Wiki Selling TSLA Options - Be the House

[EVNow]

Rolled to 177.5 for a small credit. I'll take $5 improvement in strike vs no improvement

Any ideas on how best to improve this cash covered put strike using multiple calls/puts ?

I got $8 for this. So one idea would be to split it between $4 put and $4 call spreads (basically IC). That would be something like -P170+157.5 and -C180/+197.5 for March 24th. I could also work this after Tuesday to see where we land after CPI.

Still leaves me short of my re-entry target of $160 ...

 

[Max Plaid]

Why ?

Maybe can accelerate the plans for X? One would hope that better due-diligence would be undertaken compared to the Twitter debacle, and that any deal would exclude current liabilities

Anyway, this is more a discussion for the "other" thread

 

[Jim Holder]

I bought shares in 2021 and 2022. I thought Im not gonna buy in 2023 and instead build up cash from selling options to pay off my house, deleveraging myself. Today I have got enough and so I bought 300s on margin as a reward to myself.

Yep.

Unless you’re being sarcastic, I guess this means you don’t expect us to visit $140 anytime soon?

 

[dl003]

Unless you’re being sarcastic, I guess this means you don’t expect us to visit $140 anytime soon?

When I buy my core shares, what they do in the short term doesnt concern me much. Once my income is higher than my expense and Im debt free, this is truly money I dont need right now. Other people may buy watches and cars to celebrate. I buy TSLA.

 

[Jim Holder]

When I buy my core shares, what they do in the short term doesnt concern me much. Once my income is higher than my expense and Im debt free, this is truly money I dont need right now. Other people may buy watches and cars to celebrate. I buy TSLA.

Excellent!

 

[MikeC]

My 2x -p187.50/-c200 strangle from last week is now:

2x -170p and 1x -175p
1x -c175 and -c180

Not so happy being in puts again with the down week, and I’m expecting downside risk Monday with SVB fallout. Will try to resist temptation to split puts further and get myself into margin trouble if we keep going down.

Also don’t really like holding calls at this low strike but I’m willing to let the shares go at 180 that at least have a lower cost basis.

Basically hoping for a flat week.

 

[Max Plaid]

Don't forget it's a triple-witching OPEX this Friday with Max Pain currently sitting at 180, I could imagine that slipping down a bit as looking at the trading volumes, seems the $10-below-the-SP puts are piling-up like they did in December, doesn't make me feel all warm and cosy inside

For my part, rolling down last week's -195 straddles to -180 made a realised loss of around $7k, but given that I was thinking to allow those puts to assign, having them now at 180 would imply a +$22.5k longer term if I lt them assign this week, which I'm inclined to do if the whole trade goes into a loss again

Sentiment is down the shitter, everyone and their dog expecting the markets to tank, lots going to depend on CPI & FOMC, could flip the whole thing green or send us down fast

 

[SpeedyEddy]

I think confidence may have taken a hit that could crash WS in the next 6 months so I still was -C160 (like 2008). Maybe take my profit/loss on that because cash-rich $TSLA possibly won’t be affected that much (but we have to look which banks they keep their money in) so keep an eye on the exact accounts. Banks with a lot of low-yield bonds are at risk. Their clients possibly will go withdrawing too. So I think it would be interesting to investigate which big banks are in a similar situation and what in-debt-companies have cash piled up in these banks. So I maybe will -C some of those banks and companies instead.

 

[EVNow]

I don't think Treasury wants a repeat of 2008. I think they will quickly find a buyer for the bank (may be end of day today) and bailout / ensure 1:1 reimbursement for all depositors of SVB. They will also probably change rules so that banks don't have to mark-to-market bonds incurring losses - but let the bonds go till maturity.

Anyway, a few days of high volatility for sure.

 

[ReddyLeaf]

Agree with sentiments above. Unfortunately, I can now guarantee the SP will drop more because I bought 60 shares in the $174-$180 range last week. My inability to time the market has returned to maximum. Still have decent cash in all accounts, ready to buy more or manage the open options.

What I learned this week: My 3/10 ICs really only decayed into profit on Friday. All other ICs (rolled out to various weeks 3/24-4/21 to avoid assignments) are still all underwater.

