Wiki Selling TSLA Options - Be the House

[MikeC]

I've been working on an option strategy which requires quick buying or selling at the open or close of the market of (at least) 100 TSLA option strangles (2.5 or 5 OTM with 0.5 to 1.5 weeks until expiry).

The problem with my current trading app (IB) is that placing orders is not a fast process. National law requires that it first has to show the impact on margin before I can confirm the order, even if no margin is required. It takes the app 5-6 seconds to make that calculation, which means valuable time is lost before I can confirm the order.

When the quotes move around a lot it means I'm often chasing the market and my orders don't always get executed, especially when I choose the middle quote. My orders would immediately execute if I choose 'best' or 'market' instead of 'limit', but I'm afraid I will get a very bad price, even though the TSLA options market is very liquid and my strikes and dates are popular. Does anyone have experience with 'best' or 'market' orders with TSLA options? Is it possible to get screwed with a very low price or will you always get a normal price?

And what happens if I set a price which is a bit lower than I want (when selling)? Will it execute for that low price or is it possible that I get a better price anyway?

Thanks in advance for any advice.

I almost always do market because I don’t want to chase limit prices, never had a problem with TSLA options. I wouldn’t put in the order pre market for market open, though.

 

[Discoducky]

I almost always do market because I don’t want to chase limit prices, never had a problem with TSLA options. I wouldn’t put in the order pre market for market open, though.

Same, I've been burnt by limit on TSLA.

 

[thenewguy1979]

I do multi legged IC which are often 4 legged. If I dont do market it take a loooong time to get order placed. Save a few buck but I often lose more on the waiting. Pick your least pains….

This is on Tradestation.

 

[Jim Holder]

FYI Nio reports earnings tomorrow. May impact via sympathy moves in the EV sector. I don’t know if it has or hasn’t in the past.

 

[StarFoxisDown!]

There’s also word of the FSD V12 crash that occurred that will likely come out into the open sometime soon. That’ll likely get quite the headlines

 

[Knightshade]

There’s also word of the FSD V12 crash that occurred that will likely come out into the open sometime soon. That’ll likely get quite the headlines

Word from whom? Or do you mean the parking lot one already reported a week ago?

 

[Jim Holder]

There’s also word of the FSD V12 crash that occurred that will likely come out into the open sometime soon. That’ll likely get quite the headlines

It’s the old report from last week. No injuries:

https://twitter.com/x/status/1764483445169033344

https://twitter.com/x/status/1764488690531991677

 

[Max Plaid]

I've been working on an option strategy which requires quick buying or selling at the open or close of the market of (at least) 100 TSLA option strangles (2.5 or 5 OTM with 0.5 to 1.5 weeks until expiry).

The problem with my current trading app (IB) is that placing orders is not a fast process. National law requires that it first has to show the impact on margin before I can confirm the order, even if no margin is required. It takes the app 5-6 seconds to make that calculation, which means valuable time is lost before I can confirm the order.

When the quotes move around a lot it means I'm often chasing the market and my orders don't always get executed, especially when I choose the middle quote. My orders would immediately execute if I choose 'best' or 'market' instead of 'limit', but I'm afraid I will get a very bad price, even though the TSLA options market is very liquid and my strikes and dates are popular. Does anyone have experience with 'best' or 'market' orders with TSLA options? Is it possible to get screwed with a very low price or will you always get a normal price?

And what happens if I set a price which is a bit lower than I want (when selling)? Will it execute for that low price or is it possible that I get a better price anyway?

Thanks in advance for any advice.

I get the same problem. I have no "market" price possibility for selling, I have to do it with limit orders, and they have to be placed, cancelled, tweaked, placed, etc., time-consuming and frustrating...

Normally I tend to pick a strike and premium I like, then set the order before make opens based on the directionality in pre-market, in any case, at open there tends to be a lot of volatility in both directions and IV spikes, so often the order gets filled, even the more optimistic ones

 

[SpeedyEddy]

PM $TSLA still looks OK to me, which I did not expect at all after Friday's 5.95 billion news
(Pre-market Bought back my Friday's sold $PLTR for $1.50 cheaper.
Sold half of $TOM.OL (Tomra), that is falling for the the fifth day now, but still 10% above my buying-price.)

 

[Max Plaid]

PM $TSLA still looks OK to me, which I did not expect at all after Friday's 5.95 billion news
(Pre-market Bought back my Friday's sold $PLTR for $1.50 cheaper.
Sold half of $TOM.OL (Tomra), that is falling for the the fifth day now, but still 10% above my buying-price.)

Hmmm, I'm not sure 1.5 - 2% down is "OK", but I understand where you're coming from

I'm looking to add some more 3/8 -p200's, sold 25x on Friday @$2.6, going to try for 25x more at open for $5.1, optimistic, but might work out

 

[SpeedyEddy]

Pre-market Bought back my Friday's sold $PLTR for $1.50 cheaper.

Good thing I did that @ 24.05 already!
SMCI will likely be a rollercoaster today, planning on trading DITM +C and/or +P 3/8 shortly after market open WITH the trend, ready to close out on any pause/turn. Watching volume on moves closely. (and RSI of course, might spike above 90 again, which surely would be a sell-signal)

 

[intelligator]

Good thing I did that @ 24.05 already!
SMCI will likely be a rollercoaster today, planning on trading DITM +C and/or +P 3/8 shortly after market open WITH the trend, ready to close out on any pause/turn. Watching volume on moves closely. (and RSI of course, might spike above 90 again, which surely would be a sell-signal)

What time frame are you using for RSI? I am using 7...

 

[Jim Holder]

https://twitter.com/x/status/1764658483260240136

 

[SpeedyEddy]

What time frame are you using for RSI? I am using 7...

1-10 minutes, all the same, well over 80, so trend will go down, I guess

 

[DaBooster]

3/8
BPS
-p185/+p165
$1.12

 

[dl003]

Guys let stay civil and trade in the between. Our goal is to make money whether the SP goes up or down or flat. We all want it to go to the Moon that’s fact. No one want Tesla to failed….I would hope.

Im happy it stuck between 192 to 205 now since it make those trade lots more preditables. If it Moon that great too as we can trade the upsides.

Right now trading the flatness and the AI hypes NVDA is good till it last.

Ride out the storm till we see a break in the cloud . Then move on to Plan B.

dl003 and others will till us when. Silly dog me just enjoyed the rides and follow wagging his tails.

"others"?
195 btw.

 

[Surfer of Life]

IMHO, we’re asking a bit much of @dl003 .

 

[Surfer of Life]

If we DO hit $190… I’m wondering, is this the low, or are the 170’s still in play?

 

[dl003]

IMHO, we’re asking a bit much of @dl003 .

Depends on what's being asked I guess. It's a bit much for me to have to play bear at the top and bull at the bottom against 90% of people here, like every time. But maybe I should just look at the brighter side and use this thread as my contra indicator.

 

[BornToFly]

Corey at Wicked Stocks has 192.78 as possible daily containment with bounce back up. Otherwise we are looking at 182.71.