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Wiki Selling TSLA Options - Be the House

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Does he?

AFAIK he's raised $0.00 from the AI venture. He filed to be ABLE to raise, then said in public he had no plans to do so right now.

SpaceX is fairly illiquid compared to TSLA, they ARE reportedly doing a cap raise from insider shares but only to the tune of hundreds of millions (and I doubt Elon is the ONLY insider selling in this raise)-- when Elon needs to bail the bird app out again he's gonna need something with a B in front of it.

I don’t have any specific information and you may be right. No one knows. Reading between the lines, however, based on his comments during and after his recent interview with Sorkin he did insinuate he is willing to let the bird die if so be it “and let Earth judge who’s fault it was.”

Either way we should probably get this thread back on topic.
 
Started small positions:
STO 2x -C280 3/15/24 @$9.00 (for expected Jan/Feb weakness)
BTO 10x +C250 12/29/23 @$3.40 (lotto)

STC the call at 3:59pm for dinner gains. Can always re-buy tomorrow if things look better.

Also BTC the short call once we bounced more firmly off the 50-day.

Kinda no-man’s land here and I’d rather be flat on these overnight.

So far lousy two days of trading with no real gains thanks to the murky action and my unwillingness to take unforced risks. Hopefully we don’t just chop/drift for the next couple of months without decisive direction.
 
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Elon has money available from SpaceX and the AI venture from what people are saying. Not an immediate or even near-term concern to worry about.

Tesla’s growth, execution, ASP, margins, etc., however will definitely direct stock performance. We just have to see the early signals and trade both sides in the spirit of this forum of “Being the House.”
I always thought SpaceX was a constant money drain rather than being "money available"...
 
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STC the call at 3:59pm for dinner gains. Can always re-buy tomorrow if things look better.

Also BTC the short call once we bounced more firmly off the 50-day.

Kinda no-man’s land here and I’d rather be flat on these overnight.

So far lousy two days of trading with no real gains thanks to the murky action and my unwillingness to take unforced risks. Hopefully we don’t just chop/drift for the next couple of months without decisive direction.
My lousy days are when I have to eat dry foods. That's been going on lately with these Long Call holding for 2+ weeks. We may be in for a long haul (chop/drift/ posturing) if no rally or direction by end of December.

But again "boring" may be a good time to sell the flatness till we get that direction......be the house Jim...be the house.....not the gambler or you end up looking like me ;)
 
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Be the house Jim...be the house.....not the gambler or you end up looking like me ;)

Of course, but to sell CCs effectively (not the gambling way…) we need to have a handle on trend and estimate velocity toward direction. Neither of which is clear right now. In fact it’s clear as mud lol.

As soon as the wedge resolves it should be easier to choose reasonable strikes and DTE to sell. Doing so beforehand is just asking to get taken out to the shed and fed stomach acid for happy hour 😎
 
Based on Friday if we're still posturing I was thinking of the below play.

Delta of .32 on the Put side and .09 on the call side. This is based on the bull bias (if it still hold).

It's ping ponging but it's the buyers that play and the risk is defined by the extra shorts legs. Max loss if it go to the moon or dump like no tomorrow is usually less of what shown as one side is always "winning".

Doing a directional credit spread is more risky unless the direction is more clear.

Little dog just doing little bet to buy a nice hot meal.


1702428256106.png
 
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Of course, but to sell CCs effectively (not the gambling way…) we need to have a handle on trend and estimate velocity toward direction. Neither of which is clear right now. In fact it’s clear as mud lol.

As soon as the wedge resolves it should be easier to choose reasonable strikes and DTE to sell. Doing so beforehand is just asking to get taken out to the shed and fed stomach acid for happy hour 😎
(not-advice)
I may not be in this mental space currently, but something that's taken me 2 or 3 years (not exaggerating) to develop is a money management, position management, income need, and point of view that allows me to be out of the market whenever, and however much, that I need to be. I've been out of the market for many weeks in a row, several times this year. A year ago that would have stressed me out.

If you've got a strong view that both directions are dangerous for you right now, then that makes this a great time to not be in the market. In service to your own stomach acid if nothing else.
 
I don’t know about you guys but this is just fine for my ITM calls from 230-240 for Friday. I’m happy to roll for credit but if they can expire without the stock tanking, that’s even better.

Fab! This is a good example of sell-and-hold working, vs. my trying to double and triple dip like I’ve been doing recently and closing contracts with some gains, and then losing opportunity to get back into them.
 
If you've got a strong view that both directions are dangerous for you right now, then that makes this a great time to not be in the market. In service to your own stomach acid if nothing else.

So true! I’m fortunately positioned for both sides on longer term contracts, but flat near term. This way I can benefit from larger macro moves that aren’t tied to a tight schedule, and trade separately when trend is clearer.

Currently have:
12x -P290 9/20/24 (gains when TSLA runs)
10x -C300 9/20/24 (gains when TSLA falls)
15x -C510 1/16/26 (gains when TSLA falls)
Can also just hold these to near expiry too and roll if necessary.
 
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Of course, but to sell CCs effectively (not the gambling way…) we need to have a handle on trend and estimate velocity toward direction.
The assumption being you can get a handle on all these and the SP will not surprise you.

We have seen again & again that SP movement will surprise you - several times a year, infact. News always drowns out TA.
 
Not to speak for MP, but Elons last comment on this I'm aware of is:

"I won't sell stock until I don't know probably two years from now. Definitely not next year under any circumstances and probably not the year thereafter,"

That was from 2022. So his "definitely" was about 2023, which is about to end.
Indeed, this was what Elon stated on the Twitter space he joined, but my view is that the finances of X have degraded since then with the exodus of ad revenue and I read a compelling article a couple of weeks back that put forward April was the likely time-window when he would requite funding

For sure Elon did imply in the Sorkin interview that he would let X die if necessary, but seemingly back-tracked on this a few days later when he posted that he'd never lost investors in his companies money and he wasn't about to start now

So yes, I think it's coming, and even if it's not coming, a lot of people think it's coming and that makes investors very nervous - why buy in now when they can wait until the next "event" and then grab the stock at a huge discount

And we mustn't forget that Musk has a ton of options to exercise by 2028, way more than he did in previous years, of which he'll need to pay huge taxes, will mean selling TSLA regardless of the situation with X

Of course it's Elon's right to sell some stock, but his method on selling is the issue, even selling on the open market it could be done a lot better - spread the selling over the year, plan well ahead, trickle-sell rather than opening the tap full

Anyway, I think we have a lot of risk in the coming year and very few upside catalysts, so I'm trying to position for that, with my current priority being to being to sell the 60x Dec 2025 +c200's that I bought (in hindsight) at too high an SP -> $720k locked-up in those right now
 
Just a heads up to all the gamblers here.
It’s time for my vacation TA .
Vacation starts on Dec 23, fasten your seat belts for the launch
Vacationing with family , so a regular launch , not expecting a falcon super heavy launch .
Last vacation was in May 2023, and you all know what the stock did those 2 weeks
IIRC 160-270
Time to buy YOLO 1DTE 20% OTM Calls I guess