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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Which is probably why we got the bear attack right at open with QQQ at 288...
I think a lot of TSLA investors must be feeling this way, because the slightest jitter and BAM it's knocked down another few bucks. (Then gets held down while macros recover.) Really getting old.
Picked up a Jan 2025 300C for $34.3. I previously did this on the last dip and sold it for $6 profit. A little upside FOMO protection and if it goes down I can tell myself the actual cost basis is $28.3. It's really all about emotion management at this point.
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So far the shorts have acheived the new 52 week low at $176.55 (previous $177.12). Our previous low closing price was $177.59 on 9th November. So now we need to stay above that at the close to prevent a lower low. MM's may assist to see us over the big Put wall at $180 but then they haven't been very helpful with Put walls of late.
I'm hoping we can continue to bounce back from here and go on to form a double bottom. Hopefully that will be bullish enough to carry us higher into next week and beyond.
I'm hoping we can continue to bounce back from here and go on to form a double bottom. Hopefully that will be bullish enough to carry us higher into next week and beyond.
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So far the shorts have acheived the new 52 week low at $176.55 (previous ~$177.2). Our previous low closing price was $177.59 on 9th November. So now we need to stay above that at the close to prevent a lower low. MM's may assist to see us over the big Put wall at $180 but then they haven't been very helpful with Put walls of late.
I'm hoping we can continue to bounce back from here and go on to form a double bottom. Hopefully that will be bullish enough to carry us higher into next week and beyond.
It's been a tough 2 weeks for everyone. We can only go so much lower so mentally I feel like the bottom is around but boy do we need some buyers to show up. It feels like shorties have full control of the stock and have no fear.
I sure hope 177-178 holds today. If we close below that I think we probably see more slow bleeding next week.
I sold 8X Mar 2023 150 puts yesterday and today for an average of $12.50. I don't plan to do anything with these until expiry. I doubt I will get assigned but who knows. It's good to see decent China sales for the first two weeks of the month. If we get another strong number next week I plan to buy some short dated calls, bought a few Dec 16 210 calls for 2.90. I'm also tiering into some Jan 25 250 calls.
In the retirement accounts I have mostly been selling cash secured puts, not going to buy any more leaps in this account unless I see us improve from a TA perspective.
I think this is nonsense... STO 5x 11/25 -p180 @$7.1 & 11/25 -p185 @$10.1 on the last dip to 177 -> will look to straddle with calls, but first wait and see if the SP gets ay kind of recovery in the next hour or two
Still have 5x -p185's to buy back for today, also wait-and-see for those
Still have 5x -p185's to buy back for today, also wait-and-see for those
11/18 -195c is now delta 0 (so are 2 strikes below193.33 and 192.50), and theta -0.07, thing is 0.01 cent, with 3 hours left, not going to close it. Would be a pleasant blackswan event if itSTO 11/18 -195c $3.40 credit SP around $181 (pre split $543)
I only opened 1/3 as many contracts but that's enough to be a credit roll from the 12/16 -250c closed at 0.82/contract yesterday.
Baiting it to be ITM so I can save the rest of my portfolio...looks like it's already up to $4.8/contract since I sold lol
in 3 hours and I get assigned. The premium from the 11/18 -195c is enough to cover that $0.82 from closing the 12/16 -250c early with only 1/3 as many contracts. In effect I closed 12/16 -250c early with no debit at all and freed up shares for 4 weeks. I actually rolled past the fed pivot/this is the bottom (from june 2022), so I happy about this and finally closed the chapter on the disastrous 5/27 -200c sale.Not so happy about potentially getting margin called soon-ish ($165). I may have to inject some cash from external lines. Margin interest is 7.75% last month, with the 0.75 rate hike it's 8.5% now.
Premiums are so bad, I can no longer make enough to pay capital gain taxes (15%+) AND the margin interest (not tax deducible on capital gains in Canada), so I'm stuck with a few hard choices
1.) Sell TSLA shares to reduce margin loan balance (but forced to sell at these low prices and take a hit)
2.) Keep paying interest
3.) Sell Risky ATM cc's just to pay interest to tread water
/end rant
Opened just 1 contract to bait the stock today, today is not a good day to open CCs, but I dont know if SP will drop further next week so opened this. If share price goes up then I might sell more CC at more decent prices.
