Wiki Selling TSLA Options - Be the House

[Jim Holder]

Would really appreciate if any of you can share what you practice re when to BTC covered calls for gains.

If we are still in a downtrend, it seems to make sense for me to hold onto them for 90%+ gains until TSLA shows signs of a reversal up, on the other hand all the gains could be wiped out on a rapid rise, so perhaps better to close tomorrow while TSLA is still in weakness. But selling tomorrow @ 40-50% may leave $$ on the table.

What would you do if you were holding these positions?

Thanks in advance.

(Re the puts I don’t mind taking assignment, I can then sell CC against them.)

 

[Oil4AsphaultOnly]

Would really appreciate if any of you can share what you practice re when to BTC covered calls for gains.

If we are still in a downtrend, it seems to make sense for me to hold onto them for 90%+ gains until TSLA shows signs of a reversal up, on the other hand all the gains could be wiped out on a rapid rise, so perhaps better to close tomorrow while TSLA is still in weakness. But selling tomorrow @ 40-50% may leave $$ on the table.

What would you do if you were holding these positions?

Thanks in advance.

(Re the puts I don’t mind taking assignment, I can then sell CC against them.)

View attachment 915037

I also have 3/10 -210c. I have a BTC limit order on them for $0.15. At that price, it would be a 90% profit and it wouldn't matter if I left a few additional bucks on the table by closing early.

 

[Jim Holder]

I also have 3/10 -210c. I have a BTC limit order on them for $0.15. At that price, it would be a 90% profit and it wouldn't matter if I left a few additional bucks on the table by closing early.

I would also love to close them at $0.15, my question is in a fickle market what is the best practice, to hold out for <$0.50 to BTC and possibly miss out because it never hits, or take the money and run.

Argument to BTC now can be that TSLA can revisit 195-200 next week and one can re-open them again. Argument against is that we may continue down over the next few weeks and that’s a lot of gains to leave on the table.

Just curious how you all think about and approach this so I can learn best practices.

 

[vikings123]

I would also love to close them at $0.15, my question is in a fickle market what is the best practice, to hold out for <$0.50 to BTC and possibly miss out because it never hits, or take the money and run.

Argument to BTC now can be that TSLA can revisit 195-200 next week and one can re-open them again. Argument against is that we may continue down over the next few weeks and that’s a lot of gains to leave on the table.

Just curious how you all think about and approach this so I can learn best practices.

If the strikes are far OTM I’d probably just let them expire worthless. But if closing these allows you to open new positions(like in an IRA for example) I will take the gain(70-80%) and wait for a spike in SP to sell again at lower strikes.

 

[MikeC]

Indeed, the 180C wil go OTM this week, I think. Or at least SP much closer to 180, so I will earn a bit of premium to be left. This week and next week.
Some of you are making the same mistake as in November-januari. In a downtrend, you sell calls, not puts.
I think it will all be short-lived and of course nobody knows the next bottom. I think about $ 143 later in march, but the recovery after whatever bottom could be sudden and steep, so I won't be as stubborn as myself before. Many of you said you learned a lesson, but I not only did so, but am practising this lesson now.
Don't fight against the FED. The stockmarket was leaning on daily SPY options, but today again the bottom fell out of it intraday, so I think tomorrow volume on that will be much less, so markets will get more natural and then, the Vix will go sky-high, fear-index low, Nasdaq to 10.0000 and our dear $TSLA will follow, but resurrect fast and steep again. (SPY to and beyond 348?)
(Plus: I was a fool, not to short Lucid and Rivian the past weeks. I really thought about it, but know too little about them to follow through)

You could be right, but why not just buy puts if so confident? Seems like weeklies would pay off more without putting shares at risk.

 

[EVNow]

What would you do if you were holding these positions?

I’ve 205 calls and I’m not planning to BTC anytime soon. Usually I try to buy Friday towards the end for 1 cent if SP is far away - say > 5%

I don’t think there is one strategy that works best per se - it’s a question of risk/rewards.

 

[traxila]

Debt ceiling default would provide a black swan, don't y'all think?

An actual default?

Financial collapse on the order of the fall of the Roman Empire.

