Wiki Selling TSLA Options - Be the House

[dl003]

Did I miss some negative news or something, this price action is quite perplexing...

It's simple when you consider how the massive call buying pre-ER was pushing up the SP. Now that it's over and there's not much of a reason for further run-up, those calls will need to be closed, and with them a lower SP. The unrelenting IV spikes told us calls were bought irresponsibly. However, that doesn't invalidate the stellar numbers we got yesterday. At some point we're going to find support and get back to 291.

 

[elasalle]

buying calls is tempting, but got myself 100 shares with some of proceeds from yesterday(roll Mar to Jun 350 CCs for $10 each) ... hope can use it for selling weekly CCs now .. maybe a gap fill?


Elon approves buy low sell high

*max pain is 260 ...

 

[SpeedyEddy]

the problem is timing. Put sellers can wait. Call buyers can't. Remember for all the dooms and glooms, we're still holding above the 276 breakout point.

I drew that line too, added some -cc (315 for next week ) and now we've passed that 276-line , sold some (a lot of my) shares with intent to day trade and buy back more of them later today (I dare not ever to be out of stock overnight again). Happy to have been right totally, but moreover again betting where my mouth was and getting rid of -P187.5 yesterday, not having to bite nails again.
SP already 3 dollars below my selling price today, if it keeps dropping I just have to guard earlier Gaps to fill or bottoms te reach. Next line in my graphs is at $264.19, if we do not manage to close above $276 today (which crossing I doubt very much)

 

[SpeedyEddy]

Inversely to MSFT or GOOG, Tesla is not rewarded for big investments in a long-term AI strategy. My take is because of the boy who cried FSD has degraded confidence in when it will actually be significantly monetizable.

Yeah, theoretical AI revenues are way better then using it in products in real life... of course (YOU DID NOT KNOW THAT?)... So be happy to be able to keep on buying cheap again..

 

[SpeedyEddy]

When we go sub $270, those puts are going to be SWEET!

ke-chinginging

 

[tivoboy]

Looks like I got it right this time - closed call side at 95% this morning - sold half the bought puts as well just now at $4.25 each
Letting the rest of them run till tomorrow.
Nice week!

You left 3.5% on the table, rookie move!

;-)

 

[SpeedyEddy]

..sold some (a lot of my) shares with intent to day trade and buy back more of them later today..

Back in business around SP @$271 (in portions, maybe I will go for a second round after lunch if not confidently into 276 and above. In fact my line was a bit higher @176.50) Gain: 1.5% in share count. Not bad for a minus day. For lots of people share price is important, for me upon to the real run, only share count matters.

 

[Jim Holder]

All told had a great day yesterday.

Near yesterday's highs:
BTC 8x +C150 12/19/2025 for +$19,800 win
Scalped shares on the swings for +$13,500 win
STO 30x -C300 7/21/23; STC near close for a +$3,840 win and opened the following three to reduce risk:
STO 10x -C315 7/21/23
STO 10x -C320 7/21/23
STO 10x -C330 7/21/23

Near today's lows:
STC 10x -C315 7/21/23 for +$3,900 win (98%)
STC 10x -C320 7/21/23 for +$3,180 win (98%)
STC 10x -C330 7/21/23 for +$2,300 win (98%)

Used gains to:
BTO 6x +C150 12/19/2025 around the original price I had them before the run to $299; rinse repeat...
BTC 2x -C450 12/19/25 (reducing naked short calls)
BOT 200 shares @$270 (reducing naked short calls)

End results/currently holding:
6,000 TSLA ($328 CB; 3,000 of them are from 4/2021 @$358 )
6x +C150 12/2025 (paid $159.75)
7x -P300 12/2025 (premium $93.21)
23x -C450 12/2025 (premium $51.34)
44x -C500 12/2025 (premium $45.15)

I plan to BTC the -P300 12/2025 on next run for just a few dollars, and buy back the short calls on dips and with any $$ from scalping/safe-ish option plays. If I don't get the chance I can just wait and let them bleed out --> $500+$45 premium and $450+$51 premium isn't a bad win for $328 CB even if I have to wait 883 more days....

Thank you @Mike C. @adiggs @Max Plaid @dl003, and all of you for sharing, teaching and posting here, it makes a world of difference!

 

[SpeedyEddy]

BTO 6x +C150 12/19/2025 for $155 (around the original price I had them before the run to $299; rinse repeat)

Yeah, I think, later on, I'll join in on such kind of a LEAP, turbo-ing in on the nice things to come, but I think there will even be a better chance (joining in on @dl003 's 240-ish-max bottom short term)

 

[Jim Holder]

Yeah, I think, later on, I'll join in on such kind of a LEAP, turbo-ing in on the nice things to come, but I think there will even be a better chance (joining in on @dl003 's 240-ish-max bottom short term)

100%

This is why I don't spend $$ all at once to save some for deeper dips. But the dealer Greeks data implies $270 can be decent support and we might not get lower:

+GEX (green) repels -- both as support and resistance.

Plus DP buying today:

Still bullish/hold/long signals even after all the contract closes today:

And for some wooky-jookie:

 

[Max Plaid]

With all the extrinsic washed out the -p290's, felt I needed to roll them today... so BTC 50x 7/21 -p290 @$17.9 -> STO 30x -p300 @$30.1

So yes, up $10 strike, but 20x less contracts and more importantly, now both fully cash-covered AND backstopped by Jan 24 +p250's

Will go heavier on the puts when the up-trend resumes, I guess it's the moment to be a bit aggressive on calls right now

 

[intelligator]

Small change made, at SP 270 rolled 2x 8/18 -C225 to 10/20 -C230 for $5 credit...

