Wiki Selling TSLA Options - Be the House

[jeewee3000]

Looking for some ideas to take advantage of the potential golden cross pop next week to open tomorrow right now.

If you have a good deal of cash on hand: sell ATM puts for next week expiry.

If you have little cash: buy ATM or 720 calls for next week expiry.

Both of these should be performed tomorrow on a dip and/or as volume (and IV) is drying up. Then come Monday, take profits within the first 30 minutes.

 

[ReddyLeaf]

Regarding the Golden Cross, looking back to August 1st and December 1st of 2018, those didn’t really predict a huge SP run. There are plenty of other examples as well. 2017 and 2019 had great “predictive” runs, while previous years didn’t. Maybe odd numbered years are better than even.

I’m less interested in the cross (IMHO a backward prediction) and more interested in the future when GF4 and GF5 come online, when GF6 (Indonesian nickel) is announced, and when cybertruck, semi and Megapak sales exceed automotive. Those will be the major long term catalysts to SP growth. I’m still planning to sell weekly puts/calls until I reach my share goal later this year, and then transition to retirement where I will only sell way OTM (probably only $5/month premium) for my modest living expenses. Really looking forward to the SP breaking $1000 again (since I wasn’t invested in TSLA when it happened the first time).

 

[AquaY]

Regarding the Golden Cross, looking back to August 1st and December 1st of 2018, those didn’t really predict a huge SP run. There are plenty of other examples as well. 2017 and 2019 had great “predictive” runs, while previous years didn’t. Maybe odd numbered years are better than even.

I’m less interested in the cross (IMHO a backward prediction) and more interested in the future when GF4 and GF5 come online, when GF6 (Indonesian nickel) is announced, and when cybertruck, semi and Megapak sales exceed automotive. Those will be the major long term catalysts to SP growth. I’m still planning to sell weekly puts/calls until I reach my share goal later this year, and then transition to retirement where I will only sell way OTM (probably only $5/month premium) for my modest living expenses. Really looking forward to the SP breaking $1000 again (since I wasn’t invested in TSLA when it happened the first time).

Personal question and if you don't want to answer I understand.
What is your share goal in TSLA for retirement?
I have 900 shares now and my short term goal is 1000.
Are you planning on selling both OTM ( $5ish /monthly premium) CC and puts too?

Of course you have to count on volatility continuing at similar levels to make that work

 

[Yoona]

Closed my $730C at 60% profit, we've been bouncing around quite a lot so I closed when I was >50% profit. Still have a $720C open in my 401k. I don't mind being assigned and selling $700P after so no big deal.

Is everyone just sitting on their hands before J Powell's thing on Friday?

+p640/-p660/-c730/+c750

I will roll my IC legs separately to next week for juicy credit (think steaks and lobster)

 

[ammulder]

I see max pain still at $690 this morning… wasn’t expecting that. Better sign for those cc700s.

 

[UltradoomY]

would like a “block” of shares but will settle, albeit grudgingly, for 1/2 block

Definition for anyone not familiar - a block is at least 10k shares.....

 

[EnzoXYZ]

Why does it feel like the MMs will pull the rug under us this Friday after Powell speaks? I have that sick feeling share price will be drop under 700 this Friday.

 

[dl003]

Why does it feel like the MMs will pull the rug under us this Friday after Powell speaks? I have that sick feeling share price will be drop under 700 this Friday.

Selling a few 705 calls should get rid of that feeling real quickly.

 

[Buckminster]

I've got almost 7 blocks.......................of Dogecoin.....

 

[jeewee3000]

Anyone ordered McDonalds? 'Cause I'm lovin' it. (the price action)

Closed most cc's for decent profit. Leaving one 700cc that's around 20% green right now just in case tomorrow is also red. If we rally, plenty of stock to sell cc's against to spread out the roll should I need to.

 

[UltradoomY]

Anyone ordered McDonalds? 'Cause I'm lovin' it. (the price action)

Closed most cc's for decent profit. Leaving one 700cc that's around 20% green right now just in case tomorrow is also red. If we rally, plenty of stock to sell cc's against to spread out the roll should I need to.

