Wiki Selling TSLA Options - Be the House

[Jim Holder]

BTC my 30x 12/2 200 Covered Calls for -$5k haircut.
STO 12/9 220, hopefully make some of it back.

Watch we don’t close at or over 200 tonight or tomorrow and the loss was in vain but the risk is not worth it for me.

 

[SebastienBonny]

BTC my 30x 12/2 200 Covered Calls for -$5k haircut.
STO 12/9 220, hopefully make some of it back.

Watch we don’t close at or over 200 tonight or tomorrow and the loss was in vain but the risk is not worth it for me.

I'm in the same boat. It 's definitely possible we close below 200, but the same goes for the opposite.
That's just to risky for me to keep a contract running if you don't want to lose the shares at that strike.

 

[JSML]

Rolled Dec 2 -c190 and -c195 to Mar -c260 and Apr - c275 for a credit.

Just decided to rolled these out and up now. If the SP falls, I can roll these down again for more credit. I am giving up short term premiums for more safety. I am still holding on to Dec 2 -c200 and I will probably deploy more margin to sell short term premiums for Dec 9.

 

[CHGolferJim]

Is anything to be learned re 12/2 close (current MaxPain $185, up $2.50 from yesterday) from this chart (from PapaFox’s thread) showing only in the last few days has closing price exceeded MP since 11/1?

 

[Jim Holder]

I'm in the same boat. It 's definitely possible we close below 200, but the same goes for the opposite.
That's just to risky for me to keep a contract running if you don't want to lose the shares at that strike.

TSLA heading now to 190
I jinxed it by BTC too early (@$2.20), now $0.96.
You’re welcome ;-)

 

[SebastienBonny]

TSLA heading now to 190
I jinxed it by BTC too early (@$2.20), now $0.96.
You’re welcome ;-)

I already rolled 195 strike for 12/16 to 210 01/20.
Should we go down further I will obviously roll it back and down again.

 

[ggr]

E-Trade changed the way my portfolio margin is calculated two days ago. They end up cutting my margin in half and they said that is because I am too concentrated in Tesla. Did this happened to any one else? Now I don't think I have enough margin if we go down to $160 for instance so I am looking to close some positions in this up trend and sell some LEAPS as protection.

I have had that problem in the past. Call them and explain that you want to re-balance by buying some nice safe ETFs or something rather than liquidating TSLA while it is going up, which caused the problem by increasing the dollar value proportion of TSLA in your portfolio. They'll tell you that they can only do this one time, but they have a relatively short memory.

 

[Yoona]

quick play, BTC it now - my theory is that there is high chance of MMD if previous day up action catches everyone by surprise (remember Hertz next day?)

also, there is an opening gap down to 194.76 that was likely to be filled, and it did

 

[dl003]

Building a flag now for a pop tomorrow. Target 203

 

[jeewee3000]

Just a word of caution: I see many cc sellers suddenly shifting short term expectations since Powell yesterday, making sudden BTC moves taking losses.

To each their own and protecting the investment is important, but as a datapoint I can tell you I'm just holding my -195cc's expiring tomorrow and seeing what'll happen. If I get assigned, I can sell puts again following the (possibly rising) SP. If not, no harm done.

It just seems this thread can be as bipolar as the market sometimes. One day it's doom and gloom, the next day TSLA must be going above $200.

I'll believe it when I see it. MM's are on my side tomorrow.

 

[traxila]

Just a word of caution: I see many cc sellers suddenly shifting short term expectations since Powell yesterday, making sudden BTC moves taking losses.

To each their own and protecting the investment is important, but as a datapoint I can tell you I'm just holding my -195cc's expiring tomorrow and seeing what'll happen. If I get assigned, I can sell puts again following the (possibly rising) SP. If not, no harm done.

It just seems this thread can be as bipolar as the market sometimes. One day it's doom and gloom, the next day TSLA must be going above $200.

I'll believe it when I see it. MM's are on my side tomorrow.

Only problem there is some people may be writing CCs against shares with average buy price of 30 or less and do not want a sudden and extreme tax issue.

Have CCs in jeopardy in my retirement - don't care. Will deal with it.

CCs in my long time HODL accounts are still twenty points out for tomorrow and I am sweating them

 

[jeewee3000]

Only problem there is some people may be writing CCs against shares with average buy price of 30 or less and do not want a sudden and extreme tax issue.

Have CCs in jeopardy in my retirement - don't care. Will deal with it.

