Wiki Selling TSLA Options - Be the House

[Jim Holder]

Market giving me spooky feelings, plus several attempts for TSLA to get back to HOD was knocked down again and again

For safety and discipline I went flat on my option positions towards the end of the day, closing out all my -C and -P to capture gains. I will likely re-position tomorrow based on what the market presents. The only PUTS I left were some garbage puts back from December that held up my account during the scary lows. Wasn’t worth closing.

(Maybe this was an emotional move and TSLA rebounds…)

Meantime, I STO -C 25x 3/17 240. Highly doubtful TSLA will hit $240 in 22 days (and if it does I’m happy to let shares go at that price since this lot was trapped swing shares and not HODL lots) and if the market/TSLA gets whacked tomorrow or next week I could BTC for whatever gains it gives.

If TSLA mounts and holds $206+ tomorrow or Monday I’ll consider STO 10x -P $170 for May expiration, and ride TSLA up until it shows topping weakness and (congestion zone; loses stochastic over 60, etc), possibly as soon as next Wednesday.

Re my straight shares, I have them in various lots, from $215 all the way to $358 (before I learned how to spot tops and get out before it drops to far…learned my lesson!).

Will prune some of these based on price action to free up cash for buying next dips at $160-180, and will do as @dl003 suggested and STO $180 -P 60 days out against any shares I sell at a $8-10 loss, etc.

Interesting times!

 

[EVMeister]

Market giving me spooky feelings, plus several attempts for TSLA to get back to HOD was knocked down again and again

For safety and discipline I went flat towards the end of the day, closing out all my -C and -P to capture gains. I will likely re-position tomorrow based on what the market presents. The only PUTS I left were some garbage puts back from December that held up my account during the scary lows. Wasn’t worth closing.

Meantime, I STO -C 25x 3/17 240. Highly doubtful TSLA will hit $240 in 22 days (and if it down I’m happy to let shares go at that price), and if the market/TSLA gets whacked tomorrow or next week I could BTC for whatever gains it gives.

If TSLA mounts and holds $206+ tomorrow or Monday I’ll consider STO 10x -P $170 for May expiration, and ride TSLA up until it shows topping weakness and (congestion zone; loses stochastic over 60, etc), possibly as soon as next Wednesday.

Re my straight shares, I have them in various lots, from $215 all the way to $358 (before I learned how to spot tops and get out before it drops to far…learned my lesson!).

Will prune some of these based on price action to free up cash for buying next dips at $160-180, and will do as @dl003 suggested and STO $180 -P 60 days out against any shares I sell at a $8-10 loss, etc.

Interesting times!

View attachment 910575

You really don't live up to your surname, do you?

 

[Jim Holder]

You really don't live up to your surname, do you?

I’m a HODL at heart! I also trend trade/swing/scalp (ala Pierre Roberge) which helps me add shares to hold too.

 

[adiggs]

Closed 2/24 BPS -177.5/+167.5 for .14, sold at 1.25 , same rationale as @adiggs AND I want Friday off . I had the other for -182.5/172.5 for .04 that was also sold at 1.25 but that didn't fill. Ideally the -177.5 could have sat unfilled instead. Nonetheless, extremely happy to lock in those credits.

NOT-ADVICE
One thing I've learned to do on closes like that .04, is just do them. If I've invested the mental energy and time into deciding the position is ready to close, then whether I close for .04 or .05 makes no meaningful difference in the profit. Or even .06.

On the really low cost positions like this, the bid/ask is usually 1 or 2 pennies - I frequently close each leg separately on a market order. Close and be done.

I've had some situations where a nearly 0 close turned into a multi $$ loss / roll in a few hours. It's rare at most, but if I've put in the energy, why wait? Each options contract is worth $1 per $0.01 of premium. If you had 100 spreads open and were closing at .04 vs. .05 then you're looking at $100 difference in the end result. Against a position that is 1.10 or 1.11 profitable, you'll either realize a $11,000 or $11,100 gain. Is that extra $100 worth another day of watching and thinking, and the possibility it falls into the ******?