Better ditch your stocks now and load up on guns and bunkers. Lifetime supplies of MRE?

 

[Jim Holder]

https://twitter.com/x/status/1633318276712505346

Might make sense to BTC 50% of the -Cs to capture gains and wait for pop to reposition again in case 185 bounces.

 

[intelligator]

Gamma went slightly lower from morning to close, increased by .005 at p180, p185, p190, p195. c200 reduced by the same, covering most all of the 0.03 difference from -0.01 seen this morning/last night to end of day. The rest of the strikes remained about the same. I'm going to let the -215/+225 BCS drain until Friday morning then close to free the day. The -182.5/+172.5 BPS I'll need to keep an eye on. Pre-market is mixed, who knows what we are up against. 190-200 range seems probable, watch below ... p175, p180, p185 OI had a subtle increase overnight.

 

[ReddyLeaf]

Would really appreciate if any of you can share what you practice re when to BTC covered calls for gains…….snip…….

What would you do if you were holding these positions?

I rolled 3/10 -c200s down to 3/10 -c195s today, probably against several people’s non-advice. However, I also have some put spreads (+p170/-p180s, +p170/-p185s, +p165/-p185s) that are part of ICs and are being challenged, so they somewhat balance the -c195s. I’m planning to close the call spread side tomorrow (unless we gap up and show strength) and roll the put spreads down and out. Probably will roll the CCs out as well to pair/strangle. In your shoes, I would probably do something similar, roll this week’s CCs down and out to strangle with the puts. Given J.Powell’s speech, and the TA channel below, I think we’re still in for some more selling, though don’t know if we close below $180 this week, next, or even lower. Perhaps the options market will force the MMs to support the SP, but even if so, it would only be temporary. Don’t fight the Fed.

 

[ReddyLeaf]

https://twitter.com/x/status/1633318276712505346

Might make sense to BTC 50% of the -Cs to capture gains and wait for pop to reposition again in case 185 bounces.

Thanks. I miss @Yoona and don’t follow Twitter, so your posts here are all that I see of her.

 

[EVNow]

I rolled 3/10 -c200s down to 3/10 -c195s today, probably against several people’s non-advice.

I got caught with puts around 340 ( 1020 presplit) because I moved up the put strike mid-week after SP rose up. There was a big reversal (IIRC because of the bird site) … and after nearly a year still under water

 

[SebastienBonny]

I would also love to close them at $0.15, my question is in a fickle market what is the best practice, to hold out for <$0.50 to BTC and possibly miss out because it never hits, or take the money and run.

Argument to BTC now can be that TSLA can revisit 195-200 next week and one can re-open them again. Argument against is that we may continue down over the next few weeks and that’s a lot of gains to leave on the table.

Just curious how you all think about and approach this so I can learn best practices.

I closed 210 CC yesterday for this Friday for 80% gain since last Thursday.
I'm not thinking about what the stock is going to do today, but I'd like to keep options open.
Say stock goes to 195 today and I hadn't closed yesterday, I wouldn't be able to open a new contract for next week at 210 or higher, because those 100 shares are already blocked.

If stock keeps going down, well then you missed some gains, but on Friday I tend to open new contract for the next week, even if we're not green.

 

[Right_Said_Fred]

I got caught with puts around 340 ( 1020 presplit) because I moved up the put strike mid-week after SP rose up. There was a big reversal (IIRC because of the bird site) … and after nearly a year still under water

How did these puts not get assigned yet? Pure luck? There were assignments on a massive scale when we dropped under 200 the first time and there was another round when we dropped to 102. Even 2024 and 2025 puts were not safe.

 

[SpeedyEddy]

I haven’t tried selling ITM -CC, can you share how that works and what your intention is with a 180 strike? Would love to learn more.

