bkp_duke
Well-Known Member
Gambled and sold 16 x 750 CC's for Friday. Max pain is right there at 750, and I may regret this. Guess we'll find out in a few days.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Sold Apr16 10 x 805CC @$1.50 & 10 830CC @$0.75
Also last Friday sold Apr16 2 x 780P that are already up 90%
Lets see if I can roll these down/up a bit as the week progresses.
Also last Friday sold Apr16 2 x 780P that are already up 90%
Lets see if I can roll these down/up a bit as the week progresses.
I sold more CC 775s and hopefully it ages well. The IV keeps going down 58.6% right now and we have only two week to earnings. I am going to guess that IV will not get higher than 75% by then which is sad. I hope I am wrong.
Last edited:
Still holding these - and my 5/7's I bought for very similar premium - will look to offload the 5/7's later this week to make sure time decay doesn't hit me too hard.
Currently the 5/7's are at $71 (paid $42)
The 5/14's are at $76 (paid $42.50)
About $5 per contract is what a week is worth.
Just updating for posterity
Just as a data point, if IV hits 75 in two weeks, a ~near the money +C will increase in value by ~5-10% just due to volatility alone (including time decay over those two weeks) depending on the expiration.
I was late to the party this morning but did buy some Sept 800 calls. The position is up ~6% right now, a little over an hour later.
bkp_duke
Well-Known Member
You're nervous? My 750 CCs for Friday look like they are going be BLOWN AWAY.
I'll have to roll if it looks like this way on Friday, I'm not giving up my shares.
Last edited:
Yah, I’ve heard of an iron condor, but you’ve got iron balls on that one. Based on the action on 4/1, you may still have a chance. I’m holding until Friday afternoon and will roll up and out if needed (I’ve still got enough free cash to buyback now, but not if we break 800).
bkp_duke
Well-Known Member
Wife likes the balls.
Not the first time my CC's have been ITM. When it happens, I simply roll them up and out prior to expiration (usually for some additional premium as a nice bonus). NO ONE is getting their hands on my shares.
Still, gives me the "I missed out on something" feeling.
I have a lot of angst playing CC's into this type of environment where we all expect it to pop, esp with earnings coming up. That said, i did add one 860 for next week - got it when the SP was over 750, and i'm ok with an assignment on that - it would be the other side of the wheel from my 820 sold put that was exercised a couple of weeks ago and would cover the big of margin i dipped into.
Have a lot more in play on the -put side. Those are all looking solid, even my 795 from 2 months ago that i've been rolling.
Have a lot more in play on the -put side. Those are all looking solid, even my 795 from 2 months ago that i've been rolling.
Sold all 10 5/7's 2 $83 each- will keep the 5/14's for a bit to see where this goes. ($700 strike)
Further to the rolling question, is it better to roll on Thursday? Did I learn here that most often if someone is going to exercise early, they do it between Thu and Fri?
alterac000
Member
For what it's worth I have been selling CCs and CSPs for a couple of years and despite various times of being either in or out of money, I have never been assigned unless I let the CC expire ITM (or CSP OTM when I'm already accumulating shares). That said, I do believe the probability of assignment definitely goes up closer to expiration. Someone posted a mathematical way to look at this probability but I'm having difficulty locating that post now.
Also for learning's sake, I will post my recent trades to share and for those interested to give input:
sold 1x April 16 770 CC for $2 (transaction yesterday) - given today's price action it is now worth $12.72 at time of this post, which means I'm negative ~500%
sold 1x April 16 805 CC for $2.2 (transaction today) - at time of this post now worth $4.12, which means I'm negative ~90%
I will wait until Thursday before making any decisions to roll but in the meantime it is hard to watch the paper losses. With Tesla swinging as much as it does it can be difficult to find both a) safe strikes and b) the best intra-day/intra-week values, without losing shares!
Thats good to hear. I sold 04/16 $785 and $795 strike covered calls today, thinking I hit a top. Then it just kept rising, lol. We’ll see what happens the next couple of days.
LN1_Casey
Draco dormiens nunquam titillandus
Whelp, yesterday I looked into selling a 750c, thinking that the MM's will likely try to cap it under 730 this week. I noticed the call was only about $2, so I shrugged and thought it not worth it.
Lucked out with that one, haha. Same call is currently $22, and would be ITM.
Lucked out with that one, haha. Same call is currently $22, and would be ITM.
The post last week was that if you're worried about assignment then to pick strikes with a high open-interest, which at least dilutes the probability of an early exercise, but after considering this idea, I don't think it's correct, probability is the same regardless, in fact I'd argue the probability is higher on those strikes...
As for rolling, I can't do it myself, don't have the feature, but you normally would leave it until most of the time-value has gone, so late Thursday or early Friday, that's where you'll get the best bag for your buck
With rolling it depends how far ITM the call is. If its still relatively close to the SP then it can be rolled closer to expiry. If its not a chance to go back OTM on the Friday then Thursday is a safer day to roll. I try to roll on an up day or period as the closer to ITM the better premiums or rolls that can be acheived. If the call is deep ITM then you need to monitor the time value and roll earlier or further out if there is little time value left. The more extrensic/time value on the call the greater the disincentive to exercise early. Same goes for sold Puts.
Similar threads
