Wiki Selling TSLA Options - Be the House

[SpeedyEddy]

Hoping we follow this trend! It seems we are overdue for a general macro rally up. Elon should do a buyback here at these levels...one can wish!

Only if al HODL-ers keep HODL-ing, there is no reason to sell other than the above sad stories and examples. I can not understand how it is smart to sell cheap, if you don't have to. But OK this isn't a HODL-ers thread, but an options-thread.

 

[Max Plaid]

to those getting assigned -p, i am curious why not STO ITM/ATM CC instead of selling the shares right away? or is that a dumb question

i have no experience getting assigned

I guess because many need the cash right away? I didn't sell mine, sold calls... will be upside risk for me from here...

 

[SpeedyEddy]

I got assigned 11x -380 Jan25 puts Tuesday, I was waiting for a bounce to sell 11x ITM CCs to get rid of those shares and sell -350p instead with the money from shares called away
Finally sold 11x 100 30/12 CCs instead today when SP was 149 because it seems there was no relief bounce for us. So I lost and should just have sold the shares at market price when it was 150

That is what I mean @Yoona, when SP is tanking, STO CC is not an option

 

[OrthoSurg]

That is what I mean @Yoona, when tanking, STO CC is not an option

Sorry I meant 129,
Wrote 149 originally before the edit, still can’t believe we are in the 120s.

Tomorrow I will be margin called with negative buying power and covered calls sold on all my shares. So if I sell shares they become uncovered so this will add impact on my margin requirement which is already margin called. At least I have underwater puts that will get assigned so I will have the shares to be covered calls again once the stock price recovers.

What a disaster of a debacle this was.

The only positive thing I learned from this was for my kids to not repeat the same errors I did and expect the market to follow company fundamentals in the short term.

 

[intelligator]

to those getting assigned -p, i am curious why not STO ITM/ATM CC instead of selling the shares right away? or is that a dumb question

i have no experience getting assigned

I've held the shares and the protective put (leftover long put of the BPS) and was able to sell after the price dropped further (put appreciated) to raise cash. I am now bag holding the shares using margin interest, thinking that any snap back I can sell and cover the borrowing cost.

Calls all but disappeared... nothing more to say other than we have a shot at good upside???? GLTA!

 

[mongo]

204 million shares = 7,8% of free float changed ownership today. Unheard of in a normal non-bankruptcy situation (Or IPO etc)
[Edit for a big-cap-stock [/Edit]

Twas high volume, however
Shares traded != shares ultimate gained/ lost
Just like
Option volume != open interest
High frequency trading is included in volume.

 

[OrthoSurg]

Ok so let me know what is the catch of this strategy to avoid margin calls on a downward trend.

Once there is a downward trend, sell DITM CC on the whole position on the way down to receive premium to cover for the expected downside, once the stock recovers BTC as soon as the SP comes back to the strike price.

I see it as the only way to save my shares on the way down to a possible 100 before the Stock price recovers from return of market sanity.

What am I missing here.

 

[traxila]

Ok so let me know what is the catch of this strategy to avoid margin calls on a downward trend.

Once there is a downward trend, sell DITM CC on the whole position on the way down to receive premium to cover for the expected downside, once the stock recovers BTC as soon as the SP comes back to the strike price.

I see it as the only way to save my shares on the way down to a possible 100 before the Stock price recovers from return of market sanity.

What am I missing here.

I think this should work. I am considering it my self and hope the smarter people here comment on this.

Think the major risk you run is that you do this at the bottom. But if you are OK with this worst case, then this should stop the fear and stress immediately. One might even root for the stock to stay down for a while and take its time coming back so you can harvest some theta.

How far out are you thinking? A year? Eighteen months?

 

[vikings123]

Reason for AH spike

https://twitter.com/x/status/1606053960468418561

 

[Bunky]

Elon is on Twitter spaces right now. Just said no more stock sales for 18 months/till 2025

https://twitter.com/i/spaces/1OyKAVlPQznGb?s=20

 

[CHGolferJim]

Reason for AH spike

https://twitter.com/x/status/1606053960468418561

About as definitive a statement as anyone could ask for, and the best news we’ve had in several weeks. Does this mean he sold more this week?

