Wiki Selling TSLA Options - Be the House

[dl003]

haha. I have no cash everything that I make gets reinvested in shares. I trade through 4 IRA's and my after tax. I guess I will have to build some cash reserves because I see some opportunity on day trading options.

the $25k threshold is a requirement for your account balance, not just your cash account and I imagine you must have more than that, considering your investment vehicle.
In an IRA, you have a different rule which is Free Riding. This applies to unsettled cash. Basically you can't use unsettled cash (in case of rapid buying and selling) to buy a security and sell it immediately after more than 4 times in a rolling 5 day period.

 

[juanmedina]

the $25k threshold is a requirement for your account balance, not just your cash account and I imagine you must have more than that, considering your investment vehicle.
In an IRA, you have a different rule which is Free Riding. This applies to unsettled cash. Basically you can't use unsettled cash (in case of rapid buying and selling) to buy a security and sell it immediately after more than 4 times in a rolling 5 day period.

I can't remember on which account I got a "Pattern day trading notice" and you a right it needs to be $25K equity so I have no idea why I got that notice. Maybe they are trying to keep me from making money lol.

 

[InTheShadows]

So what are you seeing for your weekly return rates? I started off the year at 1.4%, but had to do a lot of management starting in March on a bunch of puts I had on other stocks and it has destroyed my return rate. Mine is currently sitting at 0.13%. I was only selling puts. I recently switched to som BPS after reading how everyone here was having success with them. I stayed away from them because I have heard when they go bad, rolling the long leg is nearly impossible.

 

[mongo]

I can't remember on which account I got a "Pattern day trading notice" and you a right it needs to be $25K equity so I have no idea why I got that notice. Maybe they are trying to keep me from making money lol.

Having >25k doesn't prevent you from being classified as a day trader. That notice/ classification just means you need to have 25k in value to continue trade freely. It's not a ding and is only a restriction if you have <25k.
On the up side, it may give you access to day trade margin which has a higher multiple limit than overnight margin.

I triggered it one memorial week due to there only being 4 trading days, thus combing the two Fridays of trading (same day option plays).

 

[ChefBoyardee]

If you've got a link to that Tastytrade segment, I know that I would find this valuable.

They have a couple but this one is pretty good, except that they miss the point about smaller strikes having better return on capital

 

[JustMe]

So what are you seeing for your weekly return rates? I started off the year at 1.4%, but had to do a lot of management starting in March on a bunch of puts I had on other stocks and it has destroyed my return rate. Mine is currently sitting at 0.13%. I was only selling puts. I recently switched to som BPS after reading how everyone here was having success with them. I stayed away from them because I have heard when they go bad, rolling the long leg is nearly impossible.

I’ve made 1.05% return M-Th this week day trading covered calls. It remains to be seen how viable this is over the long term.

I will probably go back to selling weekly/monthly covered calls after the share price appreciates and IV recovers.

 

[AquaY]

Unexpectedly nervy yesterday. Odds of a downdraft today seem higher than having to roll, but will have to monitor until mid-afternoon. Thinking I want to be fully closed out of CC through Monday and possibly all next week, but a reason to dip back in always seems to appear.

I got 755 CCs expiring today but am planning on staying away from selling calls for next week due to too much speculation regarding AI day, splits, etc.
Don't want to leave money on the table because i felt the need to trade

 

[jeewee3000]

Are we closing below $720 or $710 today?

I got some -710c so I'd like to know

 

[dl003]

The ONE WEEK I decided to be bold.

 

[jeewee3000]

The ONE WEEK that I decided to be bold.

Same here.

 

[PastorDave]

Are we closing below $720 or $710 today?

I got some -710c so I'd like to know

Max pain is 705 this morning, and the "crossover point" looks to be 712.5 (open interest is the 5th and 11th columns, rightmost column is calls - puts OI):

My *guess* is below 715.

 

[JustMe]

It’s going to be an interesting day.

good luck, everyone

 

[juanmedina]

The ONE WEEK that I decided to be bold.

That's why I am never bold . I missed the nice pop couldn't get my order in fast enough.

 

[PastorDave]

STO 15x 730c $3ish.
STO 1x 715c $10ish.

We'll see how this goes.

 

[Drezil]

just closed my -730c .. for 0.02 profit or so .. they were already at 2$ loss today .. i don't trust the MM with volume ~100k/min ..

 

[phantasms]

So not cool Chase. So not cool.

 

[jeewee3000]

So not cool Chase. So not cool.

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Lol, last day is the day with highest volume on most options.

 

[UltradoomY]

So not cool Chase. So not cool.

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Wow, I would be switching brokers immediately if that was policy.
Definitely not cool

 

[MrMoo]

STO 15x 730c $3ish.
STO 1x 715c $10ish.

We'll see how this goes.

Damn STO 715C is ballsy. I guess you don't mind just selling the stock.

 

[PastorDave]

So not cool Chase. So not cool.

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TDA accepts orders until 3:15 on zero day options, FYI. At least they do for TSLA. (yes, I've tried to open positions at 3:30pm on a Friday, lol).