CCs in my long time HODL accounts are still twenty points out for tomorrow and I am sweating them

Of course, everybody's (tax) situation is different. But I'm just saying it's not guaranteed we close +$200 tomorrow. (We thought it was guaranteed Q3 would send the stock soaring too)

 

[Yoona]

my temp B/W -c187.50 (cost basis 187.54, credit 4.60) is both failure and success

failure - with sp @194.68, i could have paper gained 7.14 if i had just simply HODLed

success - 4.60 credit will be realized gain and it's money in the bank; still happy to let shares go instead of fixing the B/W (lesson here: stick to the plan; unplanned/revenge trades with no clear exit strategy almost always cause problems)

 

[EVNow]

BTC my 30x 12/2 200 Covered Calls for -$5k haircut.
STO 12/9 220, hopefully make some of it back.

Watch we don’t close at or over 200 tonight or tomorrow and the loss was in vain but the risk is not worth it for me.

I'm in the same boat. It 's definitely possible we close below 200, but the same goes for the opposite.
That's just to risky for me to keep a contract running if you don't want to lose the shares at that strike.

Have a ton of CCs at 200. Will roll tomorrow to 215/220.

Also have 190 puts (just a handful). What would you guys feel is a safe strike to roll the puts - 175 or 170 ?

 

[jeewee3000]

my temp B/W -c187.50 (cost basis 187.54, credit 4.60) is both failure and success

failure - with sp @194.68, i could have paper gained 7.14 if i had just simply HODLed

success - 4.60 credit will be realized gain and it's money in the bank; still happy to let shares go instead of fixing the B/W (lesson here: stick to the plan; unplanned trades with no clear exit plan almost always cause problems)

View attachment 880168

Since my capitulation moment I've (also) subscribed to the "protect capital at all costs"+"slow and steady" religion, as opposed to the "try to maximize profit with every trade".

 

[Jim Holder]

Of course, everybody's (tax) situation is different. But I'm just saying it's not guaranteed we close +$200 tomorrow. (We thought it was guaranteed Q3 would send the stock soaring too)

Both can be correct. In my case my share CB for that lot was $242, definitely worth paying $5k to protect $126,000 (difference bet. 200-242 x3,000). But anecdotally, the two times I had to recently BTC at a loss, had I waited more there was a bigger dip ahead to BTC for at least 50% less loss. Fear is a huge factor in waiting. And risk.

From now on I’m choosing higher strikes and being satisfied with less premium that comes with that.

 

[EVNow]

Building a flag now for a pop tomorrow. Target 203

200 will have a lot of resistance. There needs to be a big catalyst / buyer to break it on a Friday. I don't think Semi delivery will be that catalyst ...

 

[UltradoomY]

Have a ton of CCs at 200. Will roll tomorrow to 215/220.

Also have 190 puts (just a handful). What would you guys feel is a safe strike to roll the puts - 175 or 170 ?

Why would you roll OTM puts?
Just let them expire or at the least wait until late in the day tomorrow when Theta has burned off?

 

[vikings123]

Just a word of caution: I see many cc sellers suddenly shifting short term expectations since Powell yesterday, making sudden BTC moves taking losses.

To each their own and protecting the investment is important, but as a datapoint I can tell you I'm just holding my -195cc's expiring tomorrow and seeing what'll happen. If I get assigned, I can sell puts again following the (possibly rising) SP. If not, no harm done.

It just seems this thread can be as bipolar as the market sometimes. One day it's doom and gloom, the next day TSLA must be going above $200.

I'll believe it when I see it. MM's are on my side tomorrow.

Yes and No because of tax situation. If you are selling CCs against long term shares you don't want to lose just make sure to sell really safe calls 20% OTM. In other words don't chase premiums.

My biggest BTC lesson: If you have CCs under water, do not BTC during the first half hour. Let the stock do its thing. It will eventually give you a much better exit opportunity.

 

[CHGolferJim]

Looks like my +10%OTM threshold for selling CC 5-8DTE will be hit this week. I really wanted to hold on and test it, but today’s MMD went lower than expected ($191.80) so I rolled 95% of the contracts and will let several 1202-c$195 ride until tomorrow for roll/expire/assign. The latter are in a smaller IRA that I’m considering to shift 50% from shares to Jan25LEAPs. If they assign, I’ll hold the cash for the LEAPs buy at a lower price.

• Rolled 1202-c$180 to 1209-c$180 for $1.60 credit in case there’s a pull-back next week (a la @dl003)
• Rolled 1202-c$195 to 1209-c$195 for $3.78 credit (banking that to cover possible debits on future rolls)

As always, thanks for the discussion which helped narrow and make the decision.