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Wiki Selling TSLA Options - Be the House

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Just bought back 05/05 180 CC for 0.62 (sold for 1.55 last Friday) or 60% gain.
Grabbing what I can and 60% in 2 days for a contract that expires only next week is a no brainer.
Opens up the shares again for new opportunities.
Probably smart, although I have to mention the last two times I did that the cc expired :)
 
Probably smart, although I have to mention the last two times I did that the cc expired :)
Chances are big we don’t reach 180 at 5/05 close, but it’s still a long way and 60% in such a short time span is too much to ignore.

In Q1 I kept a 150CC before earnings and we all know how that turned out.
Then again, keep on rolling it would’ve made it almost closable by now 🧐
 
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Chances are big we don’t reach 180 at 5/05 close, but it’s still a long way and 60% in such a short time span is too much to ignore.

In Q1 I kept a 150CC before earnings and we all know how that turned out.
Then again, keep on rolling it would’ve made it almost closable by now 🧐
One datapoint — I got caught out in Feb with a $140cc and had to go out to mid-July to get it to $200 accepting a small debit. That is now at 20% of its sto cost, but still 3x the accumulated net premium. So I dither whether to roll down and in, or wait for it to hit $1.62 and get out whole……maybe I should do both for half the position.
 
I think TSLA is actually holding up quite well. I had expected a push down to 150-155 by now (and was waiting for it to sell puts), but there's still a lot of intraday buying pressure despite the negative macros and what we perceive as negative sentiment around the stock.

It's the third day we start lower but then start making higher tops and bottoms.
I'm wondering if the markets looked at $GM's margins and realised that $TSLA's being 3x $GM's are actually rather good...
 
One datapoint — I got caught out in Feb with a $140cc and had to go out to mid-July to get it to $200 accepting a small debit. That is now at 20% of its sto cost, but still 3x the accumulated net premium. So I dither whether to roll down and in, or wait for it to hit $1.62 and get out whole……maybe I should do both for half the position.
Yes, I got caught with -c135's in January, but that was a short-squeeze reversing a fake drop, this current pull-back has some logic behind it and I doubt it will rebound in the same manner
 
Those premiums are so juicy you could come out ahead even if you have to roll for zero debit/credit for 4-6 weeks, and that seems unlikely.
Well, you never know, of course, but I have 2000 trading shares that I can let assign at this strike, which makes rolling easier, plus then I'd have some extra cash to straddle puts if it came to it

I have to admit that I was also considering just to let the whole lot go to cash as well and sell puts... wasn't my long term plan, I wanted to hold those core shares back to the purchase price of $300, but that's a long way off IMO. This isn't 2020 with zero rates and the FED money-printer running 354/24/7

Might wheel the lot too, that might be fun...
 
Well, you never know, of course, but I have 2000 trading shares that I can let assign at this strike, which makes rolling easier, plus then I'd have some extra cash to straddle puts if it came to it

I have to admit that I was also considering just to let the whole lot go to cash as well and sell puts... wasn't my long term plan, I wanted to hold those core shares back to the purchase price of $300, but that's a long way off IMO. This isn't 2020 with zero rates and the FED money-printer running 354/24/7

Might wheel the lot too, that might be fun...
You are a swashbuckler, sir, and possibly also a pirate? Aaargh…..
 
This is crazy. Futures are up 1% this morning, and TSLA is flirting with Red. It certainly feels like (naked) short selling is really trying to bring TSLA down.
This is the typical pattern we see on the day following TSLA significantly outperforming it's macro and the NASDAQ. It's like the pirates go extra hard after an outperformance to punish Tesla. I've seen this over and over recently with the exception being periods when TSLA is on significant run.
 
This is crazy. Futures are up 1% this morning, and TSLA is flirting with Red. It certainly feels like (naked) short selling is really trying to bring TSLA down.
Not saying we will spike, but OTOH I think you assume way too much just from pre-market SP pricing.

Remember the days/weeks before the Q1 2023 ER: pre-market threw us off a lot. It proved not to be a reliable indicator for where the trading day will go.

IMO the best measurement of day-sentiment is the first 30 minutes of trading. We have the first 5-10 minute spike or drop, and then it either gets undone within the next 20 minutes, or it stays high/low. Only in the latter case we have a day of "keeping to climb/drop".

Not advice.