EDIT: Geez, now at 267 , I guess I left money on the table , lol

 

[Jim Holder]

Question:

If capital is available, where is it best spent:
BTO more +C150 calls
BTC more -P300
BTC more -C450
BTC more -C500?

I’m having a difficult time figuring this out.

Here’s the port:
6,000 shares ($328 CB)
6x +C150 12/2025 (paid $159.75)
7x -P300 12/2025 (premium $93.21)
23x -C450 12/2025 (premium $51.34)
44x -C500 12/2025 (premium $45.15)

Any non-advice/suggestions/thoughts are appreciated!

 

[SpeedyEddy]

Just finished round 2 with same amount, Out@ $272 in@ 266 (bit early, but expect a rebound on which I wil go for even a third round to 294.19 if that is not reached on this go. Gain: 2% shares, so up 3.5% of shares in total for the day already. Meanwhile seeing 264's incoming while writing this down.. so maybe I will stop this game .. Rebound is a fact and right at my mark (264.21 instead of 264.19, but I will give you these 2 cents).
So now waiting for 276.50 to break/bounce back from or 264.19 to break

 

[Oil4AsphaultOnly]

Question:

If capital is available, where is it best spent:
BTO more +C150 calls
BTC more -P300
BTC more -C450
BTC more -C500?

I’m having a difficult time figuring this out.

Here’s the port:
6,000 shares ($328 CB)
6x +C150 12/2025 (paid $159.75)
7x -P300 12/2025 (premium $93.21)
23x -C450 12/2025 (premium $51.34)
44x -C500 12/2025 (premium $45.15)

Any non-advice/suggestions/thoughts are appreciated!

Applying deduction:
I wouldn't BTC the -P300, since dl003's spike to 291 is still out there as a possibility. But someone else posted that the market's overbought, so things might go lower. When in doubt, keep shorting options (both sides). Leaving the BTO option remaining as a "gamble".

not-advice of course.

 

[Stretch2727]

Just amazing the collapse of the premiums the day after earnings. I sold some Jul 21 calls 275-295 strike at the money as the stock ran up as part of of diversification strategy. I was willing to part with the stock if it kept going. All over 95% gain on the calls. Bought a few back and the rest I will let expire or be assign but none are in the money.

Earnings time definitely the best time to be selling short term puts/calls.

 

[adiggs]

closed out both 320 calls and 270 puts expiring on Friday. The calls were for pennies - the puts were for a net realized gain of pennies.

Opened 260 puts for next week, and 250 puts for the week after. I have a greater expectation of these going ITM, than I do a rebound that drives their value down. These are aggressive positions for me and I'd like to have some puts assigned so I can be better balanced between put and call sales. I'm also not in a rush to get those shares.

I do have some shares for cc - in case we do see a rebound I'm not selling new cc today against those shares.


Still have 200 strike cc that are 2 weeks out. It'll be time to roll those again shortly as time value is already trivial. I'm not yet ready to cut bait on them and sell the shares as I think a quarter long slide is reasonably likely. These calls would benefit greatly from such a scenario and are thus my position for benefitting from this happening.

Today is providing a nice 1 day snapshot of why I'm glad I've got 1 of my accounts mostly in cash (or cash secured puts). The shares are down just shy of 9% as I write - that account is down 1.6% - a 2nd account with a lot more leverage (high DTE +calls) is down 10.5%. That first account is the first and primary source of living expenses; I'm hoping for less volatility there, while still being 100% cash and TSLA (incl. derivatives).

 

[Right_Said_Fred]

Just amazing the collapse of the premiums the day after earnings. I sold some Jul 21 calls 275-295 strike at the money as the stock ran up as part of of diversification strategy. I was willing to part with the stock if it kept going. All over 95% gain on the calls. Bought a few back and the rest I will let expire or be assign but none are in the money.

Earnings time definitely the best time to be selling short term puts/calls.

The huge premium collapse for July 21 calls, isn’t that more a ‘just one day until expiry’ collapse than a ‘day after earnings’ collapse?

 

[Jim Holder]

Applying deduction:
I wouldn't BTC the -P300, since dl003's spike to 291 is still out there as a possibility. But someone else posted that the market's overbought, so things might go lower. When in doubt, keep shorting options (both sides). Leaving the BTO option remaining as a "gamble".

not-advice of course.

Thanks.

My question was with any new extra capital available, which one is worthwhile more to add or close?

 

[SpeedyEddy]

For the long-termers I have this chart: we are nearing the point of a pie, so something has to break before okt 16 (and as my birthday is near that date, I would love to celebrate more than the passing of another year... So roughly 240-ish could break in a few days or weeks (in case of earlier announced bad thingys from the east or banks) Or 290-ish (but then with a vengeance..) in the same period which would really be my favorite. Rather clear strike-prices for options too. (You notice the exactness of the recent top on the line that connected the earlier tops? The upside down head-and-shoulders is completed (reaching 299.29 from the neckline of 200, repeating (only 9 cents off!!) the rise from 101,80 as it should.. spooky isn't it? But completing the formation brings us in uncharted territory, so up and down is both possible, technically. Since fundamentals don't seem to lead the way, macro will, I must almost assume, so a total irrational move is possible, but this time I won't be fooled as much at least if it is another leg down I will stay away from rather close -P (in fact I got 1 P150 jan '24 written only) but keep them calls rolling and hopping in and out of stock as a day-trader on days like this on which the move is evidently down.

[edit, I didn't notice the SP when this screenshot was made, even more spooky, would have liked 269,42 a bit more /edit]