Wiki Selling TSLA Options - Be the House

[CrunchyJello]

Maybe i'm confused about how this works. If the strike is $600 and the premium is $254 that is a total of $854 to break even, and with current price at $730 that means $124 extrinsic value, no?

The $254 is for the 100 shares , right?
Adding it to the strike doesn’t mean a whole lot (at least not to me).

 

[ammulder]

The $254 is for the 100 shares , right?
Adding it to the strike doesn’t mean a whole lot (at least not to me).

No, it's per share -- $25,400 per contract (they're well in the money).

 

[CrunchyJello]

No, it's per share -- $25,400 per contract (they're well in the money).

Thanks; I missed the context of the post.

 

[Discoducky]

Hard for me to complain about buy & hold. I wouldn't be where I'm at today without it (original shares with a 5.47 cost basis).

What we've learned and are doing here isn't for everybody. Or as I've been discovering not even for most. My belief is that you need to actually enjoy the process, over and above the education and study, to do this well. It's too much effort to make yourself do this well, day after day; week after week. Especially if you're thinking about this as something to continue doing for years.

Dude, well said! My wife and kids are absolutely amazed by this, my tech friends think I'm crazy (nothing new there but they also can't wrap their heads around it; I can barely and not at all on the BPS stuff to be perfectly honest) and my other trading friends are just now getting into TSLA from SPY and SPX.

Meanwhile, waiting for a last minute SP rise in order to put in my last STO 9/10 10x $730.

I BTC 40x $720 to $740 today for an average profit of ~60%. Many of these were negative yesterday Thanks again to folks on this thread for helping me through rough waters.

Next week I think we'll hit MaxPain and stay below $735 by 9/10.

9/17 exp week is going to epic I think. Based on how next week goes, I might be STO at least 30x $710 to stay behind the huge call wall at $700.

 

[AquaY]

Anyone in the US have a Roth that allows them to sell covered calls against long calls (have to be ITM?)? My broker has initially responded that I can’t do it in my Roth.

as you know the difference between a Roth IRA and a Traditional IRA is the Roth is after tax dollars contributions. Seems to me if anything they should be even more permissible than a traditional IRA for that matter.
Did he say that it is permissible in a traditional IRA?

 

[Discoducky]

Yes. I have level 3 with spreads. In E*TRADE.

Same here, but I don't think I've ever used that much. I've never even come close to opening calls on even 50% of my shares. Do they use DITM LEAPs first or long shares first?

 

[Discoducky]

Ok, so others may know this, but I'm surprised as I want to get my break even point at or slightly above $735 for 9/10.

I'm wanting to STO 10x and if I choose $730 strike my break even is ~$737 and premium is about $7k.

But if I choose $720 break even is $736 and premium is $16k?

And better yet is $715 with break even is $735 and premium is $20k.

I don't think I'd get assigned even at $715 strike on 9/10 if SP was $735. or at least that is what I'm telling myself as I hover of the execute button.

 

[AquaY]

Ok, so others may know this, but I'm surprised as I want to get my break even point at or slightly above $735 for 9/10.

I'm wanting to STO 10x and if I choose $730 strike my break even is ~$737 and premium is about $7k.

But if I choose $720 break even is $736 and premium is $16k?

And better yet is $715 with break even is $735 and premium is $20k.

I don't think I'd get assigned even at $715 strike on 9/10 if SP was $735. or at least that is what I'm telling myself as I hover of the execute button.

You're talking about selling calls right?
Why would you not be assigned with a $715 strike if the SP is @ $735? That's $20 ITM. The premium paid is irrelevant.

 

[bkp_duke]

Side note and a little on topic....
I hate waiting for a fill.... placed my IC order just below mid point of the bid/ask and waiting for it to fill feels like eternity!

Changed up my spread to wider wings and wider body

09/17
-$650 / +$630
-$785 / $805

Credit $2.10 per contract

Are you planning on tightening the range between the wings as the expiration nears?

I'm debating something like what you have done, but also considering just opening an IC for 9/10 expiration and then repeating again for the 9/17 expiration.

Decisions decisions.

 

[UltradoomY]

Ok, so others may know this, but I'm surprised as I want to get my break even point at or slightly above $735 for 9/10.

I'm wanting to STO 10x and if I choose $730 strike my break even is ~$737 and premium is about $7k.

But if I choose $720 break even is $736 and premium is $16k?

And better yet is $715 with break even is $735 and premium is $20k.

I don't think I'd get assigned even at $715 strike on 9/10 if SP was $735. or at least that is what I'm telling myself as I hover of the execute button.

Adding on to what @AquaY just said - you will be assigned if the contracts are even $1 ITM.
Premium paid plus share cost is for you only.
So you are "technically selling them at $715 but receiving $736 in total compensation.

 

[UltradoomY]

Are you planning on tightening the range between the wings as the expiration nears?

I'm debating something like what you have done, but also considering just opening an IC for 9/10 expiration and then repeating again for the 9/17 expiration.

Decisions decisions.

I am not, I will be closing out whichever side is 80% profit (if it happens next week) and reselling that side when conditions improve.
Or just keeping the left over side and start a new position.
Typically don't like to mess with a position too much, just close it out if profit is above 80% and look for the next opportunity.

 

[Discoducky]

Adding on to what @AquaY just said - you will be assigned if the contracts are even $1 ITM.
Premium paid plus share cost is for you only.
So you are "technically selling them at $715 but receiving $736 in total compensation.

Yeah, you are both right, my bad. See, that's why I type stuff out, cuz it ain't all unicorns and rainbows...

I meant that I wouldn't get assigned, hopefully, before rolling to next week.

 

[CHGolferJim]

as you know the difference between a Roth IRA and a Traditional IRA is the Roth is after tax dollars contributions. Seems to me if anything they should be even more permissible than a traditional IRA for that matter.
Did he say that it is permissible in a traditional IRA?

He’s asking the custodian. Will advise.

 

[MP3Mike]

He’s asking the custodian. Will advise.

E*TRADE made me sign a form having to do with possible tax repercussions before they would enable it.

 

[Discoducky]

I'm in for STO cc 40x 9/10 $45k premium

20x $720 Roth
10x $735 Trad IRA
10x $745 Personal

 

[ReddyLeaf]

BTC my 730cc @ $0.40 - STO for $4.645. Gonna relax over the weekend and figure stuff out for Tuesday.

Could I have waited for expiry or $0.01 - sure. But I'm going to have dinner with my family now, and that's worth more!

Ahhh, that didn’t age well.

 

[Cherry Wine]

Very interesting close.

 

[bubb]

Wow @ the 9/3 730C bottoming an hour ago at a penny and closing just under $4!

 

[ZeApelido]

This thread is full of a bunch of degenerates.








That's a compliment.

 

[FS_FRA]

Ahhh, that didn’t age well.