Wiki Selling TSLA Options - Be the House

[EnzoXYZ]

For those that are thinking or have already bought some LEAPS: Please explain to me the rationale behind this trade ATM.
Will this be swing trade or will you likely keep it?
With the current macro environment and negative TSLA outlook well into 2024 why not wait?

I haven't bought LEAPS in the past and would like to add some vs actual shares with my cash.

 

[MikeC]

For those that are thinking or have already bought some LEAPS: Please explain to me the rational behind this trade ATM.
Will this be swing trade or will you likely keep it?
With the current macro environment and negative TSLA outlook well into 2024 why not wait?

I haven't bought LEAPS in the past and would like to add some vs actual shares with my cash.

I’m only willing to buy 1/2026 at 100 or 150 strike right now because of the negative outlook. Trying to be patient for once and wait for blood in the streets and margin calls before I open anything more aggressive.

 

[Jim Holder]

not bearish

Nice! If we get up over $210 area and head toward MP $217.50 tomorrow, what strikes/DTE would you look at for near term -C's?

 

[Jim Holder]

For those that are thinking or have already bought some LEAPS: Please explain to me the rationale behind this trade ATM.
Will this be swing trade or will you likely keep it?
With the current macro environment and negative TSLA outlook well into 2024 why not wait?

I haven't bought LEAPS in the past and would like to add some vs actual shares with my cash.

For me it's a swing trade for next pop and cut before next leg down if one comes. In about four week is the CT event and we may or may not see a run into it, especially if SPY/QQQ have a relief rally/DCB underway by then.

 

[Oil4AsphaultOnly]

For those that are thinking or have already bought some LEAPS: Please explain to me the rationale behind this trade ATM.
Will this be swing trade or will you likely keep it?
With the current macro environment and negative TSLA outlook well into 2024 why not wait?

I haven't bought LEAPS in the past and would like to add some vs actual shares with my cash.

I traded 100 TSLA for 2x Jan 2025 +185c (they cost $65/shr) this morning for a net credit that I used to close some 12/2025 -400c. The rationale is that IF the x-mas rally does happen, I'm leveraged for the rise. And if it doesn't, then at least the leaps won't drop as quickly as TSLA will (percentage wise). I also just don't see TSLA reaching 100 again, even if 2024 is bad.

 

[MikeC]

I traded 100 TSLA for 2x Jan 2025 +185c (they cost $65/shr) this morning for a net credit that I used to close some 12/2025 -400c. The rationale is that IF the x-mas rally does happen, I'm leveraged for the rise. And if it doesn't, then at least the leaps won't drop as quickly as TSLA will (percentage wise). I also just don't see TSLA reaching 100 again, even if 2024 is bad.

How would the LEAPS not drop as much as TSLA by %? Leverage works both ways.

 

[SpeedyEddy]

Got back in on shares as well as -P +C 2026 (about at the money) around sp $208

 

[Oil4AsphaultOnly]

How would the LEAPS not drop as much as TSLA by %? Leverage works both ways.

Because bad math! You're right, I made a mistake in my calculations! the LEAPS actually dropped more in value as a %. Not gonna undo the trade though, since I'm a gambler.

 

[thenewguy1979]

Sold all my puts. Done for the days. Not risking it for 1 more day….good luck guys.

That 205 resistance was pretty tough. Was waiting for it to break. Never did. Closed all at 205.

Some profit is always better then any lost.

 

[Cherry Wine]

Price action seems bearish. Shaping up for first close below $212 and the 2023-low VWAP. I took profits on some 11/24 +p200s (600%), but opened a new 10/27 +p200 position for relative pennies in case the stock drops off a cliff tomorrow.

Still holding 30x 11/24 +p200s.

 

[juanmedina]

Amazon beat everything is ok.

 

[EVNow]

That 205 resistance was pretty tough. Was waiting for it to break. Never did. Closed all at 205.

Wicked Stocks & The Daily Trader didn't have 205 as a solid session support (or any support for that matter).

I'm guessing more options related support.

 

[thenewguy1979]

Wicked Stocks & The Daily Trader didn't have 205 as a solid session support (or any support for that matter).

I'm guessing more options related support.

No just me personally looking at the screen and seeing SP bouncing off 205 at least 3 times since the morning

Amazon earning seem to sooth Macro for now. All major stocks/indexes back in green AH. Next Macro is the PCE data tomorrow. Good lucks for any holding Contracts for tomorrow. Personally I think we ran out of steam for the week and Tesla SP will go back to 212 for a flat week.

 

[elasalle]

For those that are thinking or have already bought some LEAPS: Please explain to me the rationale behind this trade ATM.
Will this be swing trade or will you likely keep it?
With the current macro environment and negative TSLA outlook well into 2024 why not wait?

I haven't bought LEAPS in the past and would like to add some vs actual shares with my cash.

You want more leverage
You think we are at or near a local bottom (could be wrong big time), but also hard to time the exact top/bottom, i.e reversal
You think macro/world issues will resolve itself in 2 years
You think there are too many trying to short and think there will be a reversal ....

... if above are not agreeable, then you don't buy Leaps

 

[Jim Holder]

Interesting video showing TSLA vs NASDAQ action on one screen for those who study correlation:

https://twitter.com/x/status/1717640491037327560

 

[Cherry Wine]

Price action seems bearish. Shaping up for first close below $212 and the 2023-low VWAP. I took profits on some 11/24 +p200s (600%), but opened a new 10/27 +p200 position for relative pennies in case the stock drops off a cliff tomorrow.

Still holding 30x 11/24 +p200s.

I consolidated my 10/27 +p200s to 10/27 +p205s at a 2:1 ratio right at the close. Would rather have fewer contracts at a strike more likely to end up ITM than the other way around. It's not a huge position, only 10 contracts, but preserved the negative delta I closed out with the 11/24 +p200s through tomorrow.

 

[thenewguy1979]

Interesting video showing TSLA vs NASDAQ action on one screen for those who study correlation:

https://twitter.com/x/status/1717640491037327560

Based on this correlation we have seen play out. If SPY Santa Rally starting after FOMC (Nov 1st) guess the plan is to go long?

 

[intelligator]

*Feels like it to me* that we are close to a local bottom. Thinking of opening put spreads Friday for 11/3, same as what I'd opened and closed for 10/26 Monday/Tuesday, $20 wide +p160/-p180. I am basing this decision on volume near same 200-230 SP band. Although too low and early to tell, 11/10 widens and has more interest outside this range. What y'all thinki for next week? I can't trade anything that expires same day, hence looking at the week ahead.

 

[juanmedina]

Closed them out today. This is what the last of them looked like.
View attachment 985513

I wish I hadn't closed my puts. So are you going long now?

 

[thenewguy1979]

I tend to be nimble with my option. If they go too far out of money I just closed them to reduce lost. Then look-out for potential reversal and buy them back at sometimes much lower cost. Puts were cheaper as stock pump intraday yesterday and close to expiration. Got a couple share of the 205 expired 10/27 for $1 yesterday. Sold them today for $2.5.

Small move for a small dog but at least no dry doggy food tonight.