Example: sell a covered call on a pop for $50, then buy back on a dip at $25, while selling a put at $50, then buying the put back on the pop at $25, yes, that's the way to do it
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Thanks!
Follow-up question: In your opinion, what has greater chances for December 2025 (2.25 years from now): TSLA below $300 or over $500 (to decide which side to lean into heavier, -C500 or -P300)? NFA of course.
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Pfff, I was out for a run at open and missed the 230 high to close my -p250, then I took a shower and missed 226, and now macro craps on us too 
Given these choices I honesty think TSLA below 300, 500 is a long long way to go from here. The previous ATH of 415 was right at the end of the money-printing cycle, a lot of hype and FOMO behind that. Even with perfect execution from here - which Tesla aren't exactly renowned for - I can't see the SP getting up there, 300 seems a strong psychological lid to me
But I could be completely wrong...
Do you mean in your opinion it's a better risk to stay in the -C500 and reduce -P300 for 12/2025?
I chose Jan 25 500 strikes for now (safe zone with $6.8 credits as dividends) ... in another 6 mths I will have an option to roll up to Jan 25 400 or even 350 calls should the need arise ..(SP stays flat, macro not good etc). On the upside ( FSD, FED stops rate hikes, war over ) I can still wait it out and roll to Jan 26 should the need arise ... All my shares are fully clothed till Jan 25
~ 400 shares, 20 Dec 25 250 calls with proceeds + After call yesterday, I tempered my Super Bull case PT from 600 to 500 ... and there is where I sold my calls.
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If I had the choice and was happy to write short calls that far in the future the I'd do both, but as a -300 straddle, that pays $150 per contract pair and has a LOT of extrinsic to wash out from here, that way you hedge your bets... profits >150 < 450, which is a very wide range
With shares in the 222 to 223 range, I've taken my initial action to take advantage of this move. I entered today much too close to 90% cash than I like - I've got a longer term target of more like 50/50 cash and shares (or leaps). Thinking in quarters - I've added shares around 223 to bring me back up to 25% shares (still 75% cash). Shares that I'll use to sell covered calls against in the days and weeks to come, but not today on such a large down day!
I considered selling 220 to 225 strike puts for tomorrow in the hope that I would get both the shares and the time value, but I've gotten cute like that before and earned the premium while missing out on the share sale / purchase. I learned that when what I really want is to buy or sell shares, then I'll just buy or sell shares and not be cute about it.
I've also sold 11/3 200 strike puts in a second chunk (25%) - these are primarily intended to be income, but since I'm planning to buy shares and/or leaps if we actually see that share price, then these could just be my next purchase of shares.
Closed some 350 strike March '24 calls that I sold just recently. In for nearly $11, out for $2.80 or so. Can't turn down $7.50 or so for a few weeks. I haven't done many of these 3-6 month options so far, but I'm liking what I've done so far; I'll be looking to do more trades like these.
As my focus is all about income, I think the problem I've had with trades like these is that the income is so lumpy. But lumpy income actually works quite well for me as I've been keeping the next 6-18 months of living expenses in a CD ladder - so the income I'm earning right now is for expenses that are no sooner than a year from now; month to month lumpiness actually works just fine. I expect I'll be doing a lot more of these.
I'll be looking to add more shares and/or leaps in the next few days or weeks if we continue trading down. If I were buying leaps today I would be looking at Jan '26 200 ($86), 250 ($66), or 300 ($52) calls. As I would mostly be buying these for capital appreciation I would probably choose the 300 strike with the expectation (hope) that I would be selling them as soon as summer of '24 and as late as summer '25. With a 2 year option like these, I target their close at about a year to go, and I start to get really itchy if I haven't found a good close and there is only 6 months to go.
The scenario / strategizing that I've done is that I'd like to add another chunk of shares around the $200 share price range - I suspect these will actually be leaps if I get that opportunity. The idea is to get back to my longer term target of 50/50 - those 200 strike puts I sold today will get me there should they go ITM.
Heck - I've begun nibbling at leaps, adding some of those Jan '26 300 strike leaps for just under $52. Still much higher cash in that account than I'd like longer term, but I also won't miss out so badly if we go right back to 250 the way we did the last time we spiked down into this range. I did not consider any expirations that were closer in time.
I considered selling 220 to 225 strike puts for tomorrow in the hope that I would get both the shares and the time value, but I've gotten cute like that before and earned the premium while missing out on the share sale / purchase. I learned that when what I really want is to buy or sell shares, then I'll just buy or sell shares and not be cute about it.
I've also sold 11/3 200 strike puts in a second chunk (25%) - these are primarily intended to be income, but since I'm planning to buy shares and/or leaps if we actually see that share price, then these could just be my next purchase of shares.
Closed some 350 strike March '24 calls that I sold just recently. In for nearly $11, out for $2.80 or so. Can't turn down $7.50 or so for a few weeks. I haven't done many of these 3-6 month options so far, but I'm liking what I've done so far; I'll be looking to do more trades like these.
As my focus is all about income, I think the problem I've had with trades like these is that the income is so lumpy. But lumpy income actually works quite well for me as I've been keeping the next 6-18 months of living expenses in a CD ladder - so the income I'm earning right now is for expenses that are no sooner than a year from now; month to month lumpiness actually works just fine. I expect I'll be doing a lot more of these.