That is my own rationale anyway.

 

[SebastienBonny]

NOT-ADVICE
One thing I've learned to do on closes like that .04, is just do them. If I've invested the mental energy and time into deciding the position is ready to close, then whether I close for .04 or .05 makes no meaningful difference in the profit. Or even .06.

On the really low cost positions like this, the bid/ask is usually 1 or 2 pennies - I frequently close each leg separately on a market order. Close and be done.

I've had some situations where a nearly 0 close turned into a multi $$ loss / roll in a few hours. It's rare at most, but if I've put in the energy, why wait? Each options contract is worth $1 per $0.01 of premium. If you had 100 spreads open and were closing at .04 vs. .05 then you're looking at $100 difference in the end result. Against a position that is 1.10 or 1.11 profitable, you'll either realize a $11,000 or $11,100 gain. Is that extra $100 worth another day of watching and thinking, and the possibility it falls into the ******?

That is my own rationale anyway.

Absolutely, the amount of money we are dealing with can't be compared to closing a contract for a few dollars more or less.
Another reason not to close too late is you may miss on new opportunities because you left a contract open in the hope to gain a few more dollars.
I'd rather close a sold contract for a few dollars more to free up shares and take new possibilities that may come.

 

[Max Plaid]

NOT-ADVICE
One thing I've learned to do on closes like that .04, is just do them. If I've invested the mental energy and time into deciding the position is ready to close, then whether I close for .04 or .05 makes no meaningful difference in the profit. Or even .06.

On the really low cost positions like this, the bid/ask is usually 1 or 2 pennies - I frequently close each leg separately on a market order. Close and be done.

I've had some situations where a nearly 0 close turned into a multi $$ loss / roll in a few hours. It's rare at most, but if I've put in the energy, why wait? Each options contract is worth $1 per $0.01 of premium. If you had 100 spreads open and were closing at .04 vs. .05 then you're looking at $100 difference in the end result. Against a position that is 1.10 or 1.11 profitable, you'll either realize a $11,000 or $11,100 gain. Is that extra $100 worth another day of watching and thinking, and the possibility it falls into the ******?

That is my own rationale anyway.

Couldn't agree more, I've had positions on a Thursday with 99% profits, left them overnight only to go ITM and big losses, makes no sense, close them out...

I go even further these days, unless I have a position as a hedge, if it goes +50% within 24 hours, I take it, 80% mid week, the same, 90% by Thursday and usually that's good enough too (although I do have a thing for 95% if I see it coming)

If you take profits on all your trades like this you'll never lose money - sounds dumb, but it's true

 

[SebastienBonny]

Couldn't agree more, I've had positions on a Thursday with 99% profits, left them overnight only to go ITM and big losses, makes no sense, close them out...

I go even further these days, unless I have a position as a hedge, if it goes +50% within 24 hours, I take it, 80% mid week, the same, 90% by Thursday and usually that's good enough too (although I do have a thing for 95% if I see it coming)

If you take profits on all your trades like this you'll never lose money - sounds dumb, but it's true

Same. If your position goes to 50% in such a short time, you should take that profit and wait for new chances.
Seen the stock go 10 down to rebound 5 up on the same trading day multiple times last weeks.

 

[Max Plaid]

Same. If your position goes to 50% in such a short time, you should take that profit and wait for new chances.
Seen the stock go 10 down to rebound 5 up on the same trading day multiple times last weeks.

If you have the time and the patience, you can trade the same strike calls or puts multiple times in a day and make $$$, but it's very tiring, and impossible if you have a day-job...

 

[intelligator]

^^^ day trading in-between day job breaks is tough. that's exactly what happened yesterday, two rushed orders, one hit, one missed by a penny. the habit of choosing midpoint is generally good, except when bid/ask is .03/.05 ... was completely blinded by the need to close. logging the orders late last night, I did get the one closest to the money (-187.5/+177.5) off the table. The -182.5/+172.5 BPS I'll nail this AM. thanks all.

