Wiki Selling TSLA Options - Be the House

[mongo]

I was actually musing over this the other day, thinking there might be a good exit-strategy rule of thumb based on some of the greeks.

For e.g. we know for a long option, Theta starts negative and continues to decrease as you approach expiry and the intrinsic value falls. And Delta starts positive, grows as an OTM option approaches ITM, or falls as an ITM option approaches OTM. So there may some sort of signal one could derive when Theta grows larger than Delta times the average daily Drift... which would be something like a proxy for the average expected daily change in an option's value.

Yeah, Theta vs Delta gives a glide slope of stock price change needed to, at a minimum, maintain value. If that becomes greater than one's expectation for the stock performance (over allowable time frame), it may be time to exchange positions.

However, it can also be indicative of a higher return position if there is a spike in the preferred direction.

 

[bkp_duke]

Gamma squeeze?

 

[SebastienBonny]

Rolled 210CC to 225CC for next week for a small credit (0.30) when we were at 208.
Getting closer and closer to the point I can let it run, because no worries about getting assigned anymore.
At that point I can start rolling it for the same strike or a strike higher to consistently get some premium out of it.
Question is whether we'll keep rising

 

[intelligator]

Wow, everybody wants some I'm looking for something safe tomorrow. Following a strike through line based trajectory (no science or TA here) and similar same day spikes, what the probability that the price end the day near 205?

 

[Max Plaid]

It's all a bit manic, isn't it?

I closed out 13x -p180's for pennies - yes likely would have expired, but for the peace-of-mind it's worth it

STO 15x 2/17 -c240 @$2.55

Rolled 13x -195 to 2/17 15x -p215 & 10x -c215 -> I guess you'd call that a "ratio straddle", so gone heavier on the puts to reduce the call side of things

Just need one week with a close near my strikes... pfff! Or to chase it up to $300, then I don't care any more... I prefer to keep half my shares, but if they all somehow get sold 300n and above I won't weep buckets either

Also still in play:

45x 03/03 -c300
11x July 21 -250

Now if someone could just fix GOOGL...

 

[kcveins]

Rolled over my 02/10 210cc to 02/17 225cc - was happy to get a nice even swap

 

[OrthoSurg]

FOMO then sell off
Rinse and repeat

 

[CHGolferJim]

Rolled 210CC to 225CC for next week for a small credit (0.30) when we were at 208.
Getting closer and closer to the point I can let it run, because no worries about getting assigned anymore.
At that point I can start rolling it for the same strike or a strike higher to consistently get some premium out of it.
Question is whether we'll keep rising

Considering, but would really like my 10Feb$210 CC to expire, will see what they’re going for tomorrow if there’s a dip.

 

[dc_h]

It's all a bit manic, isn't it?

I closed out 13x -p180's for pennies - yes likely would have expired, but for the peace-of-mind it's worth it

STO 15x 2/17 -c240 @$2.55

Rolled 13x -195 to 2/17 15x -p215 & 10x -c215 -> I guess you'd call that a "ratio straddle", so gone heavier on the puts to reduce the call side of things

Just need one week with a close near my strikes... pfff! Or to chase it up to $300, then I don't care any more... I prefer to keep half my shares, but if they all somehow get sold 300n and above I won't weep buckets either

Also still in play:

45x 03/03 -c300
11x July 21 -250

Now if someone could just fix GOOGL...

Ask ChatGPT what GOOGL needs to do to fix itself.

 

[Cherry Wine]

I have been chasing the stock with some cash secured puts ever since the earnings call and can't get the damn things to assign, even with aggressive ITM strikes! Moved them to $220 expiring 2/17. Using the cash to rescue CCs, and secure some downside protection at the same time in the form of long puts (technically making the CSPs spreads, but I don't really regard them that way).

 

[Blitz3RS]

Considering, but would really like my 10Feb$210 CC to expire, will see what they’re going for tomorrow if there’s a dip.

Similar boat but with 220CCs on the line. I have rolled this one now twice before. Really hoping to be done with this once and for all, then gunning for a near end of year expiration/high strike (that I would be happy with having called away either way) and not worrying about these jumps week to week (basically moving to a fire and forget strategy.

