Before seeing your post, I Sold 25/11 180CCs yesterday at close. I will be happy to roll them to 195 2 weeks out if the SP goes up, that would mean I am about to lose my shares from selling CCs going tits up instead of the SP going to 140 ans getting margin called.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Before seeing your post, I Sold 25/11 180CCs yesterday at close. I will be happy to roll them to 195 2 weeks out if the SP goes up, that would mean I am about to lose my shares from selling CCs going tits up instead of the SP going to 140 ans getting margin called.
SebastienBonny
Member
Just when you decide to sell CC, because you think nothing can move the stock now, we have South-Korea news and Citi upgrading Tesla from sell to neutral... Guarantees nothing, but definitely positive news.
Right now I'm happy to be rolling calls up than puts down... only advice I'd give to folks is not to write nATM contracts against ALL their shares/LEAPS, unless they want to sell that is, leave the capability to add more contracts to a roll, or alternatively roll out the current ITM's 3 months, then write weeklies with some of the remaining
In my case, I will generally go with 10x contracts weekly (yes, I wrote 20x for next week, but that's on recently assigned puts, so low cost-basis, plus I want to de-risk a little into some extra cash), which in principle means I can write ATM, if they go ITM I can roll forward 2-3 months then write another 10x ATM, rinse-repeat 10x before I arrive at the first set I rolled, which may then need rolling again - or I may have rolled them already, but if you're having to roll up three months non-stop then likely we're above $300 and I'd be OK to allow some to exercise...
There isn't one article that explains how to use gamma exposure, gamma flip, or the chart itself. Months ago I'd posted the article crediting the originator of the code, using CBOE pricing data daily. I made a few simple mods to shape the charts some. In principle, the calculations remain unchanged. I use the chart mostly to confirm the days activity from the previous , when i have two side by side. When total gamma crosses directionally -/+ , typically it's an indicator that MM are selling the shares gobbled up, price tends to rise. +/-, MM are doing their job to buy , accumulate shares being unloaded. Delta hedging comes into play as well. The bars themselves magnify the open interest and gamma for each strike, helping form a visual of the edges, where price might go, positive or negative, as well the concentration. My trades are mostly 3-4DTE... this insight helps, some. *** No guarantee, ever *** , it's just another data point I use to get a feel of where we are and what might develop in terms.if price movement.
Here's one perspective, there are others.
Gamma & Gamma Exposure - What Traders Need to Know — Opinicus Holdings
Gamma and Gamma Exposure (GEX) are becoming increasingly important forces in today’s market, and have the potential to become one of the most important non-fundamental flows in equity markets.
opinicusholdings.com
Perfect timing!
Looks like I'll be rolling ITM CC. The important thing is to not panic and lose money, because that would guarantee a reversal and then losing more money in the other direction....
AquaY
Member
Hi Treb!Hi, I'm Treb, and I'm a TSLA bagholder
FOMC minutes later today, which could send us several % up or down, I'd say it's a dice-throwPerfect timing!
Looks like I'll be rolling ITM CC. The important thing is to not panic and lose money, because that would guarantee a reversal and then losing more money in the other direction....
AquaY
Member
I was assigned 4x 245 Jan 20 2023 puts last night.
I've been tracking Extrinsic on my DITM short puts.
Yesterday afternoon while the SP was 168.67 the extrinsic value of the 245s were .3475
I also am short 275 strike puts for Feb anbd their extrinsic at the same ime was .1338 and none of those were assigned.
You can never account for the reasons others may exercise. But 34 cents while not a lot is still signifigant.
I intend on selling the 400 shares this morning and then selling the same put.
I've been tracking Extrinsic on my DITM short puts.
Yesterday afternoon while the SP was 168.67 the extrinsic value of the 245s were .3475
I also am short 275 strike puts for Feb anbd their extrinsic at the same ime was .1338 and none of those were assigned.
You can never account for the reasons others may exercise. But 34 cents while not a lot is still signifigant.
I intend on selling the 400 shares this morning and then selling the same put.
Cons: 2 weeks is a long time. If TSLA goes from 225 to 195 in a week before going back up, you'll be in a world of hurt for weeks, if not months.
Pros: at this stage all attempts at a rally are skittish and don't go very far in a week.
Cons: We're the most oversold since June 2019 so who know what's going to happen in the short term. No, we're not going to the moon but near the money calls are much deeper in danger territory.
Pros: We have 2 days left in the week with reduced volume. SPY is at 400, rendering downside risk more profound. CPI and FOMC in 3 weeks keep check on equity rallies.
chiller
Member
Whoops, totally forgot that I have 5x -c180, 5x -c185, 5x -c190 in play for this week
Was going to close them yesterday and thought "nah", save the money... TBH would be happy for them to exercise, can roll next week's 20x -c180 way up and out if needed
I panicked with this morning’s rip and BTC the 49x 11/25 (tomorrow) 180C I STO yesterday. Cost me $11.5k
The shares had a cumulative cost basis of $309 so I needed to protect them.
Now I need to find safe/conservative strikes to claw that back so this doesn’t happen again.
Does 195 for next Friday still look safe?
AimStellar
Member
Does anyone here follow a strict approach to selling weekly covered calls? (Eg, sell 5% or 10% OTM each week, rinse and repeat). Or is it more of a “feel” approach, or something else?
Strict approach? Who do you think we are? A bunch of doctors and pilots?
It's less about what is safe but more about the momentum now. 195 is safe but I'd close them as soon as we hit 173 or something like that.I panicked with this morning’s rip and BTC the 49x 11/25 (tomorrow) 180C I STO yesterday. Cost me $11.5k
The shares had a cumulative cost basis of $309 so I needed to protect them.
Now I need to find safe/conservative strikes to claw that back so this doesn’t happen again.
Does 195 for next Friday still look safe?
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