Wiki Selling TSLA Options - Be the House

[Max Plaid]

I was looking ATM through 130 for 7/12, 19, and 26. 53% isn't terrible, but the 65% I saw for this week was more exciting.

Guess it suggests that the dip is a short event.

Noooo, you said you got assigned, but re-reading your previous post that's probably not an early assign, rather some -p that finished ITM on Friday

I still have 50x -p125, which seemed a good deal last week, I'm planning to roll the same strike as long as it pays something and just wait it out -> will need to take care on the extrinsic on those, but IV this week is quite high

 

[thenewguy1979]

So TSLA an AI Company or Car Company? I'm confused now.

 

[Knightshade]

FWIW closed these at ~67% profit in 90 minutes- good enough.

The -200ccs are still open as they're only just now at 50% so gonna let those bleed a bit more.

Just to wrap this up, the -200ccs hit the ~67% BTC I'd put in this morning a few minutes ago so they're closed too.

I'll probably resell again if we pop again in the morning.

 

[Jim Holder]

So TSLA an AI Company or Car Company? I'm confused now.

View attachment 1059402

View attachment 1059403

We get punished on all sides. Nothing to see here

 

[Patrick66]

Noooo, you said you got assigned, but re-reading your previous post that's probably not an early assign, rather some -p that finished ITM on Friday

I still have 50x -p125, which seemed a good deal last week, I'm planning to roll the same strike as long as it pays something and just wait it out -> will need to take care on the extrinsic on those, but IV this week is quite high

I am not sweating assignment; to me this looks like volatility for volatility's sake. Sure you get profit taking amplifying things, but I still want to acquire.

I sold some defensive calls to address my 110 -P for the next two weeks, but I expect this to be short lived.

 

[Patrick66]

The investment firm lowered its forecast for Q2 to 420,000 units from 471,000 units. The latest projection lags behind the Visible Alpha consensus of 445,000 units and pegs deliveries down 10% from a year earlier and up 9% from Q1.

Likely still an optimistic number. The "disconnected" factor will be interesting to watch though.

 

[Jim Holder]

The data based on GEX indicates market is positioned for $200 this week. But like @dl003 often says the best way to get a real bull run is when it's not talked about and less eyes are on it. This also means that with all the chatter around the web and on socials saying TSLA is bullish this week, you may be right and it'll just pop and chop.

Yup...true again.

 

[Jim Holder]

EW two paths still in play:
For TSLA to head for the upper target (~$240's) it needs to make a sustained break above the April high ($198) which will confirm that the Circle B wave completed with the June low. Until then, that Circle B can still be in progress and TSLA can potentially head down to the wave C of Circle B (low $160's).

 

[DaBooster]

my vacation "set it and forget it" plan is done

8/16 SMCI enhanced call ratio spread

+c840 x1
-c870 x2
-c900 x1

net credit 8,172 per contract (guaranteed 8,006-11,172 depending on close)

nothing naked, no loss since backed by stock (LEAPS is better but i don't know how to do that)

View attachment 1059308

NOT ADVICE, DON'T COPY - this setup is ideal for bearish summer (everything expires and i keep stock for round 2); profit is capped at 8006 if bullish summer

Anyone here with options prowess able to layout a scenario where a Poor man's CC could be utilized instead of actual Shares.

My limited understanding says eg:
Buy LEAP option say June 2024 820C at a cost of $24,710 instead of shares for closing price of $82,328

Sell a 06-28 CC ATM -C825 to receive $3,000 credit 12.14% ROI


Ok..... SP closes below $825 on Friday all peaches. I keep the premium & resell next week.

SP closes over 825 & contract gets assigned. I have to deliver 100 shares @ 820


What did i overlook?

 

[Yoona]

Anyone here with options prowess able to layout a scenario where a Poor man's CC could be utilized instead of actual Shares.

My limited understanding says eg:
Buy LEAP option say June 2024 820C at a cost of $24,710 instead of shares for closing price of $82,328

Sell a 06-28 CC ATM -C825 to receive $3,000 credit 12.14% ROI


Ok..... SP closes below $825 on Friday all peaches. I keep the premium & resell next week.

SP closes over 825 & contract gets assigned. I have to deliver 100 shares @ 820


What did i overlook?

i agree, but i don't understand leaps

delivery of 100 shares is automatic if i have stock (ie called away)

if leaps, does the broker close out the leaps or does the broker use my cash to buy stock?

if i have multiple leaps, how does the broker know which one to close?

what is the buying power and margin of leaps?

confused!!!

 

[Jim Holder]

@tivoboy: Confirmed, FSD xfr valid through August 31st, stackable with all existing incentives.

https://twitter.com/x/status/1805402122369777698

 

[Jim Holder]

https://twitter.com/x/status/1805424072706375952

 

[Jim Holder]

Can we crowd-fund a decent stage manager for Tesla’s 8/8 event? If 8/8 is anything like the Cybertruck unveiling…look out below.

