Wiki Selling TSLA Options - Be the House

[Jim Holder]

Looks like we can aim for 180-183 from here. Retested inside low 166-165 more than enough this week ;-)

Holding:

-P160 5/12 (0.26; recycled several times)
-P165 5/19 (3.50)

For the 5/12 I plan to hold out to Friday and BTC for $0.02 or so.

For the 5/19 I’m hoping for another try at 175-180 this or next week and BTC then instead of waiting it out. I also see lots of chatter that 5/19 is deep red for markets (maybe from old puts/calls?). But they may have been closed out and it’s not a worry anymore.

 

[MikeC]

Closed 10x -c170 at pretty much break even. Now holding 4x -c170 and 2x -p170 for this week.

Still have 10x -c165 for next week that I'm looking to double the contracts and roll up to a higher strike if we break 170 again this week. Also holding 10x -c172.50 for next week that was a roll from last week.

Edit: accidentally wrote p instead of c

 

[bingoz]

TSLA -0.34% while SPY +0.47% and QQQ +1.09%. Does it raise any concerns to you guys?

This is TSLA 1h timeframe. IMO, if TSLA can stay above the 165-166 support, the chance to fully fill the gap at 180 is still there, otherwise, the next stop could be 160, then 152.

 

[intelligator]

OI change +/- (total)

c175 ~ +13.5k (43399)
c172.5 ~ +6.3k (24816)
p165 ~ +5.7k (29303)

170 and 167.5 OI change is near symmetrical , relative. C170 (29727) has the highest OI, P167.5 (13809) less than half of p165 ... will 165-170 be todays range?

 

[BornToFly]

Try this:
Buy 167,5/180/192.5 call butterfly
Sell 167.5P
Net credit $1.06
It's like buying share at 166.5, and you'll enjoy 100% of the upside next week up to $180.

This kept me up. I was trying to find the downside, and realized that it is like buying shares and holding them to 180. After that you start losing ground, and by 192.5, it is like you sold the shares at 168.5 and you miss on all the gains. Am I correct? I do like it though and will need to play with this.

 

[dl003]

This kept me up. I was trying to find the downside, and realized that it is like buying shares and holding them to 180. After that you start losing ground, and by 192.5, it is like you sold the shares at 168.5 and you miss on all the gains. Am I correct? I do like it though and will need to play with this.

Almost, except it is like you sold the shares at (the actual price you sold yours at + $1) if the stock runs past 192.5. I don't expect that to happen, though. You can even narrow it down to 167.5/175/182.5 + sell a 160P instead.

 

[Max Plaid]

Today's economic indicators came in +/- as expected, were some deviations to forecast, but mostly in line with consensus

FED's Waller - one of the biggest hawks - will be speaking 45 minutes after markets open, could give some headwinds

With the exception of GOOGL, everything looking a bit "meh" today...

Still holding my 90x -c150's, I get the impression that calls don't get early exercised as much as puts - I'm waiting to see if we pick a direction above or below 167

 

[dc_h]

In my case it's when I get an absolute conviction about something and go "all in", then it invariably does the opposite

So that's the position I find myself in now, about to sell all my shares for net $164

However, I see a bright future selling puts in the run-up, I think OK to be aggressive, but just use 50% of my available cash, so that if it does go against me I have the possibility to double-up for rolling down...

If I end up buying back in at that same price, I'm fine with that too

A lot of thought on optimizing rolling up has been shared on this thread. When we bounced from 100, I got caught flat footed. I didn't have 100 covered calls, but about 30. I would roll all the shares and use the credit to roll the largest percentage up $5 per contract. When we went over 200 it was not looking good, but I cleared out my last CC's when we fell back down around 180. I'm not comfortable combining puts, but you've done well with that. Where I'm going is that you should be able to continue rolling up and get some chunk of your shares OTM, where you will improve your credit the following week. If you can time pull backs and we stay between 160-190, you should be able to get OTM in 6-8 weeks. Whatever you do, I'm curious with your strategy. I expect you'll figure this out to your profit.

 

[scubastevo80]

OI change +/- (total)

c175 ~ +13.5k (43399)
c172.5 ~ +6.3k (24816)
p165 ~ +5.7k (29303)

170 and 167.5 OI change is near symmetrical , relative. C170 (29727) has the highest OI, P167.5 (13809) less than half of p165 ... will 165-170 be todays range?


View attachment 936683

As long as tomorrow's range is anything to $167.5 I'll be happy! I've been quiet lately, but putting on covered calls every week and rolling. I've been called out once (and then subsequently wrote puts which were exercised against me), but haven't been exposed to a big run higher. Unlike last year, I'm actually likely the lower IV even though premiums are lower.

 

[MikeC]

Closed remaining -c170 and -p170 and starting to open -p165 and -c175 for next week. Also rolled 10x 5/19 -c165 to 20x 5/19 -c170 for a small credit and still holding 10x 5/19 -p172.50.

I'm okay with breaking even on weekly short calls as long as we move up ~$5 a week - I just want to be compensated if we're flat or down since I'm holding too many OTM LEAPS that are losing theta.

Still feels to me like we're drifting with the market on low volume until we start seeing things to suggest margins are improving, like price increases or record sales. There may be some buying ahead of the shareholder meeting but I don't think we move up significantly. I still remember Elon dumping shares last year the day after the meeting.

 

[EVNow]

5/19 IV has tanked ... in the low 40s. So 185 calls are 50 cents, even though less than 10% OTM. Considering last Friday's runup - rolling on Thursday is probably not the wise thing to do, anyway - though most likely SP will end up around 170 tomorrow.

Still have 180/185 calls for tomorrow. Will probably close/roll tomorrow.

 

[Oil4AsphaultOnly]

Degenerate gambler chiming in. Flip rolled 5/19 -172.5p backwards into 2x 5/12 -170c for a few cents credit. Banking on max pain for tomorrow. Even if TSLA ends up at 170, $1.7 for 1DTE should still be profitable. Will reopen the 5/19 -172.5p if TSLA drops to 167.5. This is in IRA, so no tax implications to worry about.

 

[vwman111]

New CEO for Twitter. Watch out on the CCs!

 

[juanmedina]

I am glad I closed my calls yes.

 

[Max Plaid]

New CEO for Twitter. Watch out on the CCs!

They were already on life-support, but now they've flat-lined...

 

[bingoz]

I am glad I closed my calls yes.

And glad that the news is released before market is closed. Time to fix the position immediately if needed.

 

[SebastienBonny]

Initial reaction like expected (small bump), but I really don’t know this will drive us a lot higher.
Always thought the distraction thing was way too exaggerated.

 

[Oil4AsphaultOnly]

I am glad I closed my calls yes.

DOH!! Not gonna fix it though, since the distraction argument seemed kind of played out.

 

[vikings123]

Initial reaction like expected (small bump), but I really don’t know this will drive us a lot higher.
Always thought the distraction thing was way too exaggerated.

It doesn’t have to make sense for TSLA to run. I’m thankful for stop loss orders or I’d be looking at some big losses because of this news.

Technically I think we can run and what better day to start the squeeze than options Friday.

 

[dl003]

good thing I was babysitting till the very end. Rolled my weeklies to 200C 6/16. Gonna wait and see. If it was me, I'd not try and stay in front of this thing. The distraction argument may or may not have substance, but traders-gamblers don't care. You're not trading Tesla the company. You're trading TSLA the stock.