Wiki Selling TSLA Options - Be the House

[Jim Holder]

Thanks for the 5/19 -P165 trade you posted yesterday, I’m holding 35x @ $3.48. Looks like a sure winner now if TSLA stays over $170 next week while it finds it’s new spot

I’m holding currently:
-P165 5/19 @ $3.48
-C190 5/19 @ $0.50

I plan to BTC the -P165 at highs ($175-180) early-mid next week for pennies, just to be safe.

Re the -C190 5/19 you mentioned you rolled your weeklies, did that also include the 5/19 -C190. Are they in peril by next Friday?

Fun times!!

BTC 35x -P190 5/19 for ~$500 loss. That’s a good deal to me. Risk off the table.

Holding 35x -P165 5/19, gains rising nicely. I plan to close today at 180 if it hits or Monday.

BTO +C175 6/16 @ $10.50

 

[dl003]

I am not sure what to do today. Any guesses on how high will this run by the end of next week? If we break $177 what is the next stop? We are getting a barrage of good news other than the China OTA update. The Twitter news seem like a good excuse for call buyer to really run this up but who knows .

OT: I drove the Lucid Air yesterday and I was not impressed. The screen is really small compare to the S and no AP in city streets sucks.

My suggestion?

Figure out how much margin your account can sustain.
Sell puts heavily
Get your short calls out of the way until the smoke has cleared.
RSI and MACD have made a new high on the daily timeframe. Top has not been made yet. Tracking this, I can gauge the momentum and tell when it is running on fume. This train has just begun.

 

[Jim Holder]

My suggestion?

Figure out how much margin your account can sustain.
Sell puts heavily
Get your short calls out of the way until the smoke has cleared.
RSI and MACD have made a new high on the daily timeframe. Top has not been made yet. Tracking this, I can gauge the momentum and tell when it is running on fume. This train has just begun.
View attachment 936993

What puts are you selling?

 

[dl003]

What puts are you selling?

-170P 5/19

 

[Jim Holder]

Lousy timing for my STO 40x P-167.50 5/19 @ $1.46 at 9:55am EST (now $2.75; down $5k). Market dumped five minutes later at the 10am inflation news and looking weak. And I didn't set a stop...

Not doubling down even though that’s maybe what pros will do. Better safe than sorry.

Hopeful we hold $173 at least.

Edit: Rumor that Elon is stepping down from Tesla too didn't help. There goes $173...

 

[vikings123]

lol what a wild Friday. Apparently there is a rumor that Elon is stepping down as CEO of Tesla. Amazing that the rumor comes out on a day we were doing well. Elon, Where are you?

 

[Jim Holder]

lol what a wild Friday. Apparently there is a rumor that Elon is stepping down as CEO of Tesla. Amazing that the rumor comes out on a day we were doing well. Elon, Where are you?

TSLAQ at its finest.
The selling looks emotional and news driven. I'm hoping for a recovery. A tweet from Elon would likely rocket TSLA back to 180.
Gary Black tweeted that it's nonsense and WSJ is spreading FUD.
Wild ride!

 

[Right_Said_Fred]

It looks like it's simply following the macro trajectory, amplified by some profit taking (and perhaps MMs aiming for a certain closing price).

 

[dl003]

My suggestion?

Figure out how much margin your account can sustain.
Sell puts heavily
Get your short calls out of the way until the smoke has cleared.
RSI and MACD have made a new high on the daily timeframe. Top has not been made yet. Tracking this, I can gauge the momentum and tell when it is running on fume. This train has just begun.
View attachment 936993

That criminal rumor took RSI and MACD off their high. Normally this is bearish. However, TSLA is still resting on the 1h 200 EMA @ 172 and more importantly call flow doesn't confirm the bearishness. I'd wait till Monday.

 

[Jim Holder]

That criminal rumor took RSI and MACD off their high. Normally this is bearish. However, TSLA is still resting on the 1h 200 EMA @ 172 and more importantly call flow doesn't confirm the bearishness. I'd wait till Monday.

What’s your plan for your -P170 5/19’s, leaving them on for now and waiting for Monday? Are they down a lot?

