Wiki Selling TSLA Options - Be the House

[SebastienBonny]

If I take a look at premiums next weeks, I’m seeing good ones even at strikes far OTM.
Of course IV, but also SP almost doubling causes premium to be better.
Going 20% OTM for next week still gives you a respectable 1.5.
This surely wasn’t the case back at 120.

Should’ve had a bit more patience at those levels and waited for recovery.
Did some shuffling with 25 puts and short term calls.
For next week I have 200CC and for 2/24 the same.
Getting closer to selling around cost base now, which lowers the stress massively.

 

[traxila]

Everything I did got hurt bad today LOL.

Selling CCs a minimum of 30% out and less than 10 DTE after a 25% move up proved disastrous.

Long term accounts involved and took losses. It is OK, but wow.

Only saving grace was 150 C I had loaded up with which I basically used the profits for to close out almost all CCs I had in trading account.

Sorry guys, now we have seen the carnage in both directions. Predictable with distance, but when you are actually at 105 and hurting and someone tells you it will be back to 170 in less than a month the natural reaction is at the very least an eye roll.

I need a break... need to save one more account. Think will just buy back, take loss and fund the margin call.

 

[GrmMastrDoobie]

On Tuesday close to market close, and stock price was at $144.40, I almost sold 1/27 calls with 165 strike for .80. Luckily I listened to you guys and didn't do it because of earnings week. I thought there would be no way we would close above $165 today. If I had sold those would there even be an effective roll strategy, or would I be looking at some more massive losses?

 

[ABC2D]

It almost feels like we took the stairs to go down

Really? How did you forget those free-falls so quickly? No, those weren't stairs, that was express elevator down for months

 

[Cherry Wine]

I've got $155ccs and $160ccs. I'm also adding some $130 puts (1/27 and 2/3 exp) for downside protection. Maybe my face gets ripped off...who knows..

Narrator: His face did, in fact, get ripped off.

I can't remember the last time I've had to roll multiple times in a single day. Sheesh.

 

[OrthoSurg]

Selling 30% OTM weeklies was safe until… today

 

[traxila]

On Tuesday close to market close, and stock price was at $144.40, I almost sold 1/27 calls with 165 strike for .80. Luckily I listened to you guys and didn't do it because of earnings week. I thought there would be no way we would close above $165 today. If I had sold those would there even be an effective roll strategy, or would I be looking at some more massive losses?

You would have had plenty of chances to roll... and then massive losses if you didn't.

What you should have done of course is buy those calls.

Good news all CC holders! I bought 100 1/27 190 calls 0.08 cents a piece. This of course mean that the run is over for today and they will expire worthless.

All the best!

 

[traxila]

Selling 30% OTM weeklies was safe until… today

I staked a lot of money on that percentage.

Funny, had a post earlier this week where I lectured how these were unprecedented times for TSLA and past does not apply and to imagine where your positions would be if it relentlessly went up just like it went down. And then I sold CCs.

 

[Xepa777]

THESE are the days I sell calls. Held off on everything until yesterday and today. Sold $200 strike calls for 2/17. Sold 1/4 of my total position. Felt great.

 

[CHGolferJim]

THESE are the days I sell calls. Held off on everything until yesterday and today. Sold $200 strike calls for 2/17. Sold 1/4 of my total position. Felt great.

Well, you’re not risk-averse.

 

[Xepa777]

Well, you’re not risk-averse.

Fairly risk averse which is why I left 2022 with a net profit because I have a consistent set of rules I've been following instead of the "stretch for yield" I see around here.

Tesla had its 2nd highest all time weekly gain and had a huge upday today on the back of Lucid's buyout rumors (whole EV sector went nuts). I don't think the earnings call was actually good (cybertruck further delayed, low guidance). I'm okay with 1/4 my position given what happened over the past week already.

 

[dc_h]

I rolled 15 165CC's to next week at 167.50 for 1.65 credit. If I rode the wheel, the put was about 3, but I would not be able to buy that until Monday, at best, and the price (all else equal), will be lower after the weekend. Happy to get 2.50 more per share, plus the 1.65, so I add 4.15 per share if they are called next week. Any breather from the run up next week and I should be able to roll out again, or possibly expire. I previously rolled out a 5 150 calls to 155 for next week for no credit. Overall, my CC's cost me a lot, but overall up and relieved to be recovering.
Going forward, I will probably take a break from CC's. I'll miss the income, but if we run up like 2020, CC's could be a tragic mistake, especially for those of us who stood firm through the drop.

