Be careful,
sleep with dogs and you wake up with fleas
... AerosmithI sold Jan 24 650 CC's for like 3rd time in past 2 days ..might be the last time for a while as I need the proceeds ...
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
sleep with dogs and you wake up with fleas
... AerosmithI sold Jan 24 650 CC's for like 3rd time in past 2 days ..might be the last time for a while as I need the proceeds ...
Just sold 28/10 230 CCs
I love having CCs in play. When the stock goes down it makes me happy because they become profitable. When I think about rolling them it means the underlying is doing well.
I love having CCs in play. When the stock goes down it makes me happy because they become profitable. When I think about rolling them it means the underlying is doing well.
scubastevo80
Member
How are you guys thinking about covered calls? I'm not sure I understand for the logic on writing 650 CC's for just over $4 (long-dated). Also, is there a situation where you can't roll your way up if the stock rises too quickly? Preference in weekly, 1 month, 6 month, 1 year CCs? I'd personally like to avoid getting my shares called often.
Separately, I just bought Jan '25 $150 LEAPS this morning for $104 this morning when we were around $205.
Separately, I just bought Jan '25 $150 LEAPS this morning for $104 this morning when we were around $205.
Are your roll orders filling? I typically choose the midpoint and see them fill within minutes, sometimes a half hour. BPS rolls to Jan 24 are sitting an hour or more, the trading mid has hit my order several times now, no go.
EDIT - thanks for the suggest @wnorris . 1 BPS roll (debit) and one CSP roll (credit) filled by giving shelling out another nickel... they know what they want. Nonetheless, it never felt so good to give back credit to avoid an additional 85% loss Once this last BPS roll (debit) order fills, going to look for a good cc for next week to recover some of the outlay.
EDIT - thanks for the suggest @wnorris . 1 BPS roll (debit) and one CSP roll (credit) filled by giving shelling out another nickel... they know what they want. Nonetheless, it never felt so good to give back credit to avoid an additional 85% loss
Once this last BPS roll (debit) order fills, going to look for a good cc for next week to recover some of the outlay.
Last edited:
scubastevo80
Member
Following up on my own post - is there a return target you all have? I am looking at Jan'24 $370 CC's at $20. This would be a ~10% annual kicker/hedge for price stagnation over the next year. Or is it better to do monthly's about 20% OTM (11/18/22 $250 CC for $2.85) and compound that into about $30-35 in premium for the year if done 12 times. Still have that bad taste in my mouth from BPS on them way down, so I'm trying to be more conservative on the way back up.
.hedge against price drop (for which I will close them and wait for a bounce)
.strength in numbers. I sell against all my shares, so still can make decent gains. Right now it's just in my personal(and smaller account), but should we hit 300+...I'll likely do it against all my IRA shares as well.
.leave long runway for SP appreciation without fear(My portfolio will be up 100%+ for it to hit 650)
.can roll to Jan 25 is required, can also roll to say Jun 23 for lower strikes, if SP takes a hit and I want more $$
.it's been working for me ... most of my bet is on the SP appreciation, not looking at CC as weekly income, but more like dividend and insurance for which we get payed. Likely not best strategy if you can make more money every week, but that's a big if too .... Similar to rate lock, I want to sell when going rate is high, then no need to worry about IV fluctuations etc ..
as a novice ...
read 4 books on options trading before coming to TMC, lot's of tasty trade videos ... but mostly doing this for it's simplicity.. no need for any other patterns condors, butterflies etc etc
...cheers!! This is my bread/butter trade, has worked well for 2-3 big price drops. Other's selling PUTS, buying short term calls are very small for me and more like small income and for having more skin in game for short term trends.... still a novice
Still reading this thread offers lots of insights and lessons from all others.
Last edited:
I refuse to sell CCs down here, although I am sorely tempted because it would be great to offset all my bullish positions. But IMO the more tempted I am to sell them, the better the chance is that we are at a low. The logic that "at least the rest of my portfolio will be up" is true and at least the margin call risk isn't there, but carrying DITM CCs is only slightly less annoying than holding DITM short puts, especially for a bull.
