Wiki Selling TSLA Options - Be the House

[EVNow]

My order to roll P175 (12/9) to P165 (12/16) for 10 cents credit got executed yesterday. Trying to sell some 182.5/187.5 call spreads for 25 cents.

I'm really daring SP to raise ....

ps : There was a time we could easily get $5 to $10 for a contract pre-split. That would be $1.5 to $3 post-split. Now we have to make do with just a few cents.

 

[adiggs]

My order to roll P175 (12/9) to P165 (12/16) for 10 cents credit got executed yesterday. Trying to sell some 182.5/187.5 call spreads for 25 cents.

I'm really daring SP to raise ....

ps : There was a time we could easily get $5 to $10 for a contract pre-split. That would be $1.5 to $3 post-split. Now we have to make do with just a few cents.

If it helps a .25 credit on a $5 wide spread is 5%. If you close at .10 (60% gain) then you've earned 3% on the capital at risk. Though it seems small in absolute terms, it is mighty in return terms!

 

[CHGolferJim]

Anyone buying at 170 and selling at 174 today (twice)? #yawn

 

[EVNow]

If it helps a .25 credit on a $5 wide spread is 5%. If you close at .10 (60% gain) then you've earned 3% on the capital at risk. Though it seems small in absolute terms, it is mighty in return terms!

But where is the fun in 3% per week

BTW, since I placed the order, SP went down and the premium now is 15 cents.

 

[Artful Dodger]

Perhaps this is actually good news, since 11/22 was coincidentally the day the SP hit $166. Will we rally tomorrow because of naked short covering?
So is this evidence of naked shorting or other shenanigans? @Artful Dodger @Papafox thoughts?

All that I can add is that 12/16 is the 3rd Friday of the Rebalance month for the S&P 500 Index. Consequently, we'd expect high volume on that day. Perhaps someone is positioning themselves to be a 'liquidity provider' for the rebalance action?

 

[dl003]

100% though nothing will happen of course.

Where are we in the EWT process currently, any relief/pop coming soon? Selling any CC’s?

Too late to sell CC now. I replaced my 12/9 197.5C's with 12/16 197.C's on Tuesday following the big dip. Got good money for them but going to close them tomorrow or early Monday.

We still haven't made new low yet so my thesis is still the same: though not guaranteed, we might have completed wave 2/B, which means we can shoot up at any moment. If it's any ordinary week, I'd say 197.5 for 12/16 should be safe to hold to exp, but anything can happen during a CPI & FOMC & Quad witch week so I'm not going to try and milk the last drop. Will send chart tonight. Not guaranteed, but all the ingredients are there: timing (Thursday), gap fill, no fresh low made, double bullish divergence on the 1H timeframe. Be cautious still but this is not the time I'd want to go ham on CC's.

 

[dc_h]

OK Elon, time to lower the boom. I have 60 CC's out there. Time to announce a share buyback, or 1000 Semi's to be delivered by Tuesday. They're lined up like bowling pins from 180 to 205.
It was the only way to bail out my put spread, I sold, when we hit the for sure low on fake Shanghai news on Monday.

 

[Max Plaid]

If it helps a .25 credit on a $5 wide spread is 5%. If you close at .10 (60% gain) then you've earned 3% on the capital at risk. Though it seems small in absolute terms, it is mighty in return terms!

Not if you do it with 10000x contracts...

 

[Max Plaid]

Too late to sell CC now. I replaced my 12/9 197.5C's with 12/16 197.C's on Tuesday following the big dip. Got good money for them but going to close them tomorrow or early Monday.

We still haven't made new low yet so my thesis is still the same: though not guaranteed, we might have completed wave 2/B, which means we can shoot up at any moment. If it's any ordinary week, I'd say 197.5 for 12/16 should be safe to hold to exp, but anything can happen during a CPI & FOMC & Quad witch week so I'm not going to try and milk the last drop. Will send chart tonight. Not guaranteed, but all the ingredients are there: timing (Thursday), gap fill, no fresh low made, double bullish divergence on the 1H timeframe. Be cautious still but this is not the time I'd want to go ham on CC's.

I already sold 24x 12/16 -c190 earlier this week, but as they're straddling -p190's and premium from both side of the trade is $19.2, I have a lot of leeway

 

[Yoona]

i've been noticing that TSLA is climbing just before end of day, so i checked...

