Wiki Selling TSLA Options - Be the House

[corduroy]

Here's my gentle T-ball moves made right at the open. I've got another option in the barrel to use.

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I also sold a few of those $800 for $.65. Although I'm not expecting us to break $700 this week, I don't want to be stressed out if Elon says something mind blowing in earnings today. Holding off on rolling puts or BPS for now.

 

[phantasms]

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Thank you! This is so much better than what I've been working with on Chase.com and Yahoo. Time to fire up the ol ToS. Welp, next Monday.

 

[juanmedina]

It seems that my put spreads are going to print I have 550/500p and 580/560p. I also have 700cc, 702.5cc, 710cc, 715cc, 720lcc, 730lcc, 735lcc lol. A little bit of everything for Friday.

 

[UltradoomY]

Contemplating a strangle before the day is done. The P$662.50 / C$665 bought strangle has a cost of $4k each but with a binary event can be profitable with some exaggerated movement from the earnings call.
Probably stay small, to try this out.
Have a $570p/$490 BPS (my first) expiring Friday.
Looking to open the next for 08/13 sometime before the end of the day as well while IV an thus premium is high.

 

[Yoona]

It seems that my put spreads are going to print I have 550/500p and 580/560p. I also have 700cc, 702.5cc, 710cc, 715cc, 720lcc, 730lcc, 735lcc lol. A little bit of everything for Friday.

As usual, on Mondays i roll all my BPS to next week. This way, no babysitting stress on current week.

Just need to learn how to time it (is it during dips? peaks?) so i can maximize credit.

 

[adiggs]

As usual, on Mondays i roll all my BPS to next week. This way, no babysitting stress on current week.

Just need to learn how to time it (is it during dips? peaks?) so i can maximize credit.

NOT-ADVICE.

With the BPS I believe that its better to roll during dips. That'll put the current spread near its maximum value (thus lower realized P/L) but it also means that the new BPS will be sold at its maximum value.

The further out BPS will be larger, so max value on the new position is more valuable than min value on the current position.

The nice thing about spreads is that this effect is damped out to some extent. And there is a limit to just how bad you can get this - anything that is good on one side of the roll is bad on the other side; and vice versa.


Assuming of course that you're doing functional or actual rolls, so you're staying in the market. Obviously if you could close at a local high, wait, and then open at a local low, you'll do a lot better. That sounds like a lot of babysitting to me

 

[Tslynk67]

As usual, on Mondays i roll all my BPS to next week. This way, no babysitting stress on current week.

Just need to learn how to time it (is it during dips? peaks?) so i can maximize credit.

Wednesdays seem to be my favourite moment to roll - most of the theta is out of the end of week strike, but still there in the next. The less ITM the puts, the better the roll premium

 

[dl003]

Personally, I'm just tired. I already accept that the stock will go down post ER. Maybe that's a signal for this being the bottom?

 

[juanmedina]

is going to be a fun week

Please don't announce a split lol

 

[phantasms]

That's a huge beat, typical manipulated SP in AH, normally this would be way up and I'd be saying adios to those puts and planning my call roll strategy...

If the MM's want to nil the SP to $700 on Friday, that's also OK for me...

So you’re saying I should be as concerned as I am about my $770 call I wrote? lol

 

[LN1_Casey]

Welp, I need a lot of liquid cash soon to give a loan to my brother, so wrote a call for 665 for Friday. Got a neat $21 upfront, and don't mind it if it is called away. I'll use the cash to front some weekly puts if it is, until the loan occurs. If it doesn't get called (because why would wonderful earnings increase the stock price? ) than I'll do the same for next week Monday.

 

[AxlxA]

The beat was pretty stellar. Any other stock would've seen 5% up AH.... I'm gonna buy more long shares as soon as I have money

 

[Chenkers]

Just need to learn how to time it (is it during dips? peaks?) so i can maximize credit.