I've had my face ripped off a few times and, yes, there are situations where you can't roll your way up - a gap up on a Monday forces you to roll to the following week, but it keeps going past the new strike and then you sit on it hoping the stock will come back down but it doesn't. The same reason a lot of us are stuck with DITM short puts, but in reverse.
Recall exactly one year ago, the Monday after Q3 results was the Hertz rally. I had -c1000 and we were barely at 900 or so the previous Friday and they still flew by my strike on the way to 1200. Would have been a great time to let them exercise, in hindsight.
I have noticed this as well in the last couple weeks when I try to roll DITM puts. Try shifting closer to the bid slightly off the midpoint. I had surprising success with small .05 to .10 cent shifts. A lot depends on how much liquidity is out there for your strikes, but getting off that midpoint seemed to work for me. Good luck.
Wow, those are great LEAPS! I paid $123 for Jan 24 c233's earlier this year
As for selling cc's from "down here", we're mostly options sellers here, not hodlers, so although we don't want to give our shares away for losses, we don't cry too much when it happens. In fact selling all my shares last year was one of the most enabling things I've ever done, removed a burden in many ways, now it's no longer a big deal
As for the rationale of selling here, well we're in a bear market, which shows no signs of reversing, so we look to make some beer-money in the meantime
Rolling? Yes, everything can be rolled and most of the time the SP will give you a chance to get out of those positions at some point in time - at least for covered positions, spreads are another beast altogether and tbh should be avoided, just din't go there
Last edited:
So, in line with what I said earlier, at open I closed out 10x -c250 for 1c and sold 10x 10/28 -c205 for $10.1, slightly early as it turns-out, but I really though we were heading down the shitter today
I decided to keep the -c220's I sod yesterday, I really don't expect those to go ITM. Not a drama if I let them exercise
Leaves me the capacity to sell 95x more contracts should I want to. Will see what Monday brings...
I decided to keep the -c220's I sod yesterday, I really don't expect those to go ITM. Not a drama if I let them exercise
Leaves me the capacity to sell 95x more contracts should I want to. Will see what Monday brings...
corduroy
Active Member
So, is anyone calling $202 the bottom yesterday?
I bought a few *sugar* puts for next week to hedge against any Monday selling by Elon.
I still have 11/18 285P to deal with, but I am going to sit on these since there were no rolls that were good until Jan....le sigh. Might get assigned these soon.
I still have 11/18 285P to deal with, but I am going to sit on these since there were no rolls that were good until Jan....le sigh. Might get assigned these soon.
These have around $0.25 - $0.30 left of time value.
I would imagine you will be assigned these overnight or Monday night unless we close around $220 which will give them $1 of time left.
I would be rolling if I was you unless you want the shares.
bkp_duke
Well-Known Member
Was just assigned 25 x Jan 2023 350-strike puts that were part of a BPS.
Fidelity auto-closed 24 x Jan 2023 325-strike puts to cover, and left 100 shares in the account. Uncertain if I will hold those or liquidate them.
These were not the full position of the BPS, 140 are still outstanding, but be warned that early assignment of some Jan 23 Puts is happening.
Fidelity auto-closed 24 x Jan 2023 325-strike puts to cover, and left 100 shares in the account. Uncertain if I will hold those or liquidate them.
These were not the full position of the BPS, 140 are still outstanding, but be warned that early assignment of some Jan 23 Puts is happening.
Last edited:
The normal/common sense approach for me was to sell far OTM leaps and buy just OTM leaps a year or so further out (basically create calendar/diagonal spreads).
e.g. sell 20 jan 24 600 CC, buy 5 Jan 25 300 calls with proceeds
seems I now have a reverse, sell Jan 24 650 CC, buy Jan 23/April 23 300 Calls. So short term calls all funded again by selling of CC's.
Will work if there is a quick price appreciation in next 3-4 mths ... let's wait and see .. cheers!!
e.g. sell 20 jan 24 600 CC, buy 5 Jan 25 300 calls with proceeds
seems I now have a reverse, sell Jan 24 650 CC, buy Jan 23/April 23 300 Calls. So short term calls all funded again by selling of CC's.
Will work if there is a quick price appreciation in next 3-4 mths ... let's wait and see .. cheers!!
I would guess the rest will be assigned tonight - they have $0.00 showing for time value
Similar threads
