Wiki Selling TSLA Options - Be the House

[jeewee3000]

Took advantage of the dip to close my short calls.

(I had sold 240cc's and 260cc's for next week when SP was around 236 earlier this week. I thought we'd hit resistance at $240, but as you all know we broke through that strongly.

I managed to get out of the 260's at breakeven. The 240's I took a substantial loss but I'll more than recover from that by stock gains if we return to $246 or push through to $260)

 

[SpeedyEddy]

I just did such a -C 232.50 against 1/3 of shares held to take a day-trade profit somewhat like you consider @BornToFly, with intention to close on SP below 230 or so (221 should hold as 200 MA and recently created support) looks like a losing position already ($1 a pop), but will hold on until gap-close (243). Yesterday I have read a lot of enthusiasm to the upside, where I thought that we only achieved the required gap-close of 245, making a refrain of downturn kind of likely. Still got some -C left-overs from yesterday and earlier this week, that I surely will hold on to and maybe wicked stocks and @dl003 agree on low 239 being a critical level to hold today. Could become a volatile day, so happy to watch it all happening. For now it seems the market thinks we're OK!
(Next low on the minute (as well as next low on SPX and Nasdaq) can tell where we go (lower low, down we go (where did I get that false read earlier this week....just me releasing camel farts maybe?)...)

 

[MikeC]

With all due respect, no one seems to mention the short term capital gains tax on the profits and the negative effect of Wash sale rules on all these trades/ rolling over contracts. The profits you see today may not actually be profits when the tax man comes calling. Just beware of the Wash sale rules- specially when rolling contracts.

Well, taxes are a given when you make money. I also don’t believe contracts with different expirations are “substantially identical” so wash sale wouldn’t apply - and even if it did, it all washes out in the end. Plus I’m doing my trades in an IRA.

 

[BornToFly]

Seeing Macro recover so quickly makes me think this is a trap and go. So I didn't sell the 2025 calls yet.

 

[SpeedyEddy]

maybe the rebound is the trap .. you never can tell until it develops

 

[Knightshade]

I've got a couple dozen -C235 11/17s still to deal with... looks like I can net $1.50/sh following your 1/19 -C265 roll idea so seriously thinking about doing so... (could also do 270 strike for about even but if we get the 260 top and pullback suggested taking the $1.50 makes more sense)... still like $2/sh time value showing on the 11/17s though...

FWIW I ended up making this roll on the dip this morning and getting the roll to -C265 for 1/19 with $3.50 in premium instead of the $1.50 of yesterday so good/lucky call on waiting I guess... (well, unless we shoot way up from here and have no dips before mid-Jan I suppose...or we close tomorrow under 235 and I could've just left them alone...)

 

[Max Plaid]

All looks to be a fight over SPY 450 right now...?

And looks like "they" want to avoid the c240 wall for this week

 

[Jim Holder]

QTA Levels for Today

11/17

11/24

 

[SpeedyEddy]

seems like $TSLA shorts loose it, Nasdaq and SPX both had higher bottoms, so I closed my short, believing this is a false move!!!!
[EDIT] MAYBE, NASDAQ AND SPX WILL AGREE A BIT LATER ON HAVING A LOWER BOTTOM, SO BEWARE! [/EDIT]

 

[SpeedyEddy]

So we all seem to agree... top has been set yesterday..
GAP-fill 224 at least, 220 MA must hold.
(what an island reversal would that be if one of these days all gaps down on opening)

 

[EVNow]

I’m trying to understand if I’m missing something, is the only fear of having a covered short call (not on margin) going ITM is that we missed out on more gains?

If you are selling in taxed account it will have tax implications as others have noted. Even if you are selling in IRA, if you also have transactions in taxed account, you can get into washed sale issues.

I'm currently selling CC in IRA. I don't have any wash sale issues in my taxed account. Yet I don't want to let my 240 and 245 CC get taken away - simply because it would mean I make less money with them and not the price I want to sell at (their avg cost basis is in 260s). It is also disruptive i.e. it takes a couple of business days to get settled and you can't write puts in that time ...

So we all seem to agree... top has been set yesterday..

Doesn't matter whether we all agree ("group think") or not. SP does what SP does ...

 

[EVNow]

Esp. now when the calls are just $4 ITM and might even end up OTM in a couple of days.

Oh well. Lets see where we are tomorrow.

I'm trying to roll to 260 for a good premium. Hopefully I'm not greedy and it actually works.

 

[BornToFly]

On the Maximum-Pain website, I always forget which chart shows the actual contracts that are currently in existence. The Open Interest or Volume Chart Maturity? The latter makes it look like a close tomorrow between 235 and 240 even though it says max pain is 230.

 

[SpeedyEddy]

On the Maximum-Pain website, I always forget which chart shows the actual contracts that are currently in existence. The Open Interest or Volume Chart Maturity? The latter makes it look like a close tomorrow between 235 and 240 even though it says max pain is 230.

The first one is up to date untill yesterday and the second one is "trading today" (called volume) (so still trading above max pain)

 

[Max Plaid]

The first one is up to date untill yesterday and the second one is "trading today" (called volume) (so still trading above max pain)

Yes and where you see the most daily volume trading activity is often more indicative than the previous day's OI

Of course the pirates have access to real-time everything, so they see if those volumes are net buying or selling, which makes a big difference, of course, we just see that so many were traded

 

[BornToFly]

Approaching a double bottom. Do we bounce soon or keep going down? Might close the 255CC for next Friday, that I opened when I bought shares yesterday, for a nice profit. That would give me 160 contracts available to help save 200X 247.7CC next week. I know Max Plaid could make that work....

Edit: Done. Took a quick $1.5 profit in one day.

 

[SpeedyEddy]

Approaching a double bottom. Do we bounce soon or keep going down? Might close the 255CC for next Friday, that I opened when I bought shares yesterday, for a nice profit. That would give me 160 contracts available to help save 200X 247.7CC next week. I know Max Plaid could make that work....

Nasdaq and SPX have hit a support as well, so maybe we get a bounce.
(triple bottom would be best in tesla's case )

 

[Max Plaid]

Curious, TSLA often going opposite to the indices and other tech stocks - are they using it to try and drag the SPY/QQQ down, is that a thing?

 

[juanmedina]

It seems that my shares don't want to leave me.

 

[SpeedyEddy]

Looks like a (lately frequently seen) flag pattern, firmly forming ground so in this case a bull-flag that could make later a run-up to the crucial 239.44 possible, keeping all directions open for tomorrow.