 

[Patrick66]

If 8/8 is anything like the Cybertruck unveiling…look out below.

In a good way or bad?

Maybe I am missing something, but I struggle with how the RT will be transformative without equal progress on FSD. I would think a demo of FSD13 with internal testing of over 1 million miles completed without any disengagements would do more for the stock than showing a mockup of an RT.

 

[mrmage]

Anyone here with options prowess able to layout a scenario where a Poor man's CC could be utilized instead of actual Shares.

My limited understanding says eg:
Buy LEAP option say June 2024 820C at a cost of $24,710 instead of shares for closing price of $82,328

Sell a 06-28 CC ATM -C825 to receive $3,000 credit 12.14% ROI


Ok..... SP closes below $825 on Friday all peaches. I keep the premium & resell next week.

SP closes over 825 & contract gets assigned. I have to deliver 100 shares @ 820


What did i overlook?

I assume you meant LEAP for June 2025 820c, rather than 2024. I don't think you overlooked anything from a theoretical perspective, but there's some practical aspects to consider:

- If the SP closes over 825, do you have the funds to pay for the 100 shares after closing the long leg? Or is this handled by the broker? They should be able to answer this.

- If there's an early assignment, same question as above.

i agree, but i don't understand leaps

delivery of 100 shares is automatic if i have stock (ie called away)

if leaps, does the broker close out the leaps or does the broker use my cash to buy stock?

if i have multiple leaps, how does the broker know which one to close?

what is the buying power and margin of leaps?

confused!!!

I've seen you ask something similar, but I don't understand the question. LEAPs are like any other put/call option, just longer expiration dates. The broker should perform the same action as with normal options upon expiration. Worth checking with them though.

Should be no difference between buying power and margin for LEAPs and options, since they're the same thing.

 

[chillerjt]

https://twitter.com/x/status/1805483907984638196

17.5k. Pretty strong

 

[Max Plaid]

Anyone here with options prowess able to layout a scenario where a Poor man's CC could be utilized instead of actual Shares.

My limited understanding says eg:
Buy LEAP option say June 2024 820C at a cost of $24,710 instead of shares for closing price of $82,328

Sell a 06-28 CC ATM -C825 to receive $3,000 credit 12.14% ROI


Ok..... SP closes below $825 on Friday all peaches. I keep the premium & resell next week.

SP closes over 825 & contract gets assigned. I have to deliver 100 shares @ 820


What did i overlook?

The "only" problem with this is the Delta on the weekly strike is much higher than that of the LEAP, so if you were to make this trade and SMCI rebounded to $900 you'd be -$75 on the weeklies, but maybe +$30 on the LEAPS, if you had bought shares instead the the Delta would be 1 so the loss would be covered, but not with LEAPS

Also, you have to question selling -c825's while NVDA and SMCI are having a bit of a correction, a better strategy would be to buy the LEAPS now, then wait for a recovery to $900 before selling the weekly calls

 

[Max Plaid]

As normal for this stage in the quarter, China numbers picked up, still lagging on 2023, but nicely above Q1... question is whether the better CN numbers will compensate the worse EU numbers and whether US/row will be enough to get to the new whisper consensus of 420k

https://twitter.com/x/status/1805488942810018128

 

[Max Plaid]

i agree, but i don't understand leaps

delivery of 100 shares is automatic if i have stock (ie called away)

if leaps, does the broker close out the leaps or does the broker use my cash to buy stock?

if i have multiple leaps, how does the broker know which one to close?

what is the buying power and margin of leaps?

confused!!!

Don't know how it works with your broker, but with mine there's no link between the long LEAPS and the short weeklies. For sure any long calls do limit margin exposure, but in the case of call assignment there's no selling of LEAPS. First any shares on the account would be taken, then any short-fall in shares would result in an automatic buy at market order for the missing shares, which would then be sold at the strike price, hence a cash reduction in essence

If there's wouldn't be enough cash on the account to buy the shares, then I'd get 5 days to rectify - essentially a margin call

 

[Yoona]

Don't know how it works with your broker, but with mine there's no link between the long LEAPS and the short weeklies. For sure any long calls do limit margin exposure, but in the case of call assignment there's no selling of LEAPS. First any shares not he account would be taken, then any short-fall in shares would result in an automatic buy at market orders for the missing shares, which would then be sold at the strike price, hence a cash reduction in essence

If there's wouldn't be enough cash on the account to buy the shares, then I'd get 5 days to rectify - essentially a margin call

BINGO. This is EXACTLY what i needed to know. THANK YOU.

(also, buy leaps at dip; shares give higher buying power)

essentially, leaps is just a long-dated +c with higher delta to mimic shares

from what i know now, leaps is a profit multiplier but not for newbies

staying away!

THANK YOU AGAIN.