Simple, I sell (a 10-dollar) ITM Call when I am convinced of a dip. Shareprice falls, maybe not in time under strike-price in which case I close with a gain. (Delta plus Theta). If it goes below strike price the $ 10 + premium is cashed.
If SP rises I lose Delta minus Theta.
So for instance I sold 3/10 C 180 for 12.18 bucks yesterday in one of the tops. Closeprice yesterday already @ 9.30-ish and with this premarket will drop another 2.23 dollar. So (SP opening 185 and a bit) even if I would close at opening I would have at least a 5 dollar gain on a 12 dollar (or infinite!!) risk. This of course can go horribly wrong on a fast SP-rise. But that's the risk, rewarded with the premium.
I don't see any relief until 180-ish.
Chances are that I have to close being this deep ITM (or roll if my conviction is not altered). chances of loosing are fading away every day.
Also sold some shares, increasing my gain if I am able to buyback near a bottom, so big into the short-term dip.
CONVICED TOO THAT WHEN THIS ALL IS OVER WE WILL HAVE THE BEST STOCK EVER, so in the long run holding the stock will ALWAYS pay out. If you are young enough: don't ever sell any stock, don't speculate, just buy stock whenever you can. Don't follow SP, just look at fundamentals, which in case of $TSLA are astounding. Every legacy OEM is baffled and does not know what to do. The ones that understand have capitulated to being too little too late, only able to pick up breadcrumbs and not being able to catch up anytime soon. And then we have energy (which is a sure moneymaker) the potential of teslabot and maybe robotaxi. Key is being manufacturing king, see joe justices YouTube on that. The factory is the product.

So I'm just riding the waves trying to accelerate things in this short, but maybe heavy, dip.

 

[SpeedyEddy]

Wait … you are trying to add credibility to your “debt ceiling default” by linking that to sticky inflation. Entirely different things.

BTW, if you see my past posts, you will realize SP falling is actually to my advantage right now. I let my ITM calls execute at 182.5 for tax loss harvesting.

ON TOP OF sticky inflation... (I am Dutch, so maybe I don't write correct english) Of course I understand the difference. But it both is bad news, and you agree being short term negative on SP.

 

[SpeedyEddy]

Would really appreciate if any of you can share what you practice re when to BTC covered calls for gains.

If we are still in a downtrend, it seems to make sense for me to hold onto them for 90%+ gains until TSLA shows signs of a reversal up, on the other hand all the gains could be wiped out on a rapid rise, so perhaps better to close tomorrow while TSLA is still in weakness. But selling tomorrow @ 40-50% may leave $$ on the table.

What would you do if you were holding these positions?

Thanks in advance.

(Re the puts I don’t mind taking assignment, I can then sell CC against them.)

View attachment 915037

All of it is at a risk, you really have to be ready to be accountable for. That said:
Get rid of the short-term -P
Get rid of long term -C (but you can wait a bit until we are bottoming out)
Short term -C look to be safe, the rest can be unsafe when we only get a short and shallow dip, followed by good ER on TSLA (if they really have cut so big as they suggest on cost only). TSLA will be the first to profit after a collapse, because of pricing power. If there is no collapse then it will be even better, both returning me into selling Puts an buying LEAPS

 

[EVNow]

How did these puts not get assigned yet? Pure luck? There were assignments on a massive scale when we dropped under 200 the first time and there was another round when we dropped to 102. Even 2024 and 2025 puts were not safe.

They got assigned - that's why I'm under water - my cost basis is around 340.

 

[EVNow]

ON TOP OF sticky inflation... (I am Dutch, so maybe I don't write correct english) Of course I understand the difference. But it both is bad news, and you agree being short term negative on SP.

Maybe something is lost in translation... But default is considered very low probability and very bad. Similar to nukes.

Combining with sticky inflation is like saying - heart attack on top of a cold

In terms of SP, market trend is down. But you never know with TSLA.

 

[BornToFly]

All of it is at a risk, you really have to be ready to be accountable for. That said:
Get rid of the short-term -P
Get rid of long term -C (but you can wait a bit until we are bottoming out)
Short term -C look to be safe, the rest can be unsafe when we only get a short and shallow dip, followed by good ER on TSLA (if they really have cut so big as they suggest on cost only). TSLA will be the first to profit after a collapse, because of pricing power. If there is no collapse then it will be even better, both returning me into selling Puts an buying LEAPS

Would you sell a few shares in Pre-market now? Apparently there is going to be a recall on some Model Y's that had the steering wheel removed during manufacturing that was never secured back with a bolt. This should be a "stop driving" immediately kind of recall.