Wiki Selling TSLA Options - Be the House

[traxila]

Anyone buying weekly PUTS as insurance? If so, can you share approaches?

Buy cheap way OTM puts two or three or four weeks out. Props up my margin. Have also bought weekly puts ATM and close them when they show profit, which has been too common. Worked great with this latest China nonsense. Also have been selling ATM CCs with June 24 expiration to get more cash. Have closed a few when they show profit. Try to make up for it by slowly accumulating OTM calls expiring in 24.

Trying to decrease margin to a point where a drop to 150 won’t wipe me out. Cheap puts work great for taking pressure off. Bought 0.40 centers expiring in a couple of weeks on regular basis. Been able to pay for them plus with ATM puts. Also close them out before zero as I have opened others farther out in time.

Hope this reverses soon. 4Q should deliver, but who knows?

 

[vikings123]

Anyone buying weekly PUTS as insurance? If so, can you share approaches?

Yes. I have been experimenting with a few different put strategies. Overall I think I’m only slightly positive but gives me the peace of mind that if something unexpected were to happen I’m covered.

1. Buy puts 10-15% OTM for half of my TSLA shares on Thursday/Friday for the following week’s expiry. I will keep these positions open for the rest of the week unless there is an unexpected dip on Monday morning like what happened this week. I sold half of my 190$ puts at open and sold the rest when we dipped below 200.
2. Buy some puts(much smaller scale as compared to above) on a very Green Day just because we know what’s going to happen next. Like towards the end of the day I risked like 0.1% of my portfolio to protect against any downside.

Results have been mixed so far but holding puts over the weekend gives me peace of mind. I’m only paying like 0.25% of my portfolio value as premium. So for example on a 1 million portfolio you would risk about about 2500$. Some of this gets funded by 15% OTM calls I sell at the same time. I’m only doing this now because of the uncertain environment we are all in from a macro perspective; China, Russia, Economy etc.

Both strategies require active management of your positions. When I profit from these puts I will sell 50% to lock in the gains and then another 25% if it drops further. And keep a runner open.

Having said that we might be very close to the bottom but I will still continue to buy some puts going into the weekend as it helps me sleep better

 

[Max Plaid]

Just sharing if anyone is in the same boat. On the bench sitting on shares from exercised puts at 300 strike. Held for p&d and earnings. I don't have the confidence in playing the call side of the wheel so far down my cost.

Yeah, I hold a lot of TSLA with $300 cost basis, I got suckered into believing Q3 results world send the stock soaring… whoops!

Strategy I’m either selling 100x way OTM shitcalls - looking for $1 on those, or 10x ATM cc’s - 1000 of my shares were exercised -p240’s, so I’mok to sell them around the 220 range

 

[phantasms]

Yeah, I hold a lot of TSLA with $300 cost basis, I got suckered into believing Q3 results world send the stock soaring… whoops!

Strategy I’m either selling 100x way OTM shitcalls - looking for $1 on those, or 10x ATM cc’s - 1000 of my shares were exercised -p240’s, so I’mok to sell them around the 220 range

We were feeling pretty good selling those in/near in the money 300ccs some weeks ago raking in big profits but in the end we never lost the shares which would have been more profitable in the long run. Sigh.

 

[Max Plaid]

We were feeling pretty good selling those in/near in the money 300ccs some weeks ago raking in big profits but in the end we never lost the shares which would have been more profitable in the long run. Sigh.

Yeah, but if you were to sell $1 shitcalls every week against all your shares after one year you'll have reduced the cost-basis by $52!

I think the most important thing is NOT to panic, don't bet the farm - I have the 1000 burner shares that bring in most of the money, I would consider buying some buy-writes if I didn't

 

[traxila]

Yeah, but if you were to sell $1 shitcalls every week against all your shares after one year you'll have reduced the cost-basis by $52!

I think the most important thing is to to panic, don't bet the farm - I have the 1000 burner shares that bring in most of the money, I would consider buying some buy-writes if I didn't

I panic all the time.

Good to know it is the most important thing! Thanks!

 

[phantasms]

Yeah, but if you were to sell $1 shitcalls every week against all your shares after one year you'll have reduced the cost-basis by $52!

I think the most important thing is to to panic, don't bet the farm - I have the 1000 burner shares that bring in most of the money, I would consider buying some buy-writes if I didn't

Do you still think, after the split, you can get a $1 for a shitcall? I'd love to play that game but I worry one needs to fly closer to the Sun these days. That and we all know how TSLA loves to randomly skyrocket off the lows.

 

[juanmedina]

I have $245-250cc for Friday and I am kind of worried about what will happen when they announce that the Twitter deal is done. Maybe Apple will put some pressure on the market tomorrow if they miss earnings.