I've actually found it better to roll a BPS on a peak for me. Try a few dummy rolls on peaks and troughs and you will see what works best. Generally if rolling, the earlier in the week the better as the P+ gets nasty close to expiry. I also once made the mistake of rolling the P- and P+ sides a day apart. That hurt bad when the stock moved down and I was left a big debit to roll the P+.

 

[BETA1019]

I wrote 700-strike covered calls against my shares yesterday when it was trading at around 650. The premium was so not worth it at this point with that beat...

I think it could have a multi day run, especially if other earnings are good. Does anyone have any advice on how best to manage this? Do I take the L and let my shares get called away at the end of the week and miss out on the potential upside, or take the L and buy back the covered calls at a L?

 

[Chenkers]

I wrote 700-strike covered calls against my shares yesterday when it was trading at around 650. The premium was so not worth it at this point with that beat...

I think it could have a multi day run, especially if other earnings are good. Does anyone have any advice on how best to manage this? Do I take the L and let my shares get called away at the end of the week and miss out on the potential upside, or take the L and buy back the covered calls at a L?

Look for an IV crush once TSLA gets into trading. IV for 30Jul expiry was up around 78% and could drop into say the 50's. That would see option prices drop significantly and if combined with a MMD could be a good opportunity to close calls if that's what you want to do. I sold a few $702.5 at around $6.50 and will likely hold these for a while or to expiry, unless I think it's going to run. I'm not worried closing these out for a bit of a loss if needed. Plus I can always sell more CC once it's clearer if the MM can pin the stock.

 

[JustMe]

I wrote 700-strike covered calls against my shares yesterday when it was trading at around 650. The premium was so not worth it at this point with that beat...

I think it could have a multi day run, especially if other earnings are good. Does anyone have any advice on how best to manage this? Do I take the L and let my shares get called away at the end of the week and miss out on the potential upside, or take the L and buy back the covered calls at a L?

You could roll the calls to a higher strike and a later closing date.

For instance, yesterday closing prices of calls:
7/30 700c $7.33
8/6 715c $7.97
8/13 735c $7.73
8/20 750c $8.20

To do this, you would buy your calls back and sell the new ones in a single transaction. It protects your shares from being called away and prevents a loss, but you may be stuck waiting a few weeks (or more) until the premium on your new calls decays. You should be mindful that the share price could run past your new covered calls in a sustained rally and you would be faced with this same dilemma and the same choices.

One thing in your favor is that IV usually falls after the earnings report, so you may be okay today.

good luck

 

[phantasms]

Look for an IV crush once TSLA gets into trading. IV for 30Jul expiry was up around 78% and could drop into say the 50's. That would see option prices drop significantly and if combined with a MMD could be a good opportunity to close calls if that's what you want to do. I sold a few $702.5 at around $6.50 and will likely hold these for a while or to expiry, unless I think it's going to run. I'm not worried closing these out for a bit of a loss if needed. Plus I can always sell more CC once it's clearer if the MM can pin the stock.

That worked. Bought back most of my calls this morning at ~85% profits. Hoping to sell again into a rally later in the week.

Can't believe we're down 1% already.

 

[Knightshade]

That worked. Bought back most of my calls this morning at ~85% profits. Hoping to sell again into a rally later in the week.

Can't believe we're down 1% already.

Same on both counts.

I've still got sold puts for Friday out there that aren't worth rebuying right now (some at 630, some at 647.50, all sold last week)- pretty confident in the 630s expiring worthless... unsure if I'd wanna roll the 647.50s if it's close Friday or just let it ride and maybe take the shares at a net price under 620 via margin.

 

[corduroy]

Also closed my calls at 90%. Then rolled my $585 puts to next week for $3.25 credit. I get macros aren't great, but this dip after yesterdays earnings is ridiculous.

 

[juanmedina]

I get more premium rolling my put spreads today than yesterday with IV dropping 6 points now at 44.