TSLA Last 20 Minutes of Trading - Red or Green?

in the last 16 days, there is 94% probability of sp going up in the last 20 minutes

View attachment 882524

for Thanksgiving 11/25 half day, used 12:40pm to 1pm

8 consecutive days

 

[Yoona]

I already sold 24x 12/16 -c190 earlier this week, but as they're straddling -p190's and premium from both side of the trade is $19.2, I have a lot of leeway

-c190! you guys are so brave

 

[dl003]

actually TA-wise, 190 has a good risk : reward ratio.

The first spike after wave 2/B bottom - wave 1 of 3/C - often gets rejected by the hourly 200 EMA, which should be there around 187-185, which is a supply shelf at the moment. The subsequent spike should break it, though, so if I was selling 185C - 190C for next week, I'd close it after the rejection. As for me, I'm still too heavy in naked leaps and monthlies so I'd rather close a portion of my 197.5's for the sake of my sleep, which I don't get a lot of.

 

[Max Plaid]

-c190! you guys are so brave

Was part of healing 10x -p195 + 10x -p200 -> allowed me to roll down to 18x -p190, which is altogether much more comfortable and I can rinse-repeat next week... it's 25x contracts out of a possible 120x I can write, given the put premiums in play at the same strike it's a really east trade to roll up, or down for that matter...

I've got 10x -c185 in play for tomorrow, will they go ITM? I'd love it to happen, but I doubt it

 

[OrthoSurg]

Hope everyone benefited from that dip. All my $169.69 buys hit, so just about out of cash once again. Cash is so low now that I’ll be required to take assignment on the put side of the straddles if we don’t bounce back above $185 by January. Oh well. Also, missed adding a couple more shares because the bounce was faster than my trading fingers. So, now the big question is whether the big drops are done, or is $166 still in play tomorrow? Then, will they really try to push down to the first original pre-split price in the $150s? Unfortunately, I fear that anything is possible by 12/31 so I decided NOT to close my CCs , just picked up shares instead. Still resent these buying opportunities. GLTA and stay safe.

How low will the dip be when we have articles like that Elon Musk’s Bankers Consider Tesla Margin Loans to Cut Risky Twitter Debt

 

[elasalle]

How low will the dip be when we have articles like that Elon Musk’s Bankers Consider Tesla Margin Loans to Cut Risky Twitter Debt

Considering this added to China FUD, Tesla held 170 quite well today ...

PPI comes out 8:30 am tomorrow. Most MM will be able to take advantage of any situation before the opening bell. One hour to gluttony in either direction ...

 

[Jim Holder]

I haven’t been though a heavy bear market/recession as a trader yet, wondering if those of you who have can shed some light.

As I’ve shared earlier, I’m sitting on 5,800 TSLA shares with an overall CB of around $309, with 1,900 of them CB $243 from a 12/16 $266.66 CSP that was put to me recently. This ran up my margin (TD Ameritrade 6% int.) too close for comfort, requiring puts to keep me afloat until SP recovers.

Instead of taking a $120k loss and cutting loose the 1,900 shares ($242 CB) @ current prices, I’m thinking of holding onto them, hunkering down for the duration of the storm (until TSLA back at 250-300 or higher) and carry the interest ($2.8k/mo) and 58x **SUGAR** TSLA 100 puts (around $550/mo) to protect my PNR by selling conservative CC’s along the way.

Even after 12 months, that’s a $30-$40k exposure vs $120k definite loss right now.

Am I thinking about this right? What are some ways you’ve hunkered down and protected your port during such scary times?

(Though I have gains to offset about $80k of loss if I choose to sell some at a loss, it won’t work this year since I bought a TSLA CC on 12/6 (), and TD’s tax dept said that disqualified the loss for 2022 (they look 30 days back and forward from any sale) and it will thus be a wash sale.)

Thanks in advance.

Godspeed to all of us!

 

[Yoona]

if anyone has 15 minutes to spare, reminder to not self-sabotage your account:

 

[intelligator]

Still bottom heavy, negative gamma, no surprise. Look how tightly the interest has shifted to 170 and 175 ! I made an error today by opening a 12/16 -c180, yes that close to the sun. I am more concerned falling below 170 than getting called away shares and felt that theres a strong desire for TSLA to be driven to the floor, so wasn't so afraid of CC during the morning. Anyway, it happened as I was pricing two trades the good part of the afternoon then clicked through 3 contracts. All happened at end of day when we've learned of the price pattern climbing past 3:30PM, thx @Yoona ... got 4.5 each. So, I'll have to manage tomorrow morning during a MMD, if there is one... sounds like we go either way hard. GLTA.

 

[EVNow]

8 consecutive days

View attachment 882829

How does it compare to the market?

 

[Yoona]

How does it compare to the market?

no idea, i only track tsla ticker