I'll be looking to add more shares and/or leaps in the next few days or weeks if we continue trading down. If I were buying leaps today I would be looking at Jan '26 200 ($86), 250 ($66), or 300 ($52) calls. As I would mostly be buying these for capital appreciation I would probably choose the 300 strike with the expectation (hope) that I would be selling them as soon as summer of '24 and as late as summer '25. With a 2 year option like these, I target their close at about a year to go, and I start to get really itchy if I haven't found a good close and there is only 6 months to go.
The scenario / strategizing that I've done is that I'd like to add another chunk of shares around the $200 share price range - I suspect these will actually be leaps if I get that opportunity. The idea is to get back to my longer term target of 50/50 - those 200 strike puts I sold today will get me there should they go ITM.
Heck - I've begun nibbling at leaps, adding some of those Jan '26 300 strike leaps for just under $52. Still much higher cash in that account than I'd like longer term, but I also won't miss out so badly if we go right back to 250 the way we did the last time we spiked down into this range. I did not consider any expirations that were closer in time.
This post will probably be under Adiggs post where he says to not do this and just get the damn shares/LEAPS but...
Pivoting to selling 2-3 weeks out 200Ps to ride the rest of the year out in the 200's range and plan to buy the 200 2026 call around/before the new year.
This is cash from 2021/22 failed shares to LEAPS conversion so it is a little risky TSLA surprises and I don't regain shares.
I'm pretty pessimistic in the short to medium term after that call. If Giga Mexico is delayed, interest rates aren't budging, and 50% growth is no longer the target, I don't see what there is to look forward to for the next year or what will get us past 300. Maybe some excitement in a few weeks for the Cybertruck launch but I think that will be temporary at best.
Closed out some old 6/2024 +c200 at a loss. Sold -c220/225/230 for tomorrow and -c230/240 for next week. Also holding a few -p225 and a -p240. Right now, I'd be happy to have to roll the calls but I'm not very hopeful. Will be looking to load up on 2026 LEAPS if we get under 200.
Closed out some old 6/2024 +c200 at a loss. Sold -c220/225/230 for tomorrow and -c230/240 for next week. Also holding a few -p225 and a -p240. Right now, I'd be happy to have to roll the calls but I'm not very hopeful. Will be looking to load up on 2026 LEAPS if we get under 200.
SpeedyEddy
Active Member
Clearly someone is manipulating the stock as every little run-up is met by a big sell. So close to the bottom, but still not there. (compared to SPX moves this is strange.) I am in a wait-and-see-phase and closed some of the pairs 2026 in order not to get closer to a margin-call (yeah, the uh ohhhh has hit me too hard) . Still can buy back in on more certain moves, not trying to pick the bottom. (another sign we are close: they fomo-ed me out, right AT the bottom )
)
thenewguy1979
"The" Dog
Jim's Chart for daily trading seem on the points. SP did dip to 218 but pulled back to 220 level. Question is can we go lower in next couple of day. Maybe <200?? All it take is perhaps another price cut or a big macro right?
BTW, did regret cashing all out on puts when at 223. But a profit is a profit. Live to trade another day
BTW, did regret cashing all out on puts when at 223. But a profit is a profit. Live to trade another day
Closed out the call side of my +240p/+245c strangle this morning. Calls were down about 78% but up about 90% on the put side for a 4% overall gain so far. Kinda meh, but with what dl003 said yesterday I decided not to double down and ride the momentum down with selling atm ccs. Instead sold a nov 17th csp at $220 for $12.05 when we broke below $220.
For now I'm watching the Nov 10 +240p and contemplating on closing it out near end of day or holding then to see how Tesla fares tomorrow
For now I'm watching the Nov 10 +240p and contemplating on closing it out near end of day or holding then to see how Tesla fares tomorrow
Why do those bastages limit us like that? It really grinds my gears. Are there other brokeridges that don't limit us so much?? Would they allow it if we call them and ask them nicely?
If you didn't bother to run, you wouldn't need a shower so bad and could have watched TSLA closer all morning.Pfff, I was out for a run at open and missed the 230 high to close my -p250, then I took a shower and missed 226, and now macro craps on us too
FTFY. (For next time, anyway).
What's the reasoning for the 11/10 $220 strike? We may be higher by then.
Maybe Tesla will beat the yearly guidance and the Ford and GM reports will show how great Tesla is actually doing. I hope the macro helps the stock and we get that end of year rally that some people are predicting and I can cut all my stock at around $250 or something like that....
Update from Carey @ WickedStocks:
"Since Tesla is well below long-term support, I'm expecting continued weakness. For the day itself, I would like to see buyers step in at $225 for a potential bounce up to $234, then $239. If we knife through $225, $217 is next. Potentially $212."
Since his post we bounced $218.67, let's see if that was it.
"Since Tesla is well below long-term support, I'm expecting continued weakness. For the day itself, I would like to see buyers step in at $225 for a potential bounce up to $234, then $239. If we knife through $225, $217 is next. Potentially $212."
Since his post we bounced $218.67, let's see if that was it.
Thinking we are near enough the bottom I started my option wheel with an atm csp at $220. I tend to sell my csp or cc about a month out.
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