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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
SpeedyEddy
Active Member
This week - 03/10 - opened them separately this morning - $4.50 for the call and $3.50 for the put each
I’ve noticed with my new brokerage that it’s more difficult to enter orders at the market open for about 30 min. Too much activity for their servers. So today I set some bear call spread orders before open, trying to estimate what the high might be. Didn’t work. I’ve also noticed that spread orders often don’t hit, even between the bid and mid-point. Pretty sure they are scraping extra pennies off of me, but can’t do much about it without trying another brokerage.
Anyway, lowered the asks and they eventually hit, so now have some pretty wide short credit spread (ICs) for Friday in various accounts:
+p165/-p185/-c220/+c240, +p175/-p185/-c220/+c230, or similar. Still have -cc200s sold in the low $6s / high $5.8s that are decaying nicely.
Finally, I tried something very daring, maybe stupid, as an experiment. Sold 1x +p175/-p195/-c197.50/+c217.50 at $4.50 per side, so $900/$2000(risk)=45%. Tried to time the two sides, certainly not perfect, but better than nothing. It sure feels like the options market is controlling the SP this week, especially with today’s macros vs TSLA, and we’re headed for a $195-$200 Friday close. I could be completely wrong, and lose the $2000 at risk, but with such a wide spread I should be able to roll/widen for credit. Definitely will need to monitor closely, probably going right into Friday’s close.
I’m hoping to earn enough this week to buyback another ATM Jan24/25 CC and/or CSP. Will probably need $6k-$7k for that, so we’ll see. I have more than enough cash to do the buyback, but want to keep enough buffer to deal with closing and/or rolling spreads. I can only roll one side of an IC at a time (four leg trade limit), so need enough cash to close the winning side, before rolling the losing one. Still learning the ropes on this and starting small.
Edit: yahoo shows 1.78M shares traded at 11:07. Wow, somebody wanted in today.
Anyway, lowered the asks and they eventually hit, so now have some pretty wide short credit spread (ICs) for Friday in various accounts:
+p165/-p185/-c220/+c240, +p175/-p185/-c220/+c230, or similar. Still have -cc200s sold in the low $6s / high $5.8s that are decaying nicely.
Finally, I tried something very daring, maybe stupid, as an experiment. Sold 1x +p175/-p195/-c197.50/+c217.50 at $4.50 per side, so $900/$2000(risk)=45%. Tried to time the two sides, certainly not perfect, but better than nothing. It sure feels like the options market is controlling the SP this week, especially with today’s macros vs TSLA, and we’re headed for a $195-$200 Friday close. I could be completely wrong, and lose the $2000 at risk, but with such a wide spread I should be able to roll/widen for credit. Definitely will need to monitor closely, probably going right into Friday’s close.
I’m hoping to earn enough this week to buyback another ATM Jan24/25 CC and/or CSP. Will probably need $6k-$7k for that, so we’ll see. I have more than enough cash to do the buyback, but want to keep enough buffer to deal with closing and/or rolling spreads. I can only roll one side of an IC at a time (four leg trade limit), so need enough cash to close the winning side, before rolling the losing one. Still learning the ropes on this and starting small.
Edit: yahoo shows 1.78M shares traded at 11:07. Wow, somebody wanted in today.
Last edited by a moderator:
EVNow
Well-Known Member
I'm finally out of Wash sale timeout. So, STO P182.5 - can take the shares if SP falls well below that (or roll if not DITM).
SebastienBonny
Member
Price still too high comparing 3 Performance to S LR and Y Performance to X LR. Shouldn’t be more than 30K higher IMO.
This difference isn’t justified and not worth it for me. 80K is starting to look interesting.
Closed 1x 1/25 -c400
Opened 1x 1/25 -c600
Opened 2x 3/10 -c200
Opened 2x 3/10 -p187.50
Opened 1x 1/25 -c600
Opened 2x 3/10 -c200
Opened 2x 3/10 -p187.50
What's your understanding of the timeout period for wash sales? I'm also in timeout after getting assigned on a 160C on Feb 14th. When I spoke with TDA, they said that the 26 shares I purchased in the 30 days prior to Feb 14th would count against the 100 shares assigned for wash sale purposes, but I could buy new shares going forward. But my CPA told me that the wash sale rules apply to share purchases 30 days prior and 30 days after the sale of the stock. I'm being conservative and going with my CPA's advice, but curious as to what others' understanding of the rule is...
I could definitely be wrong here but my understanding is that the next 74 shares you buy until March 14 would be subject to wash, since you already washed 26/100.
I'd set an order for -182.50/+172.50 BPS @ 1.00 ... could have done better by taking -180/+170 for the same premium instead had I waited. Nonetheless, comfortable with that paired to a -215/+225 BCS I opened Friday for this week.
Was there a loss in any of those transactions? If there was no loss(after closing a transaction) I'm not sure why you are worried about wash sale.
EVNow
Well-Known Member
61 days = 30 days prior + day of the sale + 30 days after.
I think the main unknown is how calls/puts are treated. Plain shares, there is no ambiguity.
BTW, In Fidelity there is a "closed positions" report which shows wash sales with an asterisk. Other brokerages report that too.
ps : Assuming you want to recognize losses on the sale. If there is no loss (or too small for you to care) - you don't have to wait. You could also buy something like TSLL while you wait out your wash sale timeout.
In for 175/165 put spreads for this Friday at .33. I like being another $5 lower strike than last week. A 2/3rds profit close is 2% on the capital at risk, and that's a result I will like. I mostly ignored macro in considering this position - I'm expecting the upcoming economic news this week to have a lightweight impact - mostly because we've already cranked a lot of this in, so there's a lower chance of a surprise, and any surprise will be relatively low magnitude (i.e. - a 3/4th rate increase from .25 to 1.00, and mostly unexpected, is a LOT bigger than a 1/2 point change from 4.5 to 5.0). Which is applying logic to the market - these could be famous last words.
I looked at opening cc for this Friday, as well as the April monthly expiration. I wouldn't expect a good entry on a modestly down day ... and I didn't find one! I'd probably be doing 215 strike for this Friday to get enough credit to make it worthwhile, and any cc strike under 250 still makes me uncomfortable. Maybe down to 230. So I am continuing with not selling cc.
I looked at opening cc for this Friday, as well as the April monthly expiration. I wouldn't expect a good entry on a modestly down day ... and I didn't find one! I'd probably be doing 215 strike for this Friday to get enough credit to make it worthwhile, and any cc strike under 250 still makes me uncomfortable. Maybe down to 230. So I am continuing with not selling cc.
SpeedyEddy
Active Member
Because I could not see these possibly be $8 each. (8 for put and 8 for call,), but that was not what you meant..
SpeedyEddy
Active Member
This is the week to go 180 (and below later imho..) SPY almost hit resistance 408 and bounced back down. This is the signal the markets were waiting for. Brace!
Just found a new research tool, showing largest options trades today. I think green means at ask, red at bid, and black at market. Interesting, not sure what to make of it but I highlighted a few trades that puzzle or worry me for the short term. The ITM 185/190 call spread for 3/10 is worrying if sold as credit spread (bearish to below 185), but maybe bullish if debit. The 3/17 p160s and p250/p260 spread are perplexing. Thoughts?
), but maybe bullish if debit. The 3/17 p160s and p250/p260 spread are perplexing. Thoughts?
Meaning ... we can pound a nail into the ceiling?
With Powell talking tomorrow and Wednesday, it's less worrisome than normal.... He could make the markets rocket or tank with one sentence.
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