Congrats ortho on your comeback. Great to hear your leaps paying off.

 

[myt-e-s-l-a]

STO 10x 230203P175 @ $8.50

 

[juanmedina]

Fairly risk averse which is why I left 2022 with a net profit because I have a consistent set of rules I've been following instead of the "stretch for yield" I see around here.

Tesla had its 2nd highest all time weekly gain and had a huge upday today on the back of Lucid's buyout rumors (whole EV sector went nuts). I don't think the earnings call was actually good (cybertruck further delayed, low guidance). I'm okay with 1/4 my position given what happened over the past week already.

Do you mind posting you rules? I really have a hard trouble selling stock and letting go.

 

[Xepa777]

Do you mind posting you rules? I really have a hard trouble selling stock and letting go.

I only sell calls after several big updays, depending on context (like a 7% update after being up 5% week before or like having 6 straight up days with 10% total up) or when tesla price is near the high point of a range. And in general I’m okay losing shares at $800 presplit as my forever mental marker.

I sell puts after tesla goes down a lot in short time, again that’s based on 6 month chart and big consecutive down days in short term.

I basically stopped selling calls once tesla reached $150ish because I was not comfortable selling shares at those prices.

I sell around 8-12% otm just depends on max pain charts and which walls I can hide behind.

I always roll for credit so that helps me mentally keep track of whether I’m making or losing money. Not optimal but sustainabl.

 

[EVNow]

Sold some spreads at the close. Only half of what I normally do. -165/+170 and -170/+175, -120/+115.

Should be safe.

Funny.

I finally rolled -170/175 to -175/187.5 and -165/170 to -175/190. So, not that bad. If the SP goes up next week, I can roll the same way, with higher spread ... probably can do that for 2 more weeks. After that will have to just sell CC.

 

[EVNow]

Selling 30% OTM weeklies was safe until… today

This is definitely one of the highest after ER increases. 23%.

After Q3 '19, the SP went up 29% (250 to 328 pre-pre-split).

 

[jim0266]

I only sell calls after several big updays, depending on context (like a 7% update after being up 5% week before or like having 6 straight up days with 10% total up) or when tesla price is near the high point of a range. And in general I’m okay losing shares at $800 presplit as my forever mental marker.

I sell puts after tesla goes down a lot in short time, again that’s based on 6 month chart and big consecutive down days in short term.

I basically stopped selling calls once tesla reached $150ish because I was not comfortable selling shares at those prices.

I sell around 8-12% otm just depends on max pain charts and which walls I can hide behind.

I always roll for credit so that helps me mentally keep track of whether I’m making or losing money. Not optimal but sustainabl.

I assume you are selling against shares that are long term? My understanding is for shares to remain long term you must sell them 31+ days out. "Qualified covered calls generally have more than 30 days to expiration and are either out-of-the-money, at-the-money, or in-the-money by no more than one strike price." I still have not sold CC's against my LT shares because of this 30 day rule and runups like this make selling CCs so far out when the SP is depressed seem hardly worth the mental stress. We may be entering a period where selling CC's makes sense. My thesis we have gone too far too fast with too many gaps below.

 

[Krugerrand]

Fairly risk averse which is why I left 2022 with a net profit because I have a consistent set of rules I've been following instead of the "stretch for yield" I see around here.

Tesla had its 2nd highest all time weekly gain and had a huge upday today on the back of Lucid's buyout rumors (whole EV sector went nuts). I don't think the earnings call was actually good (cybertruck further delayed, low guidance). I'm okay with 1/4 my position given what happened over the past week already.

False.

TSLA moved independent of LCID. The others (RIVN, NIO, NKLA) exhibited a similar SP spike and decline (at a much lower percentage) in a similar time frame as LCID.

LCID was flat until approximately 12:30, while TSLA had already risen to almost its closing price at that point - almost 11%. It took over an hour and a quarter for the LCID spike to reach peak before beginning its decent. During that 75+ minutes of LCID rise, TSLA traded flat.

I believe your opinion of the ER is inspiringly flawed, but there’s at least some room for subjectivity in that area. The lie about why TSLA SP moved today, though, doesn’t get to stand uncontested.

 

[EVNow]

Tesla had its 2nd highest all time weekly gain and had a huge upday today on the back of Lucid's buyout rumors (whole EV sector went nuts).

That makes no sense. Lucid & Tesla were clearly not correlated today.