Definitely need to focus on closing and not opening ICs until 1DTE. That’s the theory, so why did I roll/widen 3/10 ICs into these 3/17:
+p140/-p160/-c195/+c215 (10% premium)
+p150/-p160/-c185/+c195 (28% premium)

Hedged the SP drop by rolling CCs down to 3/17 -c175s and 3/24 -c180s. Unfortunately, still have various ICs with -p170s, -p175s, or -p180s that will need additional management if we continue down farther because of SVB contagion. Planning to roll everything down/out and maybe even narrow the IC spreads if needed to manage. I still have January 2025 -c210s, -c230s, and -p200s to roll back into short duration once the ICs are managed, so I suppose that’s some kind of hedge. I’m leaving those long dated CCs alone given the potential financial contagion and the $140 gap from 1/25.

Here’s a look at some of the biggest options trades last Friday. Those long-dated DITM puts have me perplexed, perhaps someone stuck? Highlighting some nice trades: 5000x 165 c/p straddle, 1400x 155c roll for $1 cr, 3/17 1200x c190s & 1177x p166.67s (not paired). Looks like there are others out there who got caught in the 100% January rise, and the 2022 drop. As always, GLTA this and every week.

 

[dl003]

I don't think Treasury wants a repeat of 2008. I think they will quickly find a buyer for the bank (may be end of day today) and bailout / ensure 1:1 reimbursement for all depositors of SVB. They will also probably change rules so that banks don't have to mark-to-market bonds incurring losses - but let the bonds go till maturity.

Anyway, a few days of high volatility for sure.

The cat is out of the bag though. Whether banks are required to carry these losses on their BS or not, people know forced liquidation and realized losses is a real risk during bank runs. Accounting tricks alone wont help. The Fed needs to rethink whether they want to singlehandedly destroy the bond market with continuing rate hikess.

 

[EVNow]

Rolled to 177.5 for a small credit. I'll take $5 improvement in strike vs no improvement

May be I should change this cash covered put to a call spread ....

 

[OrthoSurg]

I was traveling last week to Las Vegas for the job and assist at the AAOS annual meeting. Didn’t really have the time to follow the news and check the stock market. I come back, open this thread, realize we are on the verge of 2008 all over again and regret not rolling back my CCs last week. I was scared for my CCs to get ITM by this year now I am scared to see the SPY go -50%. Time changes so fast. In 2 weeks leaving for one week of Heliski in Alaska and will be totally offline. I will leave my CCs where they are far out in Jan2025. Can’t really manage anything right now in the near term. The only thing I hope is that we don’t go to $60 and I get margin called while skiing. The broker will have a fun time trying to reach me.

The Vegas Loop was closed when I arrived at 11PM Tuesday and was not open Saturday morning when I left for the airport. Was a bit sad. I wanted to try it.

 

[EVNow]

I was traveling last week to Las Vegas for the job and assist at the AAOS annual meeting. Didn’t really have the time to follow the news and check the stock market. I come back, open this thread, realize we are on the verge of 2008 all over again…

Nah … as they say history never repeats, it only rhymes.

Looks like all depositors will be paid in full on Monday. They will likely find a buyer as well.

Nasdaq future is up 1.5%. Ofcourse still expect a volatile few days.

 

[BornToFly]

So CPI is Tuesday. But is the next Fed meeting with rate hike decision not until the 22nd or 23rd?

 

[vikings123]

So CPI is Tuesday. But is the next Fed meeting with rate hike decision not until the 22nd or 23rd?

FOMC is March 22nd.

U.S. Economic Calendar - MarketWatch

U.S. economic calendar consensus forecasts from MarketWatch.

www.marketwatch.com

 

[ReddyLeaf]

So CPI is Tuesday. But is the next Fed meeting with rate hike decision not until the 22nd or 23rd?

Yes, Wednesday 3/22. Bookmark this site which lists all important economic news:
Economic Calendar

 

[traxila]

IMO, Fed goes 25 now and then announces pause (data dependent, yadayada).

Then they all hug each other and try to figure out how badly they screwed this all up the past three years,

 

[SpeedyEddy]

The cat is out of the bag though. Whether banks are required to carry these losses on their BS or not, people know forced liquidation and realized losses is a real risk during bank runs. Accounting tricks alone wont help. The Fed needs to rethink whether they want to singlehandedly destroy the bond market with continuing rate hikess.

But the FED MUST fight inflation, and there is no other way then apply rate-hikes, so they are really cornered, stagflation coming in big time. Rates at this level for really long is not good news either. Any way, fiat money taking a hit, so (I thought I would never think nor say this) bitcoin might be safer then money. for sure Gold. (FTSE down 2% plus after SVB UK taken over for 1 Pound bij HSBC)

 

[SpeedyEddy]

For $TSLA, we get another big discount before other investors see: mmm $TSLA is as valuable (alas as volatile too) as gold... let's buy that..