Wiki Selling TSLA Options - Be the House

[kcveins]

Very quiet here this weekend so I'll share my week's activity

Sold a few 0819 1050C on Monday which expired uneventfully

Also sold 0819 900P for $9.85 on Monday and had the shares assigned to me over the weekend.
I'm watching and waiting for the price activity over the next several days to figure out what to do with these since I ended up using margin to purchase these bonus shares (have core shares I'm not touching)
I'm thinking of selling some 0826 960C and hopefully will get off margin if the stock price does what I expect it to do.... I know, famous last words

 

[CHGolferJim]

With pre-market down ~$20 at 6:30 ET, thinking to close remaining 9/2 DITM covered calls at market open, and resell later in the week up to 6 months out to recoup the closing costs and get these back OTM (expecting at least some rise through Wednesday’s split). Severely limits income opportunity on these shares, but I took income forward by selling ~ATM in the 700s, and expecting some rolls for credit. Also, possibility to roll down on dips over the period.

 

[strago13]

Last Friday I STO 840 26AUG Puts for $10 and BTC it same day for $6.95 right before market close since I thought the market might be trending downward this week. Got lucky.

I believe I am targeting opening the same thing this morning on market open...

 

[JustMe]

With pre-market down ~$20 at 6:30 ET, thinking to close remaining 9/2 DITM covered calls at market open, and resell later in the week up to 6 months out to recoup the closing costs and get these back OTM (expecting at least some rise through Wednesday’s split). Severely limits income opportunity on these shares, but I took income forward by selling ~ATM in the 700s, and expecting some rolls for credit. Also, possibility to roll down on dips over the period.

I don’t think that the open will be the low of the day, unfortunately. But I hope you’re right and the split squeezes those shorts to oblivion.

 

[BornToFly]

Not sure what to do today. I wanted to sell BCS 20+% OTM expecting a jump this week, but TSLA just seems to be following macros. Lately the best time to sell BCS for the week has been on the Monday opening pop. I might have to wait a couple days, but if the market keeps going down and takes TSLA with it, I will be kicking myself for being scared and not being more aggressive this morning. On the other hand, the worst thing I could do is get aggressive, and then kick myself as the SP climbs and I lose capital (thereby breaking Yoona's most important rule...).

 

[phantasms]

Not sure what to do today. I wanted to sell BCS 20+% OTM expecting a jump this week, but TSLA just seems to be following macros. Lately the best time to sell BCS for the week has been on the Monday opening pop. I might have to wait a couple days, but if the market keeps going down and takes TSLA with it, I will be kicking myself for being scared and not being more aggressive this morning. On the other hand, the worst thing I could do is get aggressive, and then kick myself as the SP climbs and I lose capital (thereby breaking Yoona's most important rule...).

I have no answers but know that you're not alone. If you figure something out let me know.

 

[OrthoSurg]

Not sure what to do today. I wanted to sell BCS 20+% OTM expecting a jump this week, but TSLA just seems to be following macros. Lately the best time to sell BCS for the week has been on the Monday opening pop. I might have to wait a couple days, but if the market keeps going down and takes TSLA with it, I will be kicking myself for being scared and not being more aggressive this morning. On the other hand, the worst thing I could do is get aggressive, and then kick myself as the SP climbs and I lose capital (thereby breaking Yoona's most important rule...).

I’m in the same situation as you. My sold CCs expired worthless last Friday and was looking for a Monday SP pop to sell CCs 5 DTE. Doesn’t look like it will be possible to sell into strength today X(

 

[BornToFly]

I did manage to open some 1050/1150 BCS for decent premium. Not doing anymore until we climb back to 900 and I can open 1100/1200.

 

[strago13]

Opened a 840AUG262022 Put for $11.41 and then the SP subsequently tanked

 

[BornToFly]

Opened a 840AUG262022 Put for $11.41 and then the SP subsequently tanked

Quick, sell lots of 880 CCs

 

[OrthoSurg]

I remember the good ol days when a stock split sent the stock price 5x. Now we have to sell CCs during the stock split week because the market does the opposite of what we expect based on the past

 

[intelligator]

With pre-market down ~$20 at 6:30 ET, thinking to close remaining 9/2 DITM covered calls at market open, and resell later in the week up to 6 months out to recoup the closing costs and get these back OTM (expecting at least some rise through Wednesday’s split). Severely limits income opportunity on these shares, but I took income forward by selling ~ATM in the 700s, and expecting some rolls for credit. Also, possibility to roll down on dips over the period.