I closed out the $725/$775 BCS I had for this week this morning for a little over 80% (a little too early..) could have gotten 90%
This action and the Boogie Man speaking tomorrow (FED meeting) means that some juicy BPS are ready to be sold!

 

[ReddyLeaf]

Personal question and if you don't want to answer I understand.
What is your share goal in TSLA for retirement?
I have 900 shares now and my short term goal is 1000.
Are you planning on selling both OTM ( $5ish /monthly premium) CC and puts too?

Of course you have to count on volatility continuing at similar levels to make that work

My goal is a bit higher, though I’m currently living on ~$3000/mo so could probably make it with 1000 shares (I live in a low cost area vs the coasts, but have been contemplating a move and new Plaid purchase). Yes, I plan to continue selling both CCs and CSPs in about a 4:1 ratio (maybe 2:1 in another decade). I like the dynamics of selling the straddle, which releases all the secured cash on put buyback (in case the SP rockets and don’t want to lose the shares).

For example, right now looking for $5 premium a month out (Sept 27th), one could sell -p580s and -c810s get a bit over $5. That’s a pretty wide range, but also assumes both expire worthless. Instead, I would probably bias for an average SP rise, maybe 5%/mo, so maybe target something like p650 ($13.45) and c820s ($4.25). This is about $6.05 weighted average, and allows for rolling at ~80%. Yes, volatility will impact strike choices, especially around events.

 

[corduroy]

Why does it feel like the MMs will pull the rug under us this Friday after Powell speaks? I have that sick feeling share price will be drop under 700 this Friday.

I don't think we've seen the last of our old friend the 600's. I'm placing my bets accordingly (BPS orders ready).

 

[dc_h]

Definition for anyone not familiar - a block is at least 10k shares.....

A stock split would make that a little easier. Sure would make our game more interesting too.

 

[AxlxA]

I don't think we've seen the last of our old friend the 600's. I'm placing my bets accordingly (BPS orders ready).

At what strike is the real q. -$680P for me feels pretty good. But I'd have by max loss if we dip back to $670s

 

[Chenkers]

+p640/-p660/-c730/+c750

I will roll my IC legs separately to next week for juicy credit (think steaks and lobster)

Mine for this week have been +p650/-p670 -c720/+c740 with some stretching the +c to 770. Sold yesterday and today after open with prices ranging from $3.25 to $6. Plenty of steaks, lobster and a bit of caviar to go around.

 

[corduroy]

At what strike is the real q. -$680P for me feels pretty good. But I'd have by max loss if we dip back to $670s

I'm more conservative than most on here. +p/550/-p650 is my order.

 

[ammulder]

Leaving one 700cc that's around 20% green right now just in case tomorrow is also red.

I’m gritting my teeth and holding out hope for my 700 covered call. It’s been going in and out of profitability, but with the premium already in the bank, it doesn’t feel like break even to buy back for minimal profit, it feels like a loss. Curse my brain for being in charge!

I guess we’ll see whether max pain holds.

 

[adiggs]

I’m gritting my teeth and holding out hope for my 700 covered call. It’s been going in and out of profitability, but with the premium already in the bank, it doesn’t feel like break even to buy back for minimal profit, it feels like a loss. Curse my brain for being in charge!

I guess we’ll see whether max pain holds.

One thought to consider - roll or close now depending on what you think will happen next week to avoid a day or 2 of teeth gritting. I know it can feel like a loss but if you're reasonably confident that this is as good as its going to get so you're hoping real hard (HRH) to be wrong, then I suggest that is a good reason to be out.

A related thought - gritting teeth, holding out hope, feel - these are phrases I would associate with emotion being in charge, rather than the brain being in charge.

NOT-ADVICE of course . We all make our own decisions and experience our own consequences.

 

[juanmedina]

wow IV is really low I feel like buying some short term calls. Someone on twitter posted that Robinhood is lowering the margin maintenance requirement for Tesla to 25% I assume other brokerages will do the same.