Playing earnings with options

[Nb1277]

Tesla will presumably report in early November. I know many of you use options for trading to augment core positions in common stock. What y'all doing in that regard for Q3 earnings?

 

[Leopold Stotch]

Buy stock

 

[teddyg]

Anybody know when the Jan 2020 calls will be out for Tesla? Do they come out after the Jan 2018 options expire?

 

[Leopold Stotch]

Anybody know when the Jan 2020 calls will be out for Tesla? Do they come out after the Jan 2018 options expire?

There’s no real for sure way to know. Depends on the option writers. Do they have a specific protocol or not. Who knows.

 

[ggr]

Of course there's a way to know.

(e) With regard to the listing of new January Long-term Equity AnticiPation ("LEAP") series on equity option classes, options on Exchange Traded Funds ("ETF"), or options on Trust Issued Receipts ("TIR"), the Series Selecting Exchange and any other exchange that lists and trades the same option class shall not add new LEAP series on that option class:
(i) Earlier than September (which is 28 months before the expiration), for an option class on the January expiration cycle;
(ii) Earlier than October (which is 27 months before expiration), for an option class on the February expiration cycle; and
(iii) Earlier than November (which is 26 months before expiration), for an option class on the March expiration cycle.

Tesla is on the March cycle. The third Friday of Jan 2020 is the 17th, so they should become available on the 17th (or maybe 18th) November.

 

[zdriver]

Buy stock

Or DITM options. Unless Elon says something like "at a 1000/wk run rate now", IV crush will kill any gains.

 

[Leopold Stotch]

Of course there's a way to know.

Tesla is on the March cycle. The third Friday of Jan 2020 is the 17th, so they should become available on the 17th (or maybe 18th) November.

I’ve been learned

 

[neroden]

Tesla will presumably report in early November. I know many of you use options for trading to augment core positions in common stock. What y'all doing in that regard for Q3 earnings?

Well, I set up for that already: I sold cash-secured short puts at high IV. If the stock drops enough, my cash-secured short puts will execute automatically in mid-November. Otherwise they won't, but I still got the premium.