Wiki Selling TSLA Options - Be the House

[BornToFly]

Almost full day trading volume in the first two hours and the SP is up. I hope this means 200 will be a solid floor going forward.

I'm literally at risk of losing almost everything because of all margin requirements from all my BPSs. I thought I could manage them when they went ITM, but you can only roll down and out so much (ie not very much). I really think the only thing we should be trading are cash secured Puts and share secured CC like I was doing successfully before I discovered this thread (so you can't lose money).

This morning, I was forced to sell 200X CC for Jan 2024 at just a 206 strike. This will be devastating if the SP is at 400 (which I fully expect) in 2024. But I had to buy Puts (I did 200 strike for Jan 2024 because I can't afford to keep buying monthly Puts at a loss if the SP stays low).

If things don't improve, I will have to do the same for my remaining shares, meaning that I will have Jan 2024 CC at 206 on half my shares, with the other half having CC at 230, 233, and 266. F - ME!!!

 

[kabin]

I'm literally at risk of losing almost everything because of all margin requirements from all my BPSs. I thought I could manage them when they went ITM, but you can only roll down and out so much (ie not very much). I really think the only thing we should be trading are cash secured Puts and share secured CC like I was doing successfully before I discovered this thread (so you can't lose money).

Sorry to hear. Hopefully things start turning around. I think your plan makes sense especially when macros and trends start to fail. Cash secured ensures you won't get bit by the age-old options adage of 'size kills.'

 

[juanmedina]

I really think the only thing we should be trading are cash secured Puts and share secured CC like I was doing successfully before I discovered this thread (so you can't lose money).

100% when you are financially secure... what is the point of adding stress to your life. Slow and steady wins the race. I hope this turns around some by the end of the year.

 

[OrthoSurg]

Closed my 4/11 255 CCs for +75% profit this morning and sold 28/10 230 CCs 20 mins ago.

Man I love day trading CCs.

 

[elasalle]

Almost full day trading volume in the first two hours and the SP is up. I hope this means 200 will be a solid floor going forward.

I'm literally at risk of losing almost everything because of all margin requirements from all my BPSs. I thought I could manage them when they went ITM, but you can only roll down and out so much (ie not very much). I really think the only thing we should be trading are cash secured Puts and share secured CC like I was doing successfully before I discovered this thread (so you can't lose money).

This morning, I was forced to sell 200X CC for Jan 2024 at just a 206 strike. This will be devastating if the SP is at 400 (which I fully expect) in 2024. But I had to buy Puts (I did 200 strike for Jan 2024 because I can't afford to keep buying monthly Puts at a loss if the SP stays low).

If things don't improve, I will have to do the same for my remaining shares, meaning that I will have Jan 2024 CC at 206 on half my shares, with the other half having CC at 230, 233, and 266. F - ME!!!

Sorry to hear. Rooting for you.
If you are at risk of loosing everything, does it mean if you closed all positions right now ... PUTS, CALLS, stocks etc you would be in red? or would it be better that way?
selling CC's at 206 means super survival mode, count of shares etc might look like much, but end of the day portfolio has already taken hit.
All the best, I think next 2 weeks - twitter hang is there.

 

[OrthoSurg]

Almost full day trading volume in the first two hours and the SP is up. I hope this means 200 will be a solid floor going forward.

I'm literally at risk of losing almost everything because of all margin requirements from all my BPSs. I thought I could manage them when they went ITM, but you can only roll down and out so much (ie not very much). I really think the only thing we should be trading are cash secured Puts and share secured CC like I was doing successfully before I discovered this thread (so you can't lose money).

This morning, I was forced to sell 200X CC for Jan 2024 at just a 206 strike. This will be devastating if the SP is at 400 (which I fully expect) in 2024. But I had to buy Puts (I did 200 strike for Jan 2024 because I can't afford to keep buying monthly Puts at a loss if the SP stays low).

If things don't improve, I will have to do the same for my remaining shares, meaning that I will have Jan 2024 CC at 206 on half my shares, with the other half having CC at 230, 233, and 266. F - ME!!!

To encourage you, the day trader I know just came back from his trip to Sicily and he spoke with a lot of Europeans and came back, sold his TSLA shares with 100k loss because he concluded Tesla 70k cars will never go mainstream. He thinks the stock is going no where for the next 5-7 years before climbing back long term when they solved robot AI, robotaxis and solar pannel business grows.

So, from his perspective, you just did the right thing.

 

[Chenkers]

I'm literally at risk of losing almost everything because of all margin requirements from all my BPSs. I thought I could manage them when they went ITM, but you can only roll down and out so much (ie not very much). I really think the only thing we should be trading are cash secured Puts and share secured CC like I was doing successfully before I discovered this thread (so you can't lose money).

Sorry to hear this as well. Hope it all turns around soon (expect a bounce after next week once TWTR overhang is resolved).

