Wiki Selling TSLA Options - Be the House

[jeewee3000]

Sold some $210 cc's expiring tomorrow @0.60 USD each. I consider this to be safe beer money (knock on wood). If challenged, I well let these execute and sell puts.

 

[OrthoSurg]

so far it's played out as planned. TSLA can now be seen with a super noticeable bearish divergence on the daily timeframe. All the ingredients for that correction are here.

What is your trigger to sell CCs and buy puts to edge against a correction? Are you waiting for a break of support or you are aiming at a specific resistance. Do you wait for stock price confirmation or just bearish divergence on the hours candles

 

[Max Plaid]

Rolled this week's 13x -c170 to next week -c180 and straddled with the same number of puts - was bad timing to sell these calls this week at a lower strike than the puts, "inverse strangle" as I call it, was always meant to be a straddle, but the SP moved too fast away from the price and I stupidly went for the premium rather than the strike... anyway, it's a break-even trade, need a week of low volatility, then shift to +/-$10 strangles

Still 13x contracts is easy enough to manage...

Still have 13x -p180 in play for this week...

 

[CrunchyJello]

Rolled this week's 13x -c170 to next week -c180 and straddled with the same number of puts - was bad timing to sell this calls this week at a lower strike than the puts, "inverse strangle" as I call it, was always meant to be a straddle, but the SP moved too fast away from the price and I stupidly went for the premium rather than the strike... anyway, it's a break-even trade, need a week of low volatility, then shift to +/-$10 strangles

Still 13x contracts is easy enough to manage...

Still have 13x -p180 in play for this week...

Love your idea of managing a DITM call to an ATM straddle or an ITM put.
Really opens up the imagination!

 

[chudiddy]

Can anyone suggest what to do with 5x -c145 feb 3 to minimize loss? What week should I roll to? Stock won't stop climbing but its so due for a pullback.

 

[myt-e-s-l-a]

Pressing my Short further. Rolling 5x 230203P175 to 230210P165 for debit of $2.95

Closing 5x p175 @ .50 , 5x p165 @ .10 for profit of 6k

Buy 1000 tsla @ 169.50 to cover 10x 230203C170 , as opposed to rolling it

Rolling CC 10x 230203C170 to 230210C185 for debit of $6.10

 

[chrsk]

Many hear talks of a pullback. Why is it so sure that there will be a drop now when the drop from 200 to 100 was almost vertical...?

 

[UltradoomY]

Can anyone suggest what to do with 5x -c145 feb 3 to minimize loss? What week should I roll to? Stock won't stop climbing but its so due for a pullback.

Depends on how much margin or room you have -

Could always increase the number of contracts - the 02/24 $190 C's are around $16 each - so you could roll 5 contracts to 15 contracts there gaining a lot of strike improvement but also - tripling your risk.

 

[juanmedina]

Insane... how do I wish I had loaded on short term calls , Oh well. I added some 235cc's for next week at $1.54.

 

[Cherry Wine]

Many hear talks of a pullback. Why is it so sure that there will be a drop now when the drop from 200 to 100 was almost vertical...?

Especially when JPow essentially greenlit a macro rally yesterday.

 

[dc_h]

Looking back to 2020 and 2021 I see the first rise was from 92.28 on Aug 11th 2020 and ran up to 189.62 and then dropped 51% to 112.84 on Sept 8th and back to a new high on Nov 30 at 196, continuing up to 293.43 on Jan 8 2021 and fluctuating to the high of 412 on Nov 4th 2021. We've seen lower highs until now. So I'm hoping to string my CC's along until we get a drop and then close them out and stay away from CC's for a while.
It's hard to see now when all the news is good, who knows, maybe we run up to 300 and then correct 50% from there, but I don't think these runs are usually linear. Unlike the last year, dips should be buying opportunities, where highs were selling opportunities since Nov 4, 2021. Some of us just refused (this guy) to see the pattern.

 

[dc_h]

Looking back to 2020 and 2021 I see the first rise was from 92.28 on Aug 11th 2020 and ran up to 189.62 and then dropped 51% to 112.84 on Sept 8th and back to a new high on Nov 30 at 196, continuing up to 293.43 on Jan 8 2021 and fluctuating to the high of 412 on Nov 4th 2021. We've seen lower highs until now. So I'm hoping to string my CC's along until we get a drop and then close them out and stay away from CC's for a while.
It's hard to see now when all the news is good, who knows, maybe we run up to 300 and then correct 50% from there, but I don't think these runs are usually linear. Unlike the last year, dips should be buying opportunities, where highs were selling opportunities since Nov 4, 2021. Some of us just refused (this guy) to see the pattern.

If we matched the 2020 first run, we will go all the way to 211 and fall back to about 155. I'm not a technical person, just napkin math. Not technical and not advise.

Edit add: The obvious play is to sell 160 CC for next week. Mostly sarcastic, but if we hit 210 tomorrow, I think I will sell one contract at 165.

 

[CHGolferJim]

Can anyone suggest what to do with 5x -c145 feb 3 to minimize loss? What week should I roll to? Stock won't stop climbing but its so due for a pullback.

