Wiki Selling TSLA Options - Be the House

[TexasGator]

Shows roughly 4.5k loss which may be right if both legs of the spread is closed together vs assigning the shares at 250

Edit: The margin requirement is 12k but if they assign at 250 then u need 25k to take assignment - and then deal with the shares and the long out. Seems when folks have been assigned that's what happened just not sure if that was fidelity

 

[dc_h]

Sadly I have rolled 190 CC's to 170 and 175. Have 180 and 185 as well. Sticking to weekly for now, but will likely open some 190's tomorrow if there is any premium. Trying to roll 173.33 163.33 BPS (facepalm)

 

[EVNow]

Sell jan25 250p buy Jan25 130p

7.5k credit.

If worst case gets assigned at SP of 120...assuming stock not free falling (hopefully a good assumption but...)

Sell stock for 12k
Sell 130p for 4k

So max loss 1.5k vs gain of 7.5k

Shows roughly 4.5k loss which may be right if both legs of the spread is closed together vs assigning the shares at 250

Edit: The margin requirement is 12k but if they assign at 250 then u need 25k to take assignment - and then deal with the shares and the long out. Seems when folks have been assigned that's what happened just not sure if that was fidelity

Worst case would be SP of 130.

+7.5k
-25k (assignment)
+13k (stock value)

So, 4.5k max loss.

 

[corduroy]

i would ask myself - what is the goal of opening new positions just hours pre-FOMC and why take that unnecessary risk?

One reason is to play the IV crush. Not sure if this was the case with TSLA, but SPY premiums were crazy high before the meeting then collapsed after. I made some good trades today around that.

 

[bkp_duke]

How are these people getting the $3,750 critical materials credit?

They are not, it's a one-time concession that Tesla is making to some buyers in Dec to keep things rolling along. It's irrespective of the IRA, but tangentially related because these clients claim they are cancelling/postponing till Jan in order to get the IRA credit then.

 

[EVNow]

I'm debating 170/175 spread (22 cents) vs 175/180 (10 cents). What are the chances of SP climbing $15 (10%) in the next 2 days ?

 

[mongo]

They are not, it's a one-time concession that Tesla is making to some buyers in Dec to keep things rolling along. It's irrespective of the IRA, but tangentially related because these clients claim they are cancelling/postponing till Jan in order to get the IRA credit then.

Yeah, I know about the interim discount, I'm referring to the other half of the $7,500 mentioned in the post I replied to.
Waiting for $7.5k would be a loooonnnngggg wait. (Unless loophole/ Treasury update)

 

[bkp_duke]

Yeah, I know about the interim discount, I'm referring to the other half of the $7,500 mentioned in the post I replied to.
Waiting for $7.5k would be a loooonnnngggg wait. (Unless loophole/ Treasury update)

I'm missing something, the $7500 tax credit starts Jan 1 for people that meet the income restrictions (17 days from now). Are you referring to something else?

 

[mongo]

I'm missing something, the $7500 tax credit starts Jan 1 for people that meet the income restrictions (17 days from now). Are you referring to something else?

The $7,500 credit requires both free trade, local, or recycled critical minerals ($3,750) and US pack assembly ($3,750). AFAIK, Teslas will only qualify for the latter to start with. So people waiting for $7,500 will be waiting a long time.

 

[strago13]

Was assigned a Feb 275 CSP overnight. I have 3 other 275 CSP which I will roll up and out to 2024 tomorrow....trying to keep cash in this market.

 

[intelligator]

Was assigned a Feb 275 CSP overnight. I have 3 other 275 CSP which I will roll up and out to 2024 tomorrow....trying to keep cash in this market.

I had two roll orders yesterday that didn't fill. Luckily, I only had two contracts put to me. What followed was more bothersome though. Fidelity did me a favor by pairing the long leg that belonged with the two short leg contacts to form a calendar butterfly spread. I tried to sell the long leg to raise cash to offset the overprice assignment but couldn't because it would have left a naked position. That's because I have option level 2, naked not allowed. So, I had to get the broker on the line to do that. I then proceeded to write two roll tickets to move the remaining DITM BPS to safety. I was able to roll the Jun '24 383.33 to a Jan '25 280, but at a debit. I did so to give me enough extrinsic to not fret so much assignment and the need to overpay to settle. When I went to place the order, I effectively didn't have enough cash. Yeah, I hit $0 funds available for margin and non-margin !!! So, I had to sell the other long leg from another assignment a few weeks back. That too required the broker to complete due to options level. Don't you love all the favors Fidelity does for us! To my benefit, that long put appreciated well with this weeks drop, so I had enough to write those orders. It didn't end there. To get the orders to fill, I had to add .50 to and 1.00 to the other, closer to ask. Writing orders at mid-point when the two legs are so far DITM and out in time, they'll sit and rot 'til end of day. Had I done that yesterday I'd saved myself a two contract assignment.
So, I wanted to write a BPS order for Friday but that too wasn't possible until I halved my order ... not enough non-margin left. I then decided to ditch it and let the money sit in case I will need it to close something else. CC premiums aren't worth the risk. Maybe ATM or ITM to generate some credits and have lots called away for tax reasons. Having said all that, it wasn't too painful given that the costs are drawn from the credits I earned this year. Those aren't all gone. For now, I may let the -136.xx/+126.xx BPS for Friday expire (please) and enjoy the year end festivities. Hope all had and have better days. GLTA !!!

EDIT: Figured I may as well save a post, lol. Here's the Gamma exposure chart , 150 is the focal point ... hope we've seen most.

 

[elasalle]

The $7,500 credit requires both free trade, local, or recycled critical minerals ($3,750) and US pack assembly ($3,750). AFAIK, Teslas will only qualify for the latter to start with. So people waiting for $7,500 will be waiting a long time.

Hope Tesla is communicating this to buyers looking to cancel.
I was at Tyco's VA this weekend, busy as hell. Lots of deliveries going on ..

 

[dc_h]

Double Top detected just now ~160

View attachment 885017

Ugh

 

[dc_h]

The $7,500 credit requires both free trade, local, or recycled critical minerals ($3,750) and US pack assembly ($3,750). AFAIK, Teslas will only qualify for the latter to start with. So people waiting for $7,500 will be waiting a long time.

Wrong thread, but Tesla batteries are made and assembled in the USA. 3 & Y will quality for 7500.

Here's every electric vehicle that qualifies for the current US federal tax credit

As sales of electric vehicles continue to surge, many new and prospective customers have questions about qualifying for federal tax...

electrek.co

 

[MP3Mike]

Wrong thread, but Tesla batteries are made and assembled in the USA. 3 & Y will quality for 7500.

Sure, most of them are made here but where do the minerals come from, and where are they refined? (As far as I know the LFP batteries are imported from China.)

 

[strago13]

Elon sold

 

[kabin]

Just got the same email. It's only 10M shares but the timing is curious.

 

[bkp_duke]

If I'm reading the notes right, these were sales of shares by his "Beneficial Trust", not him directly.



EDIT - nevermind, his old filings have that on them as well.

 

[Oil4AsphaultOnly]

Just got the same email. It's only 10M shares but the timing is curious.

I counted 20m sold.

 

[BornToFly]

I don't know what to say. I had to sell another 16,000 shares recently because Elon tanked the SP for more Twitter money. His pursuit of Twitter has forever changed the financial landscape for the rest of my life in a very bad way. What is the point of researching Tesla to the Nth degree, only to have all your research and planning turned upside down by the CEO?