 

[Max Plaid]

I panic all the time.

Good to know it is the most important thing! Thanks!

Whoops!

 

[Knightshade]

Yeah, but if you were to sell $1 shitcalls every week against all your shares after one year you'll have reduced the cost-basis by $52!

I think the most important thing is NOT to panic, don't bet the farm - I have the 1000 burner shares that bring in most of the money, I would consider buying some buy-writes if I didn't

You might have a different idea of s*hit calls than some folks... to get $1 premium for Friday I'm showing one would need to sell 240 strike with the stock price at $227 so only ~5% OTM.

 

[Max Plaid]

Do you still think, after the split, you can get a $1 for a shitcall? I'd love to play that game but I worry one needs to fly closer to the Sun these days. That and we all know how TSLA loves to randomly skyrocket off the lows.

IV is a bit low for the moment, $1 gets you 15% from the current SP for next week, so -c260's, is that safe? We already moved 15% up from the weekly low, so... the other way I see it is that if they did go ITM, likely they wouldn't go ITM by that much and a decent roll would be on offer...

Personally I'd prefer to just write -c300's and not worry about it, SP needs to be up around 260 to make that interesting

 

[phantasms]

IV is a bit low for the moment, $1 gets you 15% from the current SP for next week, so -c260's, is that safe? We already moved 15% up from the weekly low, so... the other way I see it is that if they did go ITM, likely they wouldn't go ITM by that much and a decent roll would be on offer...

Personally I'd prefer to just write -c300's and not worry about it, SP needs to be up around 260 to make that interesting

Thank you. Yes, I'm in the same boat on those 300s. Hopefully we get back up in that range again before finding new lows.

 

[Max Plaid]

You might have a different idea of s*hit calls than some folks... to get $1 premium for Friday I'm showing one would need to sell 240 strike with the stock price at $227 so only ~5% OTM.

I'm referring to 4th Now expiry... now way would I write -c240's against all my TSLA, 265 feels good from here though

 

[Discoducky]

I'm looking at CCs for next week and wondering what of the major two things happening (Twitter overhang and Fed hike) will be positive, negative or both.

Max pain this week is getting blown out currently ($217.50) and next week $250 CCs look like a big wall...but big enough if the Fed comes in at 0.75 and announces no more hikes?

And remembering that this Friday we get PCE #s at 830am Eastern

 

[traxila]

I'm looking at CCs for next week and wondering what of the major two things happening (Twitter overhang and Fed hike) will be positive, negative or both.

Max pain this week is getting blown out currently ($217.50) and next week $250 CCs look like a big wall...but big enough if the Fed comes in at 0.75 and announces no more hikes?

And remembering that this Friday we get PCE #s at 830am Eastern

No way they are announcing no more hikes, even if that were the plan. And it is not. The plan is a 75 then a 50 then 'data dependency'. And that came from Brainard, who is a dove.

The CPI will still come in "hot". This is the problem when you have decided to look at lagging indicators.

 

[OrthoSurg]

I’m entering the CCs roll-o-thon
Rolling out and up my CCs every day of the week. That must be good news for the margin of everyone here.

No more margin calls.

 

[Chenkers]

I'm looking at CCs for next week and wondering what of the major two things happening (Twitter overhang and Fed hike) will be positive, negative or both.

Max pain this week is getting blown out currently ($217.50) and next week $250 CCs look like a big wall...but big enough if the Fed comes in at 0.75 and announces no more hikes?

And remembering that this Friday we get PCE #s at 830am Eastern

Selling CC before Monday could get interesting if we see full confirmation of the Twitter Overhang lifted after close Friday. Of course this assumes a lot of institutions will wait for confirmation before buying in and that we don't get a "sell the news" from the current front running activity.

I'm expecting a mostly negative Macro reaction next Wednesday on the assumption that Powell doesn't give any solid signals of a pivot. There's always a lot of macro chop around FOMC meetings so there would be a good chance to profit from any CC sold on a Monday pop. Personally I'm looking for the current rally in Tesla to peak early next week so I can adjust to a more risk off position by Wednesday to comfortably ride out any final wave down.

 

[MikeC]

I'm starting to split puts and roll them forward one by one to get them back closer to the money, as they *hopefully* expire.

Also did a buy-write at ~230 with a 230CC but plan to roll it as long as possible if we do break through.

 

[scubastevo80]

Another leg up tomorrow and I'm considering some CC's about 2 weeks out in the $270 range (15% OTM). Would love to pickup some of these for $2+.

 

[corduroy]

I closed out my -240Cs on that dip for a tiny profit - nearly break even. I got tired of worrying about the SP going up and too many catalysts out there. Of course this mean it will probably drop like a rock now, sorry.