spreads that I'm more likely to continue watch from sidelines as far as call spreads go.
I might even go crazy and add on some call spreads to go with the put spreads I have open right now, legging my way into an IC. The call premiums are so small relative to put spreads that I'm more likely to continue watch from sidelines as far as call spreads go.
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