Wiki Selling TSLA Options - Be the House

[MrMoo]

I forgot about CPI and Fed Meeting next week and opened some CC for next week already at 187.5. I was worried about those when I realized my mistake, but the action in pre-market this morning makes me think that even a market rally after CPI isn't going to bring TSLA back up to that level....

This stocks hard capped under 185 and I guarentee you it's hard capped under 200 regardless of what the CPI is. Big money doesn't want to touch this stock and all the traders are either going to take profit on a rip or are working on shorting it on weakness.

If you want to make money I THINK the only plays are (Not advice)
Sell a boatload of CC's, even naked CC's expiring before the next P & D for 200.
Sell your stock and sell ATM Puts every week to try to get assigned. Collect that premium.
Weeklies might work but if the stock starts going into free fall the piddly little premiums are not going to help the portfolio and eventually you'll have to start selling weeklies with strike prices too low for comfort.

 

[SpeedyEddy]

$144 incoming today? (+ huge bounce!)

 

[bingoz]

I have rolled my -c180 this week all the way down to -c160 this morning and quickly get +40%. Mixed feeling tbh. Will keep selling ITM call as long as it stay <160.

EDIT: More likely @Max Plaid will keep all his premiums for his sell calls.

 

[BornToFly]

What really rubs me the wrong way is that yesterday was the only day we didn't get a good dip like this, and it happened to be the only day I sold shares in pre-market. If I had done the plan this morning I would have made a killing. Instead, yesterday I ended up selling P165 for next week to try to get the shares back when it looked like we wouldn't get back below 160. Still will earn me over $2 per contract when I get the shares assigned, but my timing is just terrible.

 

[Right_Said_Fred]

STO 10 x p150 for next week at $2.05. If we go down I will probably sell more at a lower strike.

And STO another 5 x p146 for next week at $2.00. Clearly could have timed the first trade better, and probably also the second one, but I'm fine with it.

I put in another order for 5 x p144, also for $2.00. Let's see if that one gets hit too.

 

[dc_h]

I hope we're near capitulation, but I don't see anything to drive the stock back up. They keep lowering prices, but inventory keeps rising. Maybe fed rates will help, but not a lot of short term drivers for the stock. Nice to get out of those CC's on the way up from 100, but I'd rather have assets than weekly options money. In the meantime, I'll sell more calls in the 160's.

 

[Max Plaid]

Ouch, they going for the 146 gap fill today, or what?

 

[Right_Said_Fred]

Ouch, they going for the 146 gap fill today, or what?

Wasn't there a goal around 154 or so? I remember it being mentioned here several times.

 

[bingoz]

Ouch, they going for the 146 gap fill today, or what?

Maybe not today, but after AAPL ER. A small bounce to <160 is expected as TSLA is now oversold on daily timeframe.

 

[SpeedyEddy]

This stocks hard capped under 185 and I guarentee you it's hard capped under 200 regardless of what the CPI is. Big money doesn't want to touch this stock and all the traders are either going to take profit on a rip or are working on shorting it on weakness.

If you want to make money I THINK the only plays are (Not advice)
Sell a boatload of CC's, even naked CC's expiring before the next P & D for 200.
Sell your stock and sell ATM Puts every week to try to get assigned. Collect that premium.
Weeklies might work but if the stock starts going into free fall the piddly little premiums are not going to help the portfolio and eventually you'll have to start selling weeklies with strike prices too low for comfort.

But This Will Not Last until next P&D, I hope, Short move down to close 144 gap-up and then back into 180 in a few weeks, not leaving new gap-ups.

 

[SpeedyEddy]

Don't fall for the DCB on the minute-chart. On the Daily only the gap-Up 144 (and a bit) (mistakenly called 143 by me) is viable

 

[Cherry Wine]

But This Will Not Last until next P&D, I hope, Short move down to close 143 gap-up and then back into 180 in a few weeks, not leaving new gap-ups.

I see further downside risk. Inventory is building and you can bet that any price reduction will be met with a good sell off. Only upside “risk” I see is macro driven - Fed pause or ice cold CPI.

I should add that I rolled my 4/28 160s down to 5/5 150s yesterday before close.

 

[MrMoo]

But This Will Not Last until next P&D, I hope, Short move down to close 143 gap-up and then back into 180 in a few weeks, not leaving new gap-ups.

There is no money to get back into the 200s, 180 I’m not sure but Ide be surprised if we could break 185 which is where we traded the 2 days leading into earnings. Even long time holders and funds are trimming. The traders and option hedging mm’s can only take it so far.

I see further downside risk. Inventory is building and you can bet that any price reduction will be met with a good sell off. Only upside “risk” I see is macro driven - Fed pause or ice cold CPI.

Also agree with this sentiment. There are too many people who are willing to sell on a rip. I find it hard to believe we get to the 180s unless there is actual news from the company

 

[bingoz]

Maxpain is 155 and two high put walls are 150 and 160. So I STO -p150 this week for $1.2.

 

[BornToFly]

Maxpain is 155 and two high put walls are 150 and 160. So I STO -p150 this week for $1.2. View attachment 932043

Hard to use MAxPain when it changes significantly day to day. I think it was 165 yesterday?

 

[SpeedyEddy]

Put/call ratio for this week suddenly fell to .6 yesterday (did not notice until now) so this is not costly for the option professionals, I guess.
For coming weeks BIG put walls @ 150, so a SP scenario is to take out 144 quickly and then move back a bit above 150.
An other possibility is to now stay above 150 until May's big expiration and then hit 143. I hope for the first. Let's get it over with, but think the second one will roll out more likely.

 

[SpeedyEddy]

Wasn't there a goal around 154 or so? I remember it being mentioned here several times.

@dl003 called 157, being a fib level, but I personally look more at Gap-fills and see a, lot, the biggest (and now highest) one being from 144.
Technically 154 is not a bottom or resistance of any kind (157 was that at least)
In the latter case (staying above 150 for now I mean) DCB is not ready building to reach for last bottom, now becoming resistance which is @ $159

 

[dc_h]

$144 incoming today? (+ huge bounce!)

Meow, flop.

 

[Jim Holder]

I sold 180C's for 5/5. The daily downtrend resistance is at 183 so I figure even if we spike hard, first contact will be rejected for a decent retracement, at which point I can roll them out or close them. In fact, if we can close any day above 167 I will roll them up $5.

Good call on this trade!

Was able to ride the 5/5 -C180 from 0.80 to 0.25 on todays dip. I plan to STO again if we somehow make it back to 160 area.

Looks like today’s action to 153 gives you a cleaner down on the wave. Would love to see a sharp bounce from here.

 

[Chenkers]

Maxpain is 155 and two high put walls are 150 and 160. So I STO -p150 this week for $1.2. View attachment 932043

Max pain as shown in the image you posted was $165 and the Put/Call walls are actually at $160 and $165. However given the amount of options day trading currently happening around the $155 Put and $160 Call, you may end up being right tomorrow.