Any interest in playing puts? Even small positions? Or not at all?
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I also sold my call yesterday but I end buying shares. When ever I sit on cash it never works out
Volatility in the options is too low for reasons already established, so if I did puts I would buy them. I'm not bearish though, I think stock is worth $2,300 without FSD, and FSD may be coming... so I am not going to gamble on a pullback by taking an overt bearish when I think stock just needs to cool off.
Options are a ticking time bomb, so I sold the Oct calls with that in mind. I'm hoping to buy October again maybe after Labor Day. I've made $8M on short-term calls in the past 8 weeks. But I did not play weeklies.
Options are a ticking time bomb, so I sold the Oct calls with that in mind. I'm hoping to buy October again maybe after Labor Day. I've made $8M on short-term calls in the past 8 weeks. But I did not play weeklies.
Question from a rookie OTM call only buyer: if my OTM call option went exponential, approaching 100 days from expiration and up 22x - is there a chance there will be no buyers on expiration day for it?
I have no plans to exercise the call option & purchase the underlying stock but I was just scanning some options chain & noticed that some deep ITM options had no volume on this Friday.
I have no plans to exercise the call option & purchase the underlying stock but I was just scanning some options chain & noticed that some deep ITM options had no volume on this Friday.
With TSLA this is typically not a problem and pretty much never for OTM calls. Deep ITM calls are getting quite expensive so maybe interest for those will pick up after the split.
You should always be able to find a buyer by giving the option negative time value (price it less than 100 share price-strike).
More profitably, if there is a bid price, you can sell it. No volume just means no one cares enough to trade. I have some DITM that mess up my account balance due to being weeks since a trade/ price update.
I wish I had some TSLA calls alas - it's a juicy $500 Sept 21 AAPL call trading @ $70+ now.
Really my question is when is the call too expensive for potential buyers? Value of underlying stock + premium is $570/shr today & 389 days till expiration - is there a formula on when it is NOT worth it for me to keep cause it's too rich for any buyers?
So basically price it cheap enough to lure bidders?
The website Options profit calculator is great for running scenarios (though the IV side of things is up to you, I think) .
Yeah, if they are ITM, they have a value of at least 100 shares of stock - strike. Someone (or their algo-bot) will bite if you price low enough.
FWIW, IMHO it is irrelevant what other buyers are interested in relative to contracts we're holding. Its the market makers with whom we're transacting anyway, and they're always willing to cut a deal. One can always sell at the bid and one can always buy at the ask. One might not like the spread, but its there for a reason. Eating much/most of the B/A spread in both directions is simply the price of trading options.
The formula for closing out long calls/puts is really the same as any other position--its all about where you are relative to your price targets (unless you're just going B&H with leaps). If you hit your underlying price target, close your position or at least tighten up your exit stop loss. There's no glory in a sharp downturn FOMOing away profit. If you're closing in on expiration (like, less than a month or so) but want to stay in the position, roll the contract(s) out a few months.
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@bxr140 or @paydirt76 a question for you based on what I observed today.
IV was in the low 80s range last Friday. This morning as I was reviewing some numbers I noticed that had jumped to low 90s. And when I say morning I’m talking about pre market hours around 8 AM EST. Sure enough when regular hours trading opened there was more volatility then we have seen in the recent past with TSLA stock. Or maybe IV went up on last hour of trading on Friday and I did not notice?
Did the IV change because this is the last week of trading before the split? How did the IV suddenly gap up just like underlying stock? Thanks for responding.
IV was in the low 80s range last Friday. This morning as I was reviewing some numbers I noticed that had jumped to low 90s. And when I say morning I’m talking about pre market hours around 8 AM EST. Sure enough when regular hours trading opened there was more volatility then we have seen in the recent past with TSLA stock. Or maybe IV went up on last hour of trading on Friday and I did not notice?
Did the IV change because this is the last week of trading before the split? How did the IV suddenly gap up just like underlying stock? Thanks for responding.
IV is a function of underlying movement, so it does make sense that it would go up with increased movement, and it makes sense that IV would gap off an overnight based on discontinuous calculations (as opposed to, say, futures). So, nothing seems to be out of place. Not sure if that answers the question.
For funsies, I plotted IV and standard 20 day BB (in this case, BBW) to show how they're kinda correlated in magnitude and direction.
In the past year IV was highest around the March drop and the next highest was during July. I guess there are too many catalysts in the near future to be able to predict how high it can go. In general though I do expect it to trend higher and potentially reach July highs.
I'm waiting till post split. I have a feeling we see $300-$350 post split as folks sell a portion of their holdings and take profits.
The computers are always watching every strike of the Tesla options. If you were go in with a limit order to sell at the midpoint of bid/ask, you may be able to get a fill, if you don't you can walk it down until they fill you.
MTBEndodontist
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Now is not a great time to buy TSLA contracts. IV is hitting the July peak.
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