STO 12/16 -210c $2.62 (SP around $177.66)
Selling "risky ATM cc's" will bring in cash and potentially get you a better sell-price for you shares, but as pointed-out many times by @adiggs, there is a risk that the SP tanks and although you get to keep the premiums - which is the main thing we try to achieve here - you may lose the opportunity to sell the shares at the current price and end up deeper in the fecal-matter11/18 -195c is now delta 0 (so are 2 strikes below193.33 and 192.50), and theta -0.07, thing is 0.01 cent, with 3 hours left, not going to close it. Would be a pleasant blackswan event if it
Not so happy about potentially getting margin called soon-ish ($165). I may have to inject some cash from external lines. Margin interest is 7.75% last month, with the 0.75 rate hike it's 8.5% now.
Premiums are so bad, I can no longer make enough to pay capital gain taxes (15%+) AND the margin interest (not tax deducible on capital gains in Canada), so I'm stuck with a few hard choices
1.) Sell TSLA shares to reduce margin loan balance (but forced to sell at these low prices and take a hit)
2.) Keep paying interest
3.) Sell Risky ATM cc's just to pay interest to tread water
/end rant
Opened just 1 contract to bait the stock today, today is not a good day to open CCs, but I dont know if SP will drop further next week so opened this. If share price goes up then I might sell more CC at more decent prices.
STO 12/16 -210c $2.62 (SP around $177.66)
So you need to consider what would happen if the SP fell to 150, 140, 120 even, would you be royally screwed...?
I have lived through the scenario you described above and took a loss by selling the shares last week. The decision was made easier because of the fact that the losses can offset the gains I had from selling long term shares earlier in the year. I kept accumulating these Buy/Writes all the way from 300 to 220 levels. While I made money from selling the CCs against these shares the lesson learned for me is to to cut your losses if the position turns against in a major way, aka we need stop losses.
That said I'd rather do the buy/writes at this level instead of 300 level because of how badly the stock's been hit. You still want to keep some margin available. I would do it here but waiting for the 30 days to pass to avoid wash sale impacts.
Anybody else going against being the house today? Sure looks like a good possibility of a double bottom at ~177 so I decided to hedge a bit. Bought 10x 12/09 +c220s at $0.86. 90% chance I will be wrong on this like my last buys, but not a huge loss if the SP continues flat or lower. maybe it’s something in addition to my CSPs to help moderate some of my near ATM CCs should we see an actual bounce. In other trades, rolled -p190s out, readjusted some others, bought some more shares. Once again, free cash in accounts is below my comfort level, so the SP will probably keep dropping. Looking forward to the next iteration of @dl003 analysis. GLTA.
Edit: what the ‘ell just happened to the SP? Oh, yah, that’s right there’s a massive put wall at 180. MM finally supported the SP.
Edit: what the ‘ell just happened to the SP? Oh, yah, that’s right there’s a massive put wall at 180. MM finally supported the SP.
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Some buying volume happening right now so we don’t cry all week end long
I have 4 broken tibia to nail this week end because of the icy snow
If you don’t have a broken leg, consider yourself lucky even if your portfolio is destroyed
Honestly, 19 out of 20 weekly/monthly calls I ever bought went to zero, so it's a cold day in hell when I buy them - LEAPS are a different beast of course, closer to an investment than an options yolo
So, that nice pop now triggered all my call sells for next week, STO 5x 11/25:
-c180 @$5.1 -> straddled with -p180 @$7.1
-c185 @$3.1 -> straddled with -p185 @$10.1
-c190 @$1.7 -> straddles with -p190 @$11.1
The -p190's are the outlier as they were a roll from yesterday, buy a net +$3 from -p195 to -p190
The call premiums aren't great, the money's in the puts - one side will win, the other, to be seen...
Still 5x -p185's in play for today, thinking to let them exercise to give some burner-shares, so much for selling some shares to derisk...
Don't forget, Thanksgiving next week...
Judging from past bounces, I say we're looking at 195 max for next small wave 1 of 3/C. I'm super tempted to just sell 195C for next week right now but it seems ill-advised down here.
bkp_duke
Well-Known Member
Wow, just look at the precision of the MMs this afternoon!
Yup, dump it to wipe-out the -c180's, then quick rise into close to avoid the -p180's, impressive!
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