EVNow
Well-Known Member
Again - you show no evidence that you understand the difference between opinion and facts.
Did you search and see the references I provided ? If not, why not ?
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Did you search and see the references I provided ? If not, why not ?
EVNow
Well-Known Member
Yes - not sure how to deal with people who just post stuff with zero proof. If I don't respond, people who read the thread will think the wrong thing is actually correct.
jeewee3000
Active Member
Got to back @EVNow on this. I researched this also in the past and weeklies generally outperform longer dated options since the theta decay in the last days till expiration is a lot faster. Even if weeklies mean you sell at the IV of the week (sometimes low, sometimes high, you have no influence/choice) , it beats long dated selling on high IV spikes.
I'm all for discussion in both directions but when contesting something (that is backed by examples) you should provide counter evidence. If not, state you don't know. Otherwise it is possibly misleading to all others casually reading the back and forth.
Aaaaand it’s double the stress. Had the chance to close it at 60%+ but didn’t take it and now it’s ITM. Will close tomorrow if I get the chance, otherwise will roll.
Interesting 7/21 $200/$230 bull call spread spotted based on unusual TSLA options activity (Tesla’s Q2-23 earnings is around 7/19-7/26; P&D first week of July.)
Whether it’s “someone always knows” positioning for a beat or just a closing order remains to be seen based on the option chain over the next several days.
Anyone have thoughts on this play?
PS Here's a link to the trade I copied into Optionstrat:
Whether it’s “someone always knows” positioning for a beat or just a closing order remains to be seen based on the option chain over the next several days.
Anyone have thoughts on this play?
PS Here's a link to the trade I copied into Optionstrat:
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Ford adopting NACS! https://twitter.com/i/spaces/1eaJbrAPnBVJX?s=20
SH*T! I still have 12x -185c expiring tomorrow!
SH*T! I still have 12x -185c expiring tomorrow!
willow_hiller
Well-Known Member
The Tesla bull in me is very hyped. This all but cements NACS as the winner over CCS.
But the investor in me thinks this will likely be too technical for anyone with institutional buying power to understand or care about.
I saw the Ford news, and then checked the ticker, and so far no significant change AH. I wonder if this will turn into another Hertz moment from a couple years ago.... I hope not as I already rolled most of my CC for tomorrow to next week for 212.5 strikes.
EVNow
Well-Known Member
As a side note the IV spikes happen because of uncertainty- which means the SP can move quite a bit (think of the options that expire right after ER). So, if we sell those options a month in advance because IV is high - and SP moves counter to our bet, reduction in IV after the event is not going to save us. High IV on longer term option compared to weeklies is usually because of events in the intervening period that adds uncertainty and risk. There is no free lunch.
EVNow
Well-Known Member
I’m bracing for a negative reaction. Depends on analysts notes that will probably come out tonight / tomorrow. On the face of it, the positives for Ford are clear - but not for Tesla.
There should be payment to Tesla, and ongoing revenue from the deal....
Short trading week next week. I will definitely watch the market tomorrow and may close next weeks CC and open again at a higher SP if the stock seems to be responding to the Ford deal. Based on Twitter, Ford customers may either end up paying $13/month to be members, or higher rates at Superchargers.
EVNow
Well-Known Member
Just for fun, I asked ChatGPT 4.0 for a recommendation on how to manage a -185C expiring 5/26. Here's the response:
Given that Tesla's stock price closed at $184.47, very close to your covered call strike price of $185, it's a tricky situation as minor price fluctuations tomorrow could cause the call option to be in or out of the money by the end of the day.
Here are a few strategies to consider:
- Wait and see: Given that the price is close to the strike price, you might choose to wait until closer to the end of the trading day to see how the stock price moves. If the price remains below $185, your call option will expire worthless and you will keep the premium and the shares.
- Close the position early: If you are worried about the potential risk of the stock price increasing beyond the strike price, and you want to keep your shares, you could consider closing your position by buying the call option back. The cost of doing so will depend on the option's current price.
- Rolling the option: If the stock price is hovering around the strike price and you're worried about assignment but want to continue the covered call strategy, you could consider rolling the option. This would involve buying back the current option and selling another one with a higher strike price or later expiration date.
Remember, the best course of action depends on your individual financial circumstances and risk tolerance. It's also important to keep an eye on the market and any news about Tesla that could affect its stock price. Lastly, please note that trading on expiration day can be more volatile and unpredictable, so proceed with caution.
I think it's trying to tell me to put on my big boy pants and figure it out for myself 
SebastienBonny
Member
Glad you asked ChatGPT and not this forum or someone would've put his time in saying the sameJust for fun, I asked ChatGPT 4.0 for a recommendation on how to manage a -185C expiring 5/26. Here's the response:
Given that Tesla's stock price closed at $184.47, very close to your covered call strike price of $185, it's a tricky situation as minor price fluctuations tomorrow could cause the call option to be in or out of the money by the end of the day.Here are a few strategies to consider:
- Wait and see: Given that the price is close to the strike price, you might choose to wait until closer to the end of the trading day to see how the stock price moves. If the price remains below $185, your call option will expire worthless and you will keep the premium and the shares.
- Close the position early: If you are worried about the potential risk of the stock price increasing beyond the strike price, and you want to keep your shares, you could consider closing your position by buying the call option back. The cost of doing so will depend on the option's current price.
- Rolling the option: If the stock price is hovering around the strike price and you're worried about assignment but want to continue the covered call strategy, you could consider rolling the option. This would involve buying back the current option and selling another one with a higher strike price or later expiration date.
Remember, the best course of action depends on your individual financial circumstances and risk tolerance. It's also important to keep an eye on the market and any news about Tesla that could affect its stock price. Lastly, please note that trading on expiration day can be more volatile and unpredictable, so proceed with caution.I think it's trying to tell me to put on my big boy pants and figure it out for myself
After closing out -185C for this Friday for a small profit on Wednesday, I opened a few -200C for next week. I would not be too sad to have these shares called away.
Also I would like to add my few cents to the Delta Discussion, @Vova:
From the book "Trading Options Greeks" by Dan Passarelli. He explains that Delta can be defined in four ways:
So consider that there are different definitions which can all be correct.
Also I would like to add my few cents to the Delta Discussion, @Vova:
From the book "Trading Options Greeks" by Dan Passarelli. He explains that Delta can be defined in four ways:
So consider that there are different definitions which can all be correct.
Not the place for these discussions, I put my thoughts in the main thread: Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
This seems a bit bullish from Elon:
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