Weeklies are too unpredictable.

 

[CHGolferJim]

Similar boat but with 220CCs on the line. I have rolled this one now twice before. Really hoping to be done with this once and for all, then gunning for a near end of year expiration/high strike (that I would be happy with having called away either way) and not worrying about these jumps week to week (basically moving to a fire and forget strategy.

Weeklies are too unpredictable.

Those are points well taken, thanks for the nudge. Might consider a mixed approach of weeklies, buy-writes, quarterlies and yearlies after clearing the current contracts. Imo, weeklies/biweeklies have higher net return over the year, but do require more work. Right now I’m willing to do it, but would like to reduce the workload once winter is done.

Otoh, the “workload” is mostly keeping on top of TMC and limited other sources for timely and accurate news about our wonderful TSLA/Tesla. I wonder if a new approach will actually save any time

 

[myt-e-s-l-a]

Time to fade Tesla

STC 1000 TSLA @ 213
and
STO 10x 20230217P195 @ 3.10

 

[BornToFly]

I wonder if the markets are selling off a bit to de-risk CPI next week, only to rally strong if CPI is cool....

 

[juanmedina]

I bought some NVDA puts so far looking good. I hope Tesla keeps rising until the share holders meeting.

 

[bingoz]

I bought some NVDA puts so far looking good. I hope Tesla keeps raising until the share holders meeting.

I just hope TSLA close above 200 this week.

 

[Max Plaid]

I just hope TSLA close above 200 this week.

Looks like c200 and probably c205 are neutralised by puts tomorrow, so the battle will be over 210 - of course if we get another shitty macro day it could pull down everything with it. That being said macro's due for a green day IMO (no scientific facts behind that, just divination from what I saw in the cat's litter tray)

 

[UltradoomY]

Looks like c200 and probably c205 are neutralised by puts tomorrow, so the battle will be over 210 - of course if we get another shitty macro day it could pull down everything with it. That being said macro's due for a green day IMO (no scientific facts behind that, just divination from what I saw in the cat's litter tray)

Indeed - I will be looking to open a partial ITM BPS tomorrow for next week again.
Has worked well the past couple of weeks (definitely not advice)

Looking for -$215P / +$205P for somewhere around $8-9 each

Will look to close again on Monday

Pulled in $5 a contract for the past couple of weeks doing this and using proceeds to buy 03/03 Calls - were the $210's but will sell those tomorrow and move to $225's as well for the short scalp run up to Investors day.

Probably load up some Bought Puts the day before Investors day just in case a sell the news event.

 

[Max Plaid]

Indeed - I will be looking to open a partial ITM BPS tomorrow for next week again.
Has worked well the past couple of weeks (definitely not advice)

Looking for -$215P / +$205P for somewhere around $8-9 each

Will look to close again on Monday

Pulled in $5 a contract for the past couple of weeks doing this and using proceeds to buy 03/03 Calls - were the $210's but will sell those tomorrow and move to $225's as well for the short scalp run up to Investors day.

Probably load up some Bought Puts the day before Investors day just in case a sell the news event.

Yeah, I need to be selling puts on the way up, well I am, but they're mostly being used to salvage the short calls that got caught in the reversal. Maybe this week I'll be able to extract myself from those now I have -215 15p/10c straddle -> biased on the put side and 15x -c240's to help grease the machine too

TSLA has been on one hell of a streak and we're into a big resistance-zone now corresponding with multiple support last October after the initial dump down from 300, so might need to consolidate around here a bit - or it might just ignore it and carry on, who knows!

Tush, listen to me like I know what I'm talking about... I don't, but it seems logical...

 

[Krugerrand]

Looks like c200 and probably c205 are neutralised by puts tomorrow, so the battle will be over 210 - of course if we get another shitty macro day it could pull down everything with it. That being said macro's due for a green day IMO (no scientific facts behind that, just divination from what I saw in the cat's litter tray)

Hmmm, just checked mine. It says something completely different. ‍