Wiki Selling TSLA Options - Be the House

[CHGolferJim]

• A 24May$175 buy-write 8DTE assigned on Friday for a gain of $4.92 ($174.11 purchase + $4.03 premium).
• Shares were repurchased today at $175.93 + sto 7Jun$180 at $4.00 = gain of $8.07 if b-w assigns at $180.
• Limit orders in to sto:
  • 15Nov$225 at $12
  • 7Jun$187.50 at $2 (b-w $187.11)
• Hope to roll 16Aug$180 contracts before 6/13 to combination of
  • 10-11 DTE 13%OTM
  • buy-writes
  • 15Nov$225

 

[Patrick66]

Really? Happy to buy at $1100? why?

I feel it is justified in the fundamentals. I have a 6-12 month horizon on NVDA right now; I wouldn't play it if focused solely on 7-30 DTE options. Blackwell should be addative to revenue and profit and not cannibalizing-- the market is significantly under-supplied in the GPUs currently as more focused ML projects (rather than general GPT) take hold. I am playing the "sell the shovels" game, and not really a believer in general GPT, but I recognize huge opportunities in very targeted solutions.

My strategy, FWIW, is to sell $30-50 OTM puts every week, laddering dates 14-60 DTE. When there is enough volatility I go further OTM. I keep about 21 contracts open at a time in lots of 3, covered with cash and margin. I ultimately am looking to add up to 900 more shares, and I periodically sell CCs when there is a good opportunity. I took a small hit in the drop that @thenewguy1979 mentioned in April, but I am diversified enough in time that I can ride out momentum like that.

 

[Jim Holder]

They forgot about us here at TMC!

 

[dl003]

If smart money is buying at 1K, are they that smart?

or what is their intent? Mark large contracts on tape, for the world to see, create fomo and exit unnoticed?
dark pools for activities where they want no one to see?

NVDA has a forward PE of 46 at 1140. Its EPS has grown 700% YOY
TSLA has a forward PE of 70 at 176. EPS has decreased YOY.
So who's smarter? Big money buying NVDA at 1140 or us holding TSLA at 176?

 

[Jim Holder]

NVDA has a forward PE of 46 at 1140. Its EPS has grown 700% YOY
TSLA has a forward PE of 70 at 176. EPS has decreased YOY.
So who's smarter? Big money buying NVDA at 1140 or us holding TSLA at 176?

Why ARE we holding TSLA indeed?

 

[Jim Holder]

https://twitter.com/x/status/1795463012381245483

 

[Jim Holder]

TSLA trading below last week’s high raises probability that it’s forming a wider flat, heading to 61.8% fib @$159.24 (lines up with @dl003’s prediction)

 

[Discoducky]

On NVDA, I see room for 1200-1250, but it really feels overbought right now. Sold some -P1100 today for 6/14. Happy to acquire, happy for them to expire.

Giving folks a perspective on NVDA

From a tech PM perspective, there is simply NO competition *AND* EVERY.SINGLE.TOP.TECH company knows they have to buy as a much as they can or they will lose the race to AGI.

From an investors perspective, last quarter was yet another blowout and these companies MUST have Blackwell so imagine what is going to happen to prices of Blackwell and imagine next quarters earnings? SH$T is going to get even crazier next earnings.

 

[Yoona]

If smart money is buying at 1K, are they that smart?

or what is their intent? Mark large contracts on tape, for the world to see, create fomo and exit unnoticed?
dark pools for activities where they want no one to see?

pay attention to volume... there is no exhaustion yet in all timeframes

BUT rsi suggests sideways coming up

 

[Jim Holder]

https://twitter.com/x/status/1795636894728151179

 

[Jim Holder]

​

Judge assured that Tesla won't contest Musk pay ruling outside Delaware​

May 28, 2024 6:58 PM EDT

DELAWARE, May 28 (Reuters) - The Delaware judge who voided Elon Musk's record Tesla (TSLA.O) pay package told the parties in the case that she felt assured by the electric vehicle maker that it would not use an upcoming shareholder vote to attack her ruling.

WHY IT’S IMPORTANT​

The shareholder legal team who sued over Musk's $56 billion pay package had asked Chancellor Kathaleen McCormick for orders to prevent their case from being undone in a Texas court.

The company's shareholders vote next month to "ratify" the pay package that McCormick voided and to reincorporate Tesla in Texas.

CONTEXT​

The legal team for the shareholder said in a court filing in April that Tesla and Musk might attempt to undo McCormick's ruling in another jurisdiction, like Texas.
Tesla called that "rank speculation" in court papers and said Delaware would retain jurisdiction over the pay dispute, comments that McCormick took as an assurance that the company would not attempt to work around her previous ruling.

KEY QUOTE​

"If I have interpreted the defendants’ position incorrectly, then defense counsel - as officers of the court - are duty-bound to correct it. In the meantime, the defendants’ statements give me great comfort," McCormick said in her seven-page letter.

