Wiki Selling TSLA Options - Be the House

[Jim Holder]

Maybe.

I dont buy calls. What I do is sell naked calls and close them if opened in outsized quantities. I guess thats still considered buying, but BTC.

Level wise its getting yummy but the timing is still not there for buying calls, I reckon. Maybe end of this month if we see 240 AGAIN. or lower. Ive since moved my downside target up to 240. However, 225 can be reached if things get REALLY bad.

Thanks.

This was the roadmap from a few weeks ago, I guess that means we can update the $217-$230 to $240:

• Net long delta to $296, then close positions and observe. (DONE)

• If we are rejected at $296, wait for a retest of $240.

• If $240 holds, then net long delta for another test of the resistance trend line later this year. Know that the subsequent correction will reach the low from the rebound ($240 or whatever it'll be).

• If $240 doesn't hold, be defensive until we've bottomed out.

• If/when we break $296, then net long delta to $340.

• At $340, lighten up position and prepare for the pullback to end at $270, then at $270 net long delta to $380.

• At $380, close all long positions.

 

[Jim Holder]

Dont get caught holding short ATM calls at that moment is all Im saying.

100%

BTO today just 1x +C230 Jan '24 for $42.40 in case we find a bottom around here.

TSLA Jan 19th '24 230 Long Call (1) | OptionStrat

View my options strategy on OptionStrat

optionstrat.com

Otherwise I have 6x +C150 Dec '25 from several weeks ago, just sitting on them for now.

 

[Jim Holder]

While I love these graphs, I still haven’t figured out exactly what the heatmap is supposed to indicate to me? Does one want to see it more GREEN, green tilting downwards not upwards?..more red would SEEM to be “bad’ but again. I focus more on volatility, current price relative to historical price (of the options price relative to the strike and theta)..

The red reminds us about the theta burn as time marches on. This helps visualize so we can add sufficient time when putting on the trade before pulling the trigger. Saved me many times from throwing away money with near DTE which "felt" right but weren't in real life. Of course if IV spikes it changes but absent that it's a very helpful reality check.

 

[dl003]

I sold puts. Waiting for the 280-291 gap fill.

 

[Jim Holder]

I sold puts. Waiting for the 280-291 gap fill.

What strike/DTE?

 

[dl003]

What strike/DTE?

went for 235 8/18.

 

[SpeedyEddy]

I sold puts. Waiting for the 280-291 gap fill.

Me too, but 235 aug 18,
+ got rid of -C240 aug 11 (a bit late but)
I realised, like cutting off the rally just before the round 300, the big boys did not wait for 240 exactly, so I closed out on the way up for 10 dollars.
Also -P dec 25 $230 for an unbelievable 50.65 dollars, which I will guard better than the ones in December '22.
I am on the same track for an intermediate lower high, on which I will reverse both positions again. I will wait out with only very small option-positions, because it could get very volatile.
Still shorting RIVN, C3.AI, Again short NVDA,
Long Tesla, PLTR, Sofi, Tomra (Norvegian recycling, that got hit heavily while gross margin above 40% (Ok a few of their products got hacked, but there is an easy fix and the drop started far before that instance)

 

[ReddyLeaf]

Anyone looking at buying some +C LEAPS down here?

Yes (see below). Crazy dayz are here again. Checked the SP in the middle of night, looked good, went back to sleep not worried, then woke up late to “well crap now what do I do?” Furthermore, I got a “patterned day trader” warning, and not really sure what to do with it. Said to deposit cash to bring up balance to $25k. Assume it means that I must keep that much free cash, since there’s way more than that in stock and spreads. Oh well, decided to close the 8/11 CCs on the MMD, and sell 100 shares to clear the margin call. Also, to fix this week’s concerns, closed out the BCS side of the ICs for pennies and then rolled out the BPS side to 8/18 +p220s/-p230s for small debit. Decided NOT to pair with another BCS because the SP was so depressing. Finally, thought about how many times I’ve missed playing these MMDs, so decided to buy 10x Dec2025 +c400s/-c410s just for grins & giggles, then went on with my day.

Checked the SP after lunch and, yowza, crazy bounce back. Decided to resell 8/11 -c265s near the close just in case this is a dead cat bounce. Wanted to resell the call spread, maybe-c270s/+c280s, but decided to wait until Wednesday just in case the rally has legs. In summary, I’m still hedged long/short/up/down, to the point that I no longer know which way is which: 8/18 220/230 BPS, 8/11 -c265s, Dec2025 +c400s/-c410s, plus lots of -CCs from 220-300 Oct2023 to June2025. Finally, I have $30k free cash now in each account, just sitting there, doing nothing just in case that margin call was real (at least it’s earning 4.5% interest). Time for a couple of days rest. GLTA.