 

[jeewee3000]

If you have the time and the patience, you can trade the same strike calls or puts multiple times in a day and make $$$, but it's very tiring, and impossible if you have a day-job...

Tell me about it .

 

[SebastienBonny]

If you have the time and the patience, you can trade the same strike calls or puts multiple times in a day and make $$$, but it's very tiring, and impossible if you have a day-job...

Fortunately working in Belgium has soms advantages in this case. When my day-job is over there is only one hour of trading passed .

Looks like we might close our sold calls today...
If I get 60% out of my sold 240CC from yesterday, I'll close it and wait for an upside.
Should be fairly easy if we open around the current premarket SP of 196ish.
PCE is on our side today.

A lot of fuzz going on about a new Tesla model on Twitter (that might be announced next week) so it might be better freeing up all shares before that.
Can't really see a buy the rumour up to now since we are trading somewhat sideways last few weeks.

EDIT: closed 240CC at open for 0.53 or more than 60%.

 

[SpeedyEddy]

I jumped back in on stocks premarket (bit too early though) having -CC outstanding to cover for most of it's loss. Probably will be ending the week with 25 more shares than at the beginning, which I call to be a nice profit in a flat week. It is my pension, being retired early. more than a month's pay of my former job.... in a week...

 

[SpeedyEddy]

We have crossed the short time upward trend line downward . Waiting for a good jettison. Rejected an early chance to jump off, now regretting it., so thinking about taking this bail-out moment. (Waiting for SPY-daily options volumes)
Edit, they are out: SPY 395.5 is the target now.
So I 'm bailing out indeed /Edit

 

[EVNow]

With ER related $185 calls still, I sure hope we don't hold $200

Oh well, rolled -185 call to -195 for a small debit. If the price comes down on Mar 1st will try to buy a call to make it a spread to protect against a jump after investor call.

And -182.5 put to -170.

 

[Jim Holder]

STC the 25x 3/17 240 -CC at opening lows today for $2k gain for holding overnight ($194 from $203).

STO 20x 3/17 170 -CSP for $4.50 at same lows, as $193 seems to be holding for now. Will BTC on next pump over 200’s (if/when we get one). If we don’t bounce I’ll still hold, lots of levels to breech before $170 within 21 days, and even if it goes ITM I can take the shares.

 

[juanmedina]

I closed all my calls. Maybe we will get an afternoon rebound or something nice next week. What happened to the share buyback? is that on the table for the next week meeting?

 

[Max Plaid]

So this is why I didn't close out the 3/3 -c200's yet for profit, they are cancelling-out this week's -p200's, I can wait until closer to market close then buy back both and make full profits on the puts...

In the meantime STO 20x 3/3 -p180 @$3.6 -> I'll take shares at that price...

 

[intelligator]

after three strong gamma positive days, we are back to negative. OI reduced at 190 and 200 (today's closing range?) perhaps due to many of those positions below and above were closed out yesterday. for whatever reason, c210 OI increased some.

I changed the Put OI marker to red, easier on the eyes. didn't update the chart from last night. OI is updated nightly and published the next morning, hence looking at the OI and gamma in the morning. Thanks for that way back then suggestion @Yoona !

 

[vikings123]

Sold 10X -195C/-195P short straddle expiring today for 4.11

I don't see us finishing above 199.11 or closing below 190.89 and that's a lot of extrinsic given I initiated the trade when TSLA was trading at 194.40. OK with getting assigned on the puts too

edit: I will very likely close these before market close.

 

[dl003]

If TSLA cannot close today above 197, then I expect it to break 190 next week before bottoming out around 187. The target for the rebound is lowered now to 205. Will be even lowered if it cannot close above 197 today. Ultimately I see us bottoming out at 180 before bouncing to 190-200 just before P&D.