 

[Max Plaid]

Ok so let me know what is the catch of this strategy to avoid margin calls on a downward trend.

Once there is a downward trend, sell DITM CC on the whole position on the way down to receive premium to cover for the expected downside, once the stock recovers BTC as soon as the SP comes back to the strike price.

I see it as the only way to save my shares on the way down to a possible 100 before the Stock price recovers from return of market sanity.

What am I missing here.

There's not much intrinsic on DITM calls, same as DITM puts, so a small chance that they'll get early exercised too, can also be that the stock reverses faster than you can close them out - has to be a face-ripper one of these days, no? But when, that's the question

But I understand the approach, I did the same selling 10x Jan 6th -c115's, there's $3 Theta in the premium, one of the reasons I didn't sell -c100's was lack of extrinsic... but I only did this with less than 10% of shares, so I can easily roll them if the SP were to take-off...

 

[vikings123]

About as definitive a statement as anyone could ask for, and the best news we’ve had in several weeks. Does this mean he sold more this week?

He is talking more….

https://twitter.com/i/spaces/1OyKAVlPQznGb

 

[juanmedina]

About as definitive a statement as anyone could ask for, and the best news we’ve had in several weeks. Does this mean he sold more this week?

Can you imagine if he had make that statement a few days ago ? Good news anyway.

 

[OrthoSurg]

There's not much intrinsic on DITM calls, same as DITM puts, so a small chance that they'll get early exercised too, can also be that the stock reverses faster than you can close them out - has to be a face-ripper one of these days, no? But when, that's the question

But I understand the approach, I did the same selling 10x Jan 6th -c115's, there's $3 Theta in the premium, one of the reasons I didn't sell -c100's was lack of extrinsic... but I only did this with less than 10% of shares, so I can easily roll them if the SP were to take-off...

Maybe tomorrow with Elon’s tweet about him not selling shares anymore

 

[OrthoSurg]

I think this should work. I am considering it my self and hope the smarter people here comment on this.

Think the major risk you run is that you do this at the bottom. But if you are OK with this worst case, then this should stop the fear and stress immediately. One might even root for the stock to stay down for a while and take its time coming back so you can harvest some theta.

How far out are you thinking? A year? Eighteen months?

Well, let’s say I did this at the bottom and Sold 80x 129CCs on my shares for 8.50, it’s now worth 7.50 and if the stock recovers too fast tomorrow at least I can roll them to Jan2025 at 410 strike price for breakeven. However my reasoning today in 5 minutes at work was to find the last option available to avoid a margin call tomorrow and liquidating shares tomorrow at the lowest possible. I gave myself one extra day by selling ATM CCs. However I am trying to see a more intelligent way to cover one whole position in a severe downtrend.

 

[intelligator]

He is talking more….

https://twitter.com/i/spaces/1OyKAVlPQznGb

Lots of positive chatter, check out recording if you have time (don't ask me how, don't know but saw record button illuminated). There were about 60k listeners, i left optimistic.

 

[BornToFly]

Reason for AH spike

https://twitter.com/x/status/1606053960468418561

I bet this means he sold this week, and he is getting in front of the hate stream that is about to come his way.
I know that he couldn't sell this week the way he did before, but I seem to have read that there were ways he could have sold during the blackout period?

 

[BornToFly]

I called and canceled my Roadster reservation this afternoon (1hr, 20 minutes on hold).
I told me guy to sell my share of the jet.
I'll probably be assigned more spreads tonight for a full loss.

So much regret....

 

[adiggs]

Yeah, that's kind of scary. I should probably close some of this out soon since I don't have the cash if/when I'm assigned. Thanks for the reminder that early assignment happens sometimes. My mind has been in a headspin these last 2 weeks of getting pummelled so hard, day after day after day.

One thought - roll them out to a much later date. Keep the strike or to a closer strike - DITM probably can't improve the strike but you should be able to pick up a credit. Then even if you do get early assigned, you'll get to keep that (small) incremental credit as well. That happened to me last night with some 275s I rolled from Feb to April.

EDIT: to be clear only roll in this case for a credit. The purpose of the roll is to add a few dimes of credit when the early assign comes.