 

[mongo]

Said to deposit cash to bring up balance to $25k. Assume it means that I must keep that much free cash, since there’s way more than that in stock and spreads.

Should be $25k total account balance (stock and cash) at start of day.
What’s the Pattern Day Trading Rule? And How to Avoid Breaking It - Ticker Tape

 

[ReddyLeaf]

Should be $25k total account balance (stock and cash) at start of day.
What’s the Pattern Day Trading Rule? And How to Avoid Breaking It - Ticker Tape

thanks. I was pretty sure that I violated the rule, because it’s been a pretty crazy two weeks, but I was surprised by the brokerage warning to deposit more cash. My account totals are clearly over the $25k limit, not even close, but I have been under $5k in free cash many times. I often “top up” my trades on Wednesday or Thursday, selling a few extra ICs 1-2 DTE with any extra cash.

 

[Jim Holder]

I’m still hedged long/short/up/down, to the point that I no longer know which way is which.

Lol — fun times

 

[Jim Holder]

Hmmm…bounce may have some life if this implies—and is interpreted as—less drama than many were implying:

 

[CHGolferJim]

Rolled the 25Aug$300 to 11Aug$275 for a small credit. Hope to take these off the board next week, and have the 15Sep$300 assign. Gradually getting out from under all these DITM CC, maybe can get back to earning income in a month or two.

Closed the 11Aug$275 at open with a GTC of $0.14 for a 90% profit thanks to the Zach dip. Now holding 15Sep$300, 20Oct$235 and 17Nov$210. Next move is to roll the DITM up and in using credits from new sales to cover debits.

 

[intelligator]

Are we back to MMD before 10? I missed it again today, was wanting to sell -p235 for 8/11 , went from 1.40 @ 245 to .75 while at 249 ... will try again tomorrow.

 

[Max Plaid]

As I'm a bit out-and-about, I can't really trade the volatility, so I'm just letting this week play out a bit further (-p260's & -c260's). $TSLA looking fairly strong today in the face of poor macros

Edit: was looking fairly strong, now being walked down

 

[Cherry Wine]

Currently sitting on 10x 8/11 -c270s (rolled down from -c280s on yesterday's news). Starting to consider a small -p position if this dip has more legs.

 

[BornToFly]

Currently sitting on 10x 8/11 -c270s (rolled down from -c280s on yesterday's news). Starting to consider a small -p position if this dip has more legs.

CPI Thursday morning. Market might be green tomorrow to front run if those in the know believe the numbers will be good. Obviously Red if numbers will be bad.

 

[tivoboy]

CPI Thursday morning. Market might be green tomorrow to front run if those in the know believe the numbers will be good. Obviously Red if numbers will be bad.

My concern is that ENERGY and TRANSPORT may have muted or negated many of the other items that have come down.. and housing is still sticky to flat, with flow through of rents not going down - yet.

Overall, I DO NOT think we’ll have a September hike at this point and from what will flow into AUG/SEPT, but we’ll probably have some negative nelly news from Jackson Hole late Aug.. I’m positioned still for a lower overall market between now and October, having bought back many calls in other sectors at ~10-15% and sold some other tech positions last week. Moving my Tesla re-entry targets now below $230., but PUTS don’t have enough premium for me yet.

 

[SpeedyEddy]

Currently sitting on 10x 8/11 -c270s (rolled down from -c280s on yesterday's news). Starting to consider a small -p position if this dip has more legs.

?If we go low thou shalt sell calls, I thought.. (unless share the bottom is very near, which with Tesla you never can tell)
I just closed my -P for next week because of hanging around 250, which smells bad if you expect a run to 289-ish. But like @BornToFly stated, CPI can still come in nicely on thursday.

 

[BornToFly]

My concern is that ENERGY and TRANSPORT may have muted or negated many of the other items that have come down.. and housing is still sticky to flat, with flow through of rents not going down.

Overall, I DO NOT think we’ll have a September hike at this point and from what will flow into AUG/SEPT, but we’ll probably have some negative nelly news from Jackson Hole late Aug.. I’m positioned still for a lower overall market between now and October, having bought back many calls in other sectors at ~10-15% and sold some other tech positions last week. Moving my Tesla re-entry targets now below $230., but PUTS don’t have enough premium for me yet.

I agree. I'm hoping for a Green Day tomorrow to sell weekly calls. Sell Puts Thursday or Friday.