WHAT’S NEXT​

Tesla shareholders vote on June 13 to decide if they still want Musk's pay package and to reincorporate in Texas, where it has its headquarters, from Delaware, where the majority of large publicly traded companies have their legal home.

McCormick must decide if the shareholder's legal team should get the $6 billion they requested from Tesla as a legal fee before Musk and Tesla can appeal. She has scheduled a hearing for July 8 on the legal fee.

THE RESPONSE​

Greg Varallo, an attorney for shareholder Richard Tornetta, declined to comment.

Attorneys for the company did not immediately respond to a request for comment.


Reporting by Peter Henderson; Editing by Stephen Coates

 

[Knightshade]

I'm not sure under what legal theory Tesla even could try and overturn a state chancery court decision in their state of incorporation by going to another state.

Even if they move to Texas it doesn't retroactively change what happened when they were incorporated in Delaware.... If you lose a civil lawsuit in state court in one state you don't get to avoid it by moving to another state.

I'm also unclear under what legal theory the legal team for the sharehold is requesting the DELAWARE court issue something to stop them from AVOIDING THE JURISDICTION OF THE DELAWARE COURT.

Like... if you pretend there IS a way to avoid the DE courts jurisdiction in another state then asking the DE court to issue orders about that doesn't help...they can just avoid THAT too the same way.

Really weird all around

 

[MrMoo]

NVDA has a forward PE of 46 at 1140. Its EPS has grown 700% YOY
TSLA has a forward PE of 70 at 176. EPS has decreased YOY.
So who's smarter? Big money buying NVDA at 1140 or us holding TSLA at 176?

Shh you're killing the echo chamber.

On a serious note. I seriously regret not buying more NVDA. I put in 20-25% of my portfolio and now its 45% of my portfolio. Their financials are insane. Imagine 1 Month NVDA FCF = 1 year TSLA FCF. Well you don't need to imagine because that's real. It's entirely possible that if TSLA do not get FSD online that NVDA FCF This year will be higher than TSLA's FCF over the next decade.

 

[mrmage]

Shh you're killing the echo chamber.

On a serious note. I seriously regret not buying more NVDA. I put in 20-25% of my portfolio and now its 45% of my portfolio. Their financials are insane. Imagine 1 Month NVDA FCF = 1 year TSLA FCF. Well you don't need to imagine because that's real. It's entirely possible that if TSLA do not get FSD online that NVDA FCF This year will be higher than TSLA's FCF over the next decade.

I swapped out the last of my TSLA in Jan and moved half my liquid assets to NVDA in Feb, which has turned into 80%. I'm optimistic about the rest of the year, and will remain vested in NVDA in shares, spreads and calls.

On pullbacks, I sell stocks and use proceeds to close short legs. When sp gets high, I add short legs and use the proceeds to buy stock. No complaints for a short time with nvda. Wouldn't mind having more, but it's always easy to say in hindsight.

It's hard to beat the Nvidia model. When Tesla scales their FSD, NVDA wins. Same for projects by goog, meta, msft, amzn, and thousands of other companies, and the build out is nowhere near complete.

Engineering capital that used to be spent on legions of developers has shifted towards AI compute for training. Crazy times.

 

[Max Plaid]

Yeah, the NVDA juggernaut looks unstoppable at the moment, have the markets ever seen anything similar in the past? I know lots of stock pop on hopium, but this seems to be grounded in insane fundamentals that literally popped out of nowhere beginning of last year...

For my side, I have these 5x Jan -p900's, I'm thinking to go aggressive on those and sell some -p1250's, seems a no-brainer from here

 

[Patrick66]

Yeah, the NVDA juggernaut looks unstoppable at the moment, have the markets ever seen anything similar in the past?

AAPL in the days of the iPod, Microsoft before them. Philip Morris in the ~70's, Monsanto in the 80's. All go through cycles, but it is less rare than people make it out to be.

Nvidia has risks for sure, and we are in the middle stage of their current cycle. I doubt we will see 8x growth from here, but we should have a good year almost completely independent of the broader market.

I am trading to buy, so the puts I write I see a 30% chance of being assigned. We have lots of volatility to work with, so selling shorter term gives you plenty of opportunity.

 

[jeewee3000]

Regarding NVDA, friendly reminder that selling puts is best done at low SP.

Not saying NVDA can't keep running for a while, but be prepared for the swing downward (which can be volatile with rallies like this).

In other words: make sure your puts are backed so you don't end up getting margin called.

Personally I'm not yet in NVDA since I don't like to chase rallies. But given the great prospects I might sell some CSP's myself on the next great downturn for the stock.

Just a PSA to avoid hurt. GLTA.

 

[DaBooster]

TSLA Max Pain for 5-31 slipped to 175

 

[mongo]

TSLA Max Pain for 5-31 slipped to 175

It's not 7am yet...
(Or have you found a source that updates earlier?)

 

[DaBooster]

It's not 7am yet...
(Or have you found a source that updates earlier?)

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