Interesting. I have a single 785cc for this week , same booking of income since May but would be giving back most of the earned credit. I may roll on more week at same strike for $5 or better and let the shares get called away, buy-write after split... same aim, different road.

 

[Chenkers]

I've opened 740/780 BPS so far this week @$1.60-1.65ea. Missed a chance to day trade 900CC at the open ($16 down to $9) but there'll be other chances this week.

 

[TheTalkingMule]

Making 4.125% on a BPS you know is safe sounds pretty sweet to me!

I don't know what all the howling's about this morning. You can sell your CC's tomorrow with SP @ $920.

 

[corduroy]

I've opened 740/780 BPS so far this week @$1.60-1.65ea. Missed a chance to day trade 900CC at the open ($16 down to $9) but there'll be other chances this week.

I sold a -780p as well. I have a feeling the divisible by 3 strikes are going to be very popular this week.

 

[Max Plaid]

$TSLA getting squished with the macro, eh? Glad I sold those -c900's on Friday, bird-in-the-hand, and all that

So what's all the kerfuffle about? As I see it:

- shorties trying to sustain their bear market at the key pivot/resistance
- big FED meeting this week, in a hole apparently, everyone terrified of interest rates again
- QT incoming
- CN power issues creating lots FUD

It's tempting to sell puts down here, but really no point to take on more risk, I'll stick with my covered calls for the moment

Like the rest of us, really interested to see how premiums look after the split, better, worse, the same/3, I've no idea

 

[BornToFly]

Took advantage of the dip to roll 850CC from buy/write to next week up to 860 for $4.25 credit (which should mean another $14.25 profit on these buy/writes for next week). Buy/Writes are really fantastic when the SP is range bound or slowly moves in either direction.

 

[scubastevo80]

Wrote a 775/705 BPS this morning (8/26) for $1.50 and I have an order to close right now for $1. Will look to reopen if we get another leg down of 2+%.

 

[dc_h]

I rolled 1 870 puts from Friday to Sept 2 for $10 and one 875 call to Sept 2 for another $10 and sold a Friday CC for $8.00. Last week I rolled one of 4 Dec 16 CC's from 1100 down to 875. That is the CC I rolled out to next week. I may regret a bit if we run up to 950 this week, but my put roles have been solid and as noted, there are a lot of bearish macro issues that seem likely to hold back a big bull run.

 

[adiggs]

not-advice
I'm starting to think that the macro story has overtaken the possibility of a short squeeze or the Tesla story dominating the share price in the short term (next couple of weeks). I've been expecting the latter to dominate at least this week and probably next, but I'm starting to think its going to take some more overwhelmingly good financial results for the Tesla story to again be the dominant driver of the share price.

My plan was to more or less wait for the split to happen and see where we stood - maybe close out early if we had a really nice run into the split. We don't have the nice run into the split, but I'm sticking with the original plan and sitting on my hands / waiting for the split.


I did break the sitting on my hands thing, and sell some 900 strike calls on Friday for this week expiration. They're ahead about $10 ($20 in, $10 currently); I lean towards taking the early close / 50% gain in 1 day rather than continuing to hold for later in the week.

EDIT to add: I did it. No need to watch the last hour of trading, I realize a week of income from a 1 day trade, and I'm back to sitting on my hands. So painful. I'm afraid that I'm leaving ~$10 on the table that I'd be earning tomorrow; I really want to be wrong about that.


My bigger picture outlook for this quarter and probably next isn't changed - the macro will be more important to the share price than the Tesla story. The hard thing with this point of view is that if I'm right, then I need to sell at least some of the shares / leaps I own with a plan to buy back when the shares are back in the 700s.

I was faced with this choice a few months back with shares in the 1100s. I made a decision one day to sell at 1130. Instead of selling I sold 1100 strike cc for $48. That cc expired ~worthless when the shares dropped back below 1100. Great result on the cc - if I'd just sold though then I'd have been able to repurchase those shares in the 800s or 700s (I wouldn't have waited for the opportunity to buy in the 600s).

The current decision would be a lot easier if the shares were 1060 instead of 860