 

[dl003]

What’s your plan for your -P170 5/19’s, leaving them on for now and waiting for Monday? Are they down a lot?

I'll close them at 180.

 

[Jim Holder]

I'll close them at 180.

Nice to hear you’re confident we’re going back up within 5 days.

Are you adding/averaging up here at lows? Hit $3.00 Edit: $3.75

 

[EVNow]

IMO this is a temporary bump - because traders think someone else will now start buying TSLA. Of course if EM sells Twitter that might be a real catalyst.

If market goes up - SP may still go up ... but announcing a CEO for Twitter (something he conducted a poll and said he would do 6 months back) isn't going to fool anyone the big guys.

I may still buy back 5/19 185 calls that got executed yesterday (rolled from this week) and wait for Monday to sell again (prefer 190).

 

[Jim Holder]

Lousy timing for my STO 40x P-167.50 5/19 @ $1.46 at 9:55am EST (now $2.75; down $5k). Market dumped five minutes later at the 10am inflation news and looking weak. And I didn't set a stop...

Not doubling down even though that’s maybe what pros will do. Better safe than sorry.

Hopeful we hold $173 at least.

Edit: Rumor that Elon is stepping down from Tesla too didn't help. There goes $173...

So I’m trapped in the trade (STO 40x P-167.50 5/19 @ $1.46 at 9:55am, now $3.75'ish), didn’t cut when TSLA dropped below $174, was expecting a bounce instead. My fault

Not going to BTC at -$9k loss. Going to practice patience and being less emotional this time around. Theta burn should help some over the weekend.

So long as TSLA hovers $170 by Tuesday/Wednesday I should be okay.

Correct me if I'm wrong, if TSLA breaks $165/164 then get out at any cost since the trade is invalidated and TSLA is likely to test new lows and I'll be upside down even if my margin can handle the exercise, correct?

 

[EVNow]

Not going to BTC at -$9k loss.

If you are afraid of losses don't open any option that is not 15% or more OTM. Even then, you can have losses.

As I said in an earlier post - I don't even look at the option price until Thursday of the expiring week - just keep track of SP. Before you sell - have a plan on what you will do if/when the option is ATM/ITM.

 

[Jim Holder]

Bad rhythm today!

$167 incoming.

Should’ve sold Calls at $177 instead of Puts

 

[Rammstein]

I’m doing research on what you need to move to Portugal. Looks like I won’t be able to make the golden visa deadline but there will is the D7 visa that requires passive income. Right now I’m think half in Jepi and half in Jepq. However, I just found out about TSLY. It sell covered calls on Tesla. What do you guys think about it?

 

[vikings123]

So I’m trapped in the trade (STO 40x P-167.50 5/19 @ $1.46 at 9:55am, now $3.75'ish), didn’t cut when TSLA dropped below $174, was expecting a bounce instead. My fault

Not going to BTC at -$9k loss. Going to practice patience and being less emotional this time around. Theta burn should help some over the weekend.

So long as TSLA hovers $170 by Tuesday/Wednesday I should be okay.

Correct me if I'm wrong, if TSLA breaks $165/164 then get out at any cost since the trade is invalidated and TSLA is likely to test new lows and I'll be upside down even if my margin can handle the exercise, correct?

Obviously do what you have to do. We know that 166 level has been tested multiple times so until that breaks I plan to hold the 10X 05/19 170 puts I sold with TSLA at 173.

Also if you think the red position will impact your weekend happiness close them now and take the loss. There will always be opportunities in this market. Or maybe roll down to 165 puts or something like that?

 

[Jim Holder]

Obviously do what you have to do. We know that 166 level has been tested multiple times so until that breaks I plan to hold the 10X 05/19 170 puts I sold with TSLA at 173.

Also if you think the red position will impact your weekend happiness close them now and take the loss. There will always be opportunities in this market. Or maybe roll down to 165 puts or something like that?

Thanks. I will hold for now. See what Monday brings.

 

[EVNow]

We know that 166 level has been tested multiple times so until that breaks I plan to hold the 10X 05/19 170 puts I sold with TSLA at 173.

There are a couple of support levels close by (according to Wicked Stocks).