I'm in a similar situation but haven't been able to sell CC's lately as IBKR margin calculator now puts a massive amount of Initial Margin on any multiple of CC's (not sure why?). I've been closely monitoring my overall account net liquidities (NLQ). These have been yo-yoing around due the the large amount of leverage created by the proportion of DITM distant BPS in my account. So when the NLQ gets down to towards my set limit I have to sell shares and buy back BPS's. This reduces my leverage so I could currently ride out a drop just below $150. I've been doing this today, selling around 20% of shares (that were supported by the cash from distant DITM BPS) to reduce leverage and limit the damage to my NLQ with further drops. In theory this can all be reversed on a sustained uptrend to leverage up again and accellerate the recovery of NLQ. Although in practice there will be losses due to bid/ask spread and timing. But it's ultimately the cost of managing risk and stress.

Edit: One other thing that could help is to look to buy much closer dated Puts, say next week or the week after. These will be much much cheaper than the January ones you bought but still provide a huge support to margin. Something to consider to get you out of this slump. I know my accounts would be in deep margin trouble if i didn't also have some near term bought Puts.

 

[BornToFly]

Edit: One other thing that could help is to look to buy much closer dated Puts, say next week or the week after. These will be much much cheaper than the January ones you bought but still provide a huge support to margin. Something to consider to get you out of this slump. I know my accounts would be in deep margin trouble if i didn't also have some near term bought Puts.

Shorter date works if the SP recovers. 200P for 10/28 is $4.50
For 1/23 it is $20
For 1/24 it is $44

If the SP kind of hold now, and then drops, the longer dated ones will cost even more, and I will already have paid $4.5.

That is the dilemma.

Of course, as I write this the SP is dropping and making the situation worse.....

 

[Chenkers]

Shorter date works if the SP recovers. 200P for 10/28 is $4.50
For 1/23 it is $20
For 1/24 it is $44

If the SP kind of hold now, and then drops, the longer dated ones will cost even more, and I will already have paid $4.5.

That is the dilemma.

Of course, as I write this the SP is dropping and making the situation worse.....

Try going a bit further out of the money with the Puts and buying more for less cost. It varies with different account margin calculators but with my Portfolio margin I can generally find a sweet spot that gives the same margin reduction at a lower cost.

 

[BornToFly]

Why did the markets drop?

Jesus, we aren't even half way through the trading day.

 

[OrthoSurg]

Why did the markets drop?

Jesus, we aren't even half way through the trading day.

To close my 28/10 230CCs I sold 1 hour ago for +30% profit.

I’m done for today

 

[BornToFly]

To close my 28/10 230CCs I sold 1 hour ago for +30% profit.

I’m done for today

In that case, can you please make them go back up now?

 

[Max Plaid]

Given the higher than normal volume in the first 10 minutes of trading, I'm guessing Elon did sell some shares.

Wasn't expecting this, nor am I "predicting it" now, but it would make sense of the price action.

It was relentless early-on, for sure, then after recovery the macros reversed, pfff!

 

[bballshinobi]

It was relentless early-on, for sure, then after recovery the macros reversed, pfff!

Are insiders even allowed to sell the day after ER?

Edit:

I think Elon has to wait until at least Friday in order to sell:

Edit 2: Wrong link, this is insider traidng policy for another firm.

According to: SEC

 

[vikings123]

Given the higher than normal volume in the first 10 minutes of trading, I'm guessing Elon did sell some shares.

Wasn't expecting this, nor am I "predicting it" now, but it would make sense of the price action.

Are insiders even allowed to sell the day after ER?

Edit:

I think Elon has to wait until at least Friday in order to sell:

View attachment 865809


According to: SEC

Sounds like he needs to wait until Monday morning?

 

[bballshinobi]

Sounds like he needs to wait until Monday morning?

You are right... 2 business days following the ER, so it's Monday. Hedgies must be shortselling us to the oblivion until then.

 

[WattsHappening]

Are insiders even allowed to sell the day after ER?

Edit:

I think Elon has to wait until at least Friday in order to sell:

View attachment 865809


According to: SEC

I read that as Elon can't sell until Monday (two full days after earnings are released).

Ninja'ed by @vikings123.

 

[MP3Mike]

Are insiders even allowed to sell the day after ER?

Edit:

I think Elon has to wait until at least Friday in order to sell:

View attachment 865809


According to: SEC

That link is to the policy for Friedman’s Inc. not Tesla:

 

[bballshinobi]

That link is to the policy for Friedman’s Inc. not Tesla:

View attachment 865814

Good catch... I thought it was the standard boiler plate blackout period definiton by the SEC as it popped up in my google search. Sorry!

 

[vikings123]

You are right... 2 business days following the ER, so it's Monday. Hedgies must be shortselling us to the oblivion until then.

Yeah and I think shorties doubled up after CNBC reported that firms are furiously seeking to raise equity for Musk's twitter deal including email content.

Made it sound like he is knocking on all doors and hoping to find more investors. What a *sugar* show lol. Elon's style is often brought up positively in business school discussions but tough to paint this one with a positive brush!