Wiki Selling TSLA Options - Be the House

[mongo]

I was assigned this morning as well for puts $383.33 exp 11/18.

I've had puts DTTM before and never assigned 6 weeks out. Wonder why all these puts are being assigned? Is this an expectation of the bottom? Is money flowing back into the market?

For US:
Selling to close puts would be short term gains if they were purchased in last 12 months.
If the stock was purchased below the current price, that sale would also have gains tax.

Executing the puts makes the stock sale long term gains if the shares were held over a year, and the gains are reduced by inital cost of the put. So no short term tax to pay from the put appreciation.
Can rebuy stock as separate trade and restart the clock.

Execution: Strike-option_inital-stock_initial
Sale: option_final-option_initial+stock_final-stock_inital
Execution-sale = Strike-option_inital-stock_initial - (
option_final-option_initial+stock_final-stock_inital)
Execution-sale = Strike-option_inital-stock_initial -
option_final+option_initial-stock_final+stock_inital
Execution-sale = Strike - option_final - stock_final

At 0 extrinsic: Strike=option_final+stock_final
Execution-sale = option_final+stock_final - option_final - stock_final
Execution-sale=0
Execution = sale
Same return, so tax treatment is key.

 

[john tanglewoo]

For US:
Selling to close puts would be short term gains if they were purchased in last 12 months.
If the stock was purchased below the current price, that sale would also have gains tax.

Executing the puts makes the stock sale long term gains if the shares were held over a year, and the gains are reduced by inital cost of the put. So no short term tax to pay from the put appreciation.
Can rebuy stock as separate trade and restart the clock.

Execution: Strike-option_inital-stock_initial
Sale: option_final-option_initial+stock_final-stock_inital
Execution-sale = Strike-option_inital-stock_initial - (
option_final-option_initial+stock_final-stock_inital)
Execution-sale = Strike-option_inital-stock_initial -
option_final+option_initial-stock_final+stock_inital
Execution-sale = Strike - option_final - stock_final

At 0 extrinsic: Strike=option_final+stock_final
Execution-sale = option_final+stock_final - option_final - stock_final
Execution-sale=0
Execution = sale
Same return, so tax treatment is key.

I may have to re-read this 20x to understand properly

 

[mongo]

I may have to re-read this 20x to understand properly

So did I, and I wrote it...

 

[elasalle]

...was able to sell 2 jan 23 PUTS at $200 for $12 (using some new money, been more than 4 years since I actually deposited money into account, has all been withdrawals )

closed another batch of Jan 24 CC's in 700's for ~4 .... got me another 27K in profits. Selling longer dated CC's really helps/works on these super dips.
Hoping for no covid related shutdowns this quarter, everything else should work out ...

 

[BrownOuttaSpec]

What the heck was that????? Huge drop out of no where. Someone didn't like us being that close to max pain I guess. First it shot up to $257 and then got smacked down to $251 instantly.

 

[ReddyLeaf]

Anyone planning selling CC's at strikes (far) below avg cost should we stay at these SP levels?
As it stands, I'm considering going to a 280 strike with a 300 cost base, because that still seems manageable short term if needed.
Any *not advice*?

Yes, just sold -c255s and -c260s in various accounts. Also rolled some -p270s down to -p260s to complete the straddle. Was also assigned a -p300 this morning (as expected because I didn’t have enough cash to roll it forward). Perhaps dumb trades. Still holding 10/21 -p/c300s in another account (again, not enough cash to roll, though perhaps the SP will continue climbing and I’ll have a chance in two weeks). Edit: All in IRAs, CCs/CCPs, no margin. Also, I’ve decided that I cannot predict the SP (other than to get it wrong while trading), so will focus on selling ATM straddles and trying to keep them ATM.

@BrownOuttaSpec said:

What the heck was that????? Huge drop out of no where. Someone didn't like us being that close to max pain I guess. First it shot up to $257 and then got smacked down to $251 instantly.

Lunchtime smack down. PB&J in the face.

 

[bballshinobi]

What the heck was that????? Huge drop out of no where. Someone didn't like us being that close to max pain I guess. First it shot up to $257 and then got smacked down to $251 instantly.

Elon decided to go through with Twitter deal

 

[Max Plaid]

Elon decided to go through with Twitter deal

https://twitter.com/x/status/1577329137936654337

 

[bballshinobi]

Elon will always save your CC lol

 

[john tanglewoo]

Not sure how this will affect TSLA stock, didn't Elon already sell all of his shares?

 

[Knightshade]

Not sure how this will affect TSLA stock, didn't Elon already sell all of his shares?

You mean all shares needed to buy twitter?

Depends on if any of his other financers back out or not. Elon is on the hook either way so would have to personally make up the shortfall.

 

[OrthoSurg]

Elon will always save your CC lol

Sold 75x 270 7/10 CCs at 10 AM, closed them at noon for a +50% profit thanks to Elon.

I wanted to sell the 1500 shares I got assigned and sell a 416.67$ puts expiring next September but I don’t even see the signed shared or the assignèrent yet in my account.

 

[scubastevo80]

Sold BPS 210/190 for 10/7 at $0.66 right after the open. Will close if I get the 50% gain today, which is now looking unlikely.

Double-dip Tuesdays. Closed these this morning at $0.07, bought them back at 1pm at $0.25.

 

[OrthoSurg]

https://twitter.com/x/status/1577329137936654337

 

[ZsoZso]

https://twitter.com/x/status/1577329137936654337

I have an option pricing question related to this.
I have some $50 strike price TWTR calls with Oct.21 expiry.
If the deal is confirmed, TWTR price should converge to $54.20, which would make the 50C intrinsic value roughly $4.20
Would it have any time-value at all ? Twitter will go private, so no possibility of further price growth possible.

 

[mongo]

I have an option pricing question related to this.
I have some $50 strike price TWTR calls with Oct.21 expiry.
If the deal is confirmed, TWTR price should converge to $54.20, which would make the 50C intrinsic value roughly $4.20
Would it have any time-value at all ? Twitter will go private, so no possibility of further price growth possible.

First question is if it ever trades again.
If it does, time value may be capped around 54.20-stock_price. Could be lower though since, until the deal happens, there is risk.

Edit: seems like it would have trade again to allow people access to assets. At least until Friday/Monday which may be the deal execution.

 

[BrownOuttaSpec]

Rolled my 11/16 BPS 283.33/350 to 12/16 at the same strike prices today during the TWTR news. I was flirting with 0.2 extrinsic on my November positions and luckily they didn't get assigned last night like others did. It took a small debit to roll them but I feel like it bought be enough time for the stock to start to recovery and should be able to roll out to next year for a credit at some point.

Who would have thought in Feb that $350 (x3) would have been so hard to get to by this time of the year.

 

[MikeC]

Holding -p245/210, straight rolled -p300 to 10/21 but still holding a few.

Reluctantly sold -c250 on the drop today in addition to -c265 sold earlier. Feels like the only way to get my -p245 to actually expire is to sell a covered call to tempt the SP higher.

 

[phantasms]

Holding -p245/210, straight rolled -p300 to 10/21 but still holding a few.

Reluctantly sold -c250 on the drop today in addition to -c265 sold earlier. Feels like the only way to get my -p245 to actually expire is to sell a covered call to tempt the SP higher.

Thank you for your service!

 

[BornToFly]

This morning I thought my 388 Dec short legs were going to be safe after surviving last night. Now with the Twitter news they are in danger again. Nothing to do but watch and wait. If we have red macro days the rest of the week things could get ugly.