Wiki Selling TSLA Options - Be the House

[juanmedina]

$250 increase = 20% GM secured

I was able to sell a few $170 for Friday at $1.5. I am keeping some shares unlocked in case we go up tomorrow after the meeting. I am thinking about selling some shares around $180-175 and try to trade them since we might range bound at least until Q2.

 

[dl003]

I only have my -180C opened earlier in the week. 99% it won't be ITM. However, I'll need to see how the stock reacts to 167.

So what is 167? It's the 0.381 retracement of the 190-152.3 down leg. IF the big leg down from 208 is going to be a 5 wave impulse which can take the stock down to 146, then 166-167 should be a formidable resistance as most wave 4's terminate below this level. Statistics. Not voodoo.

"I'll need to see how the stock reacts to 167." It first tapped 165 on Friday before pulling back to 160, gathered some momentum to get to 165.6 today. That's not what a breakout should look like. The evidence is bearish divergences on the RSI and MACD (red arrows), telling us momentum was fizzling out. Momentum running out at a strong resistance = close my short puts.

While I don't know exactly where the stock going to be at 4pm on Friday, I knew that 166 167 will be tested at some point this week and so short puts were opened. At 165.6 and seeing double bearish divergences, I closed my short puts, letting my calls run. This is how I use TA to gauge direction, momentum and levels in order to profit. Don't need to know the weekly closing price. Never did. That's not the primary purpose of TA.

At 155-157, I will again see how the stock reacts & what momentum looks like. If it's unclear, I will not open new short calls as downside potential is $8-10 (to 146) but upside potential can be $25 (to 180). Risk : Reward analysis. Not voodoo.

 

[UltradoomY]

September 15th $400 SPY Puts - $10.63 each this morning. Only got a handful as this is a hedge.

Cheers!

On topic - my $160 P/C straddle is looking good so far today. After burning some theta over the weekend.

Closed my $160P's today for $1.50 each
Closed the $160C's as well for $3.25 each

Total for holding over the weekend through today - $4.50 each

Closed half of my S&P bought Puts this morning as well for $13.75 a 30% gain in a day was good for half of them IMO and will keep the rest open through the FOMC tomorrow.

Looking to have no TSLA specific short term positions open through end of week - unless a good up or down shows for next week expiry.

Good luck all

 

[CHGolferJim]

May I ask why you're not letting this one expire? Then you could sell again on the first bump next week.

It was down to $0.11 (eleven cents), expect to net more on 19May$180 (sto $1.20), and bumps are uncertain, so take the bird-in-the-hand.

 

[EVNow]

But yes, 146 still a possibility, seems that candle-charts abhor a vacuum...

I hope 146 is hit when Nasdaq is at a bottom. Otherwise we risk breaking 146 and going further down. Given expectations of a recession in the next couple of quarters, not sure when we will see Nasdaq downturn and when it will bottom out.

ps : If Nasdaq goes back to 10,200 ... can TSLA avoid going back to 100 ? TSLA should have really been in 300 to 200 range, instead of 200 to 100 range, going by how Nasdaq moved in the last year.

 

[MikeC]

A flat SP may be good for option sellers, but it sure makes it hard to close anything early.

Sitting on 20x 160c and 20x 165c. Also holding a handful of -p from 160-165. I should be happy with where the SP is right now but this is like watching paint dry. Was hoping to close some before the Fed tomorrow but it looks like I'll be sitting tight.

 

[thi7b]

I been watching TSLA stock everyday for a year now. I was lucky enough to pickup 250 shares at $110 then sold it when it reached $195. The 52 weeks low were around $101. I don't think it will go down that low again. I'm waiting for the stocks to go backdown to buy in more.

 

[jim0266]

Appeared like magic the last few minutes today to contain the price level!

 

[ReddyLeaf]

A flat SP may be good for option sellers, but it sure makes it hard to close anything early.

Sitting on 20x 160c and 20x 165c. Also holding a handful of -p from 160-165. I should be happy with where the SP is right now but this is like watching paint dry. Was hoping to close some before the Fed tomorrow but it looks like I'll be sitting tight.

Same here. Similar positions. When I checked my account earlier during the trading day, noticed that premiums for near ATM puts and calls are both up, so IV must be increasing in anticipation of tomorrow’s FOMC meeting. Barely any theta decay on my 5/5 positions and essentially no decay on my 5/12 positions. Just another reminder that it’s not necessarily beneficial to sell options before Wednesday or Thursday for 1 or 2 DTE.

 

[BornToFly]

Sold 182.5CC for next week on all my shares.

 

[jeewee3000]

Sold 182.5CC for next week on all my shares.

Excellent, now I know where the FOMC meeting today will take the market (up). /s

 

[Right_Said_Fred]

Rolled 5 x -p144 and 5 x -p146 for this Friday to 10 x -p155 for next Friday, receiving $2.00 in net premium.

It’s a hedge against a further rise. If we go down I still have 10 x -p150 for this Friday which I can also roll.

 

[Jim Holder]

At 155-157, I will again see how the stock reacts & what momentum looks like. If it's unclear, I will not open new short calls as downside potential is $8-10 (to 146) but upside potential can be $25 (to 180). Risk : Reward analysis. Not voodoo.

Seems lots of bullish buying action at the bid making sub-160 less likely(?). I’m currently flat and finding it hard to muster a responsible play at these crossroads.

Are you currently in anything new given the price action or waiting?

 

[intelligator]

Open positions for this week:

-c165/+c170
-c167.5/+c172.5

Will be watching pre , during , post speaker's rationale, let dust settle before a knee jerk move.

 

[Max Plaid]

Would have liked to trade the FOMC news, but being on vacation it’s not possible - off to the beach with the dogs now…

As extrinsic was getting low, I rolled 90x -c150 to next week for net +$1, I left 28x to exercise (net price $163), so then I have some cash for selling puts - will use that to straddle the calls up. And still a downside hedge in case the FED upset everyone

 

[intelligator]

Feels like we are capping at 165 , no?

 

[SpeedyEddy]

Daytraded some of the the shares (2 times out/in profitably) around FOMC to gain some money to close SPY -C 394 without a loss (only 1400 bucks needed) and I was lucky enough to make this happen.
Because of a trip I wanted to get rid of most of my positions, except for the TSLA shares and MSFT -C 320 june. No worries, only shares to watch from a distance.

 

[EVNow]

Feels like we are capping at 165 , no?

Well, apparently a lot of day traders are selling off at 165 thinking thats the day's high .... Wicked Stocks thinks ~166 is an important resistence point.

 

[SpeedyEddy]

Well, apparently a lot of day traders are selling off at 165 thinking thats the day's high .... Wicked Stocks thinks ~166 is an important resistence point.

At least I did twice, but bought all of it (plus a few free ones) back at 163 and 164. I am really bullish on Powells adress. We could call 152 the bottom after all?

 

[BornToFly]

Just like clock work. Powell talks, market crashes.