Wiki Selling TSLA Options - Be the House

[DaBooster]

Sure sounds like Wedbush sold a lot of weekly puts lol.

While you can look at this news as a positive it also adds uncertainty especially after what Musk said about his control.

I sold a few CSPs at the end of the day. I figured we would trade sideways for this week.

BTW isn’t this the same judge that was appointed for the Twitter case?

Same Judge McCormick

 

[Jim Holder]

Why would you sell at a low price … unless converting to leaps ?

1) To buy back lower
2) To stop the value of the port from losing value as the SP drops and pulls the net liq down with it, and to lower risk of getting a maintenance call for my short puts.
3) To convert to LEAPS if that's the prudent thing to do.

 

[thenewguy1979]

forget tomorrow. We might hit upper 170 tonight.

Seem Market is not taking the news lightly.......

 

[Jim Holder]

forget tomorrow. We might hit upper 170 tonight.

View attachment 1013731

It seems to be bleeding on low volume, not major capitulation, are you seeing same?

 

[Jim Holder]

In a way it's good TSLA was testing mid-$190's today so now that we're falling, we are at least falling from a higher spot instead of continuing down from $180 and be at $172 now...though don't let me jinx it.

I don't think this will result in a true crash. $180 will hold.
(Famous last words...)

 

[juanmedina]

What is the plan for tomorrow? Buy shares at $175 for tomorrow and hope for the best? And keep some ammo for lower?

@tivoboy where is that plan that you were working on? Or is doing nothing the plan?

 

[Max Plaid]

Never a dull moment, eh?!

Obviously I’m pretty pleased I rolled down and reduced my short puts today, plus the -c185’s probably get to close out tomorrow too

Why would you sell at a low price … unless converting to leaps ?

Question is, would I buy my long positions with the current prices, and the answer is yes, so I’ll just hold them…

But I might just sell a shitload of September -c250’s, then worry about it later

 

[vikings123]

1) To buy back lower
2) To stop the value of the port from losing value as the SP drops and pulls the net liq down with it, and to lower risk of getting a maintenance call for my short puts.
3) To convert to LEAPS if that's the prudent thing to do.

I’m sitting on a lot of cash but in no rush to deploy it. Of the shares I have left there are some with 200$ cost basis so if we break 180 and close below I will let those go.

In terms of when I buy them back and deploy my extra cash? I’m not going to bother with DCBs and pumps, will wait for the stock to start trading above 50 day and/or after a huge macro correction which is obviously coming.

 

[vikings123]

What is the plan for tomorrow? Buy shares at $175 for tomorrow and hope for the best? And keep some ammo for lower?

@tivoboy where is that plan that you were working on? Or is doing nothing the plan?

Not Tivoboy but why try to catch a falling knife. Even without this judgement we were positioned precariously from a technical perspective. Wait until it starts trading above 50 SMA unless you want to trade DCBs which is not fun.

 

[thenewguy1979]

In a way it's good TSLA was testing mid-$190's today so now that we're falling, we are at least falling from a higher spot instead of continuing down from $180 and be at $172 now...though don't let me jinx it.

come on Jim.....now we hitting 160 tomorrow

Yes, very low volumes but normal for AH I think. But Market tend to overreact after a major new break. Tomorrow may paint a different story.

 

[EVNow]

1) To buy back lower
2) To stop the value of the port from losing value as the SP drops and pulls the net liq down with it, and to lower risk of getting a maintenance call for my short puts.
3) To convert to LEAPS if that's the prudent thing to do.

i guess the time for that was when SP hit 260 or even 300 ?

I’m half cash … but essentially the issue is always, you don’t know when and why SP might shoot up.

 

[EVNow]

forget tomorrow. We might hit upper 170 tonight.

Seem Market is not taking the news lightly.......

View attachment 1013731

They didn’t like MSFT and Google ER.

 

[Jim Holder]

i guess the time for that was when SP hit 260 or even 300 ?

Yup! Even $228, $217, $207, $198 lol.
Missed them all.

 

[Jim Holder]

On the bright side, in a way it's good to rip the Band-Aid off and get all the pain over with while the SP is already taken behind in the woodshed

 

[MikeC]

I’m closing my short puts and CCs tomorrow. Will sell more shares to buy LEAPS if we get a bigger drop.

I get the uncertainty, but this just doesn’t feel like a negative for the company to me. I’m just imagining what the stock will do when an updated incentive package that tops out at $5T market cap comes out. If Elon believes it will be the most valuable stock, I think he will accept the challenge of getting it there, and that will be worth the 25%. Everybody’s happy.

 

[intelligator]

Doesn't appear to be a drastic OI shift up or down. Also note that these diffs are based on option market end of day, the pump was after hours. c200 added about 11k, c192.5 about 10k, p185 16.6k, p175, 13.5k, overlap at 185 to 192.5, mp sticky at 187.5 , put:call .73

EDIT: 2/2 +gex at 187.5, -gex at 185 ... will the price retreat?

Well, I was close guessing pirce action based on gex and OI ... with the exception of the p175 (not yet) and c200, most strikes were touched. I'm concerned that it's now going down before up to otherwise touch 200-210 and stay there for a few weeks. That would have given some leeway to move -Ps to lower strikes before extrinsic starts to melt away. Rolling far out and down is an issue in that it then ties up margin. Flip rolling isn't going to be possible either. I don't want to sell shares; this is a taxable account where 80% of TSLA are cost basis in the low to mid 30's.

Looks like I'll be spending a bit of time on optioncalc to come up with a short and longer term plan.

EDIT: I got it !!! I'm gonna get out of NVDA long positions , take profit which is almost 400%, swap the gain for the loss to close out these spreads, move on and keep TSLA long.

 

[elasalle]

They didn’t like MSFT and Google ER.

And we have FOMC tomorrow …

 

[juanmedina]

I’m closing my short puts and CCs tomorrow. Will sell more shares to buy LEAPS if we get a bigger drop.

I get the uncertainty, but this just doesn’t feel like a negative for the company to me. I’m just imagining what the stock will do when an updated incentive package that tops out at $5T market cap comes out. If Elon believes it will be the most valuable stock, I think he will accept the challenge of getting it there, and that will be worth the 25%. Everybody’s happy.

What LEAPs have you been purchasing?

 

[EVNow]

Yup! Even $228, $217, $207, $198 lol.
Missed them all.

I guess you could sell below 175 and put in a limit order to buy back if SP reverses.

 

[mongo]

From a purely fiscal TSLA point of view, this was a positive
Removes 304M shares of dilution
$2B+ of GAAP "income" added in (reverse stock compensation charges)

From a Tesla/Elon point of view it's sucky, but maybe allows viewing as a 'turning point in corporate responsibility'

Of course, they could appeal, which means more uncertainty.

Any new plan avoids CA taxes, so that's a plus for Elon