I have 3Feb$125 CC on a $116 buy-write that I’m considering to roll to 17Feb$180+ which is about where net gain (sto-btc+unrealized capital gain) starts to go positive. However, this is in a non-taxable account, so if you are taxable that would add another cost and factor to consider, of course. Comparing to letting assign and rebuying shares and writing a $5 ITM CC — seems to yield a slightly higher net gain over next 2 weeks……tentatively.

 

[vikings123]

I felt like I have been making decent calls the past week or so so just wanted to check for myself. I made some plays based on how I thought the market would go so very happy with the results. Learning a lot for sure with more experience...The thing that has been eye opener for me is that the market respects technical analysis, there should not be any ifs and buts about it.

A lot of the learning has come from Dan and how he approaches trading. He really thinks we TSLA can hit 200 tomorrow(he even made this call yesterday before the Fed meeting). If anybody actively trades and is interested in learning more please message me, I feel like I'm finally starting to get this haha.

Agree and path of least resistance is still up purely from a market perspective. Every attempt this week to drop the stock has been bought up so I'm not expecting any big drops. It remains to be seen how analysts adjust their price targets for the 37% growth guidance for 2023.

I'm not sure if there any commentary on 2023 margins but I assume that topic alone will cause volatility in the stock during the call and of course any Elon sound bites lol.

153 is a key level now. If it stays above that level for atleast one hourly candle and/or closes above that on a daily basis you might want to think about rolling.

In general 50 day SMA is key to flipping a stock from bearish to bullish for the near to medium term. Not advice.

I think there are a lot of shorts trapped in this range. So I'm not sure I subscribe to your view.

I will say, based on previous post ER trading action, gap ups have got sold a lot of times. This time feels different just because of how beaten up the stock is and also would be a good time for the shorts to get slaughtered. That said take it nice and slow, there will likely be pullbacks today. I have some Jan 27 167.5 CCs that I expect to be safe but you never know. The money I used to buy puts is mostly gone and I'm happy about it lol.

And like I said yesterday we are in a new bull market so keep that in mind if you are expecting red.

No news just momentum and technicals. Fridays are the best for a gamma squeeze. I think we will test the 166-167 level and based on what kind of option bets we see at the open we could be in for an adventurous day.

edit: PCE numbers at 8:30 EST so this could just be MMs positioning for a drop in case the markets react negatively to the news.

I think the opportunity is still present. If fed signals end of rate hikes(even if they do a 50 now) this bull market can continue. Or JPow will continue to try to talk tough but markets will not believe him which is what seems to be happening now.

IMO if TSLA can break 181 tomorrow I don’t see why we cannot hit 200 by Friday. I have 185s and 190s CCs open and will close them if TSLA breaks 181.

Sorry but I thought you were calling for a double top at 181? Now that we broke through that resistance aren’t we looking at 196-197 as next major resistance. 184/185 seems like there is some resistance but by the looks of it we will gap up tomorrow.

The big boys who were buying the 200 weekly calls obviously had a plan. I’m not saying don’t plan for the correction but take it day by day. Markets are maybe getting ahead of themselves but I feel like TSLA has room to run.

 

[dc_h]

I have 3Feb$125 CC on a $116 buy-write that I’m considering to roll to 17Feb$180+ which is about where net gain (sto-btc+unrealized capital gain) starts to go positive. However, this is in a non-taxable account, so if you are taxable that would add another cost and factor to consider, of course. Comparing to letting assign and rebuying shares and writing a $5 ITM CC — seems to yield a slightly higher net gain over next 2 weeks……tentatively.

I just rolled 155 and 167.50 calls to next week and will look for a dip. I got credit and if we don't fall next week, I'll roll for credit again and wait for a dip. In the run up in 2021, I let them get called and either chased the price up, sold puts at a higher price than I sold, or bought leaps. All were bad strategies as we moved to a down stretch. We seem to be in an up stretch that could last a long time, but even that doesn't go in a straight line.
That said, as noted, I have made many mistakes in the last 2 years. Hopefully I'm learning the right lessons.

 

[Max Plaid]

Love your idea of managing a DITM call to an ATM straddle or an ITM put.
Really opens up the imagination!

Yeah, the straddles are great for healing positions when they're not more than 10% ITM, then the extra premium from the other side of the trade make moving closer to the money that much easier

 

[EVNow]

Oh well, looks like I'll have to roll my -175/+190 calls to something like -185/+250.

As I said, this is a good test for my spread as a hedge strategy.

 

[rikkert]

Not rolling 3 Feb 190 CCs for half of my shares yet... there's still a change the week ends < 190

 

[BornToFly]

Oh well, looks like I'll have to roll my -175/+190 calls to something like -185/+250.

As I said, this is a good test for my spread as a hedge strategy.

Didn't you start with a maximum spread/loss of $5? Now you are talking about increasing the potential loss from $15 to $65? Be careful.

 

[chrsk]

Not rolling 3 Feb 190 CCs for half of my shares yet... there's still a change the week ends < 190

I guess Amazon, Apple and Alphabets results will push the marked in either direction tomorrow.

By bet is on good results this evening, will be fun to see where we might end up then