No problem selling against calls in my Schwab Roth. Level 2 includes spreads.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
No problem selling against calls in my Schwab Roth. Level 2 includes spreads.
Got lucky this week
Had STO 0903 730cc early on Monday that I was able to BTC in the early afternoon for an 85% profit.. didn't get to see the closing spurt until after 5P
Had STO 0903 730cc early on Monday that I was able to BTC in the early afternoon for an 85% profit.. didn't get to see the closing spurt until after 5P
AquaY
Member
I have several conservative wide spread BPS on for next week.
550/690
560/695
600/700
Also for 9/17 I have a BPS of 560/660
Triple witching expirations make me extra cautious
I;ve held off on the call side by design.
My thoughts are Tuesday will open higher.
I plan to run call #s tomorrow from todays closes just to get a starting point for Tuesday.
I will probably write both CC and spreads perhaps an IC as well or leg into one
If we open down I will add to BPS at tighter spreads
I feel the same way. I’m 43 and believe I have enough to retire plus I have consistent results from options trading this year. I work in IT consulting.
While the money is good, I think the opportunity to spend more time with kids and be able to make more than enough to fund your lifestyle while at the same time growing your retirement accounts is just invaluable, the thought of quitting my job and trading full time is something I’m seriously thinking about. I do worry about TSLA options trading drying up but I think you can focus on investing in other companies.
Once you have the capital it is so much easier to grow your wealth.
sorry for the off topic post but your post pretty much is my current situation.
In any case I closed out my 5X 9/10 750 calls(65% gain) right around the bottom of the MMD. I will be looking to re-enter next week. I left my other trades open.
That last point - the options trading on TSLA drying up - my wife doesn't follow what I'm doing all that closely. She likes the monthly results and keeps wondering how this works so well. We're also still figuring out just how much of the income we can spend and still not worry about setting ourselves up to fall into poverty (it's extreme I know - yet that's how our brains work at least).
And despite that, the issue of the trading using TSLA options was something she spotted and asked about in like minutes of when this was starting to look like more than a fad, or something that couldn't sustain (over a year now and going better now than when i started, despite the massive drop in IV over that year).
The key to me is I need a company I can believe in, and will therefore follow closely as well as invest heavily in. And that company needs to have a hugely active options market. Part of that options market activity has arisen from the huge short sellers with their huge capitalization. The extreme volatility, negative media, and on and on doesn't happen without a committed and well funded opposite view of the company than my own. While I do get pissed at the short sellers, whenever I step back and think about it, I thank them for providing such a well funded and sustained opposition.
Thank you for the kind words, but I hope the Degenerate Gamblers are somewhere else.
And it's STILL all our thread
I'll post my trades as well. Thanks to everyone else who does, I find it really helpful. Some of these were placed earlier this week.
9/10 STO IC 695/715/765/785 @ $2
9/10 STO BPS 705/725 @ $4.7
9/10 STO BPS 740/750 @ $6.65 - this trade is ITM and I'm going to close it early on a pop, probably Tuesday unless it looks like max pain somehow catches up
9/24 STO BPS 660/710 @ $16.40
10/1 STO BPS 665/715 @ $12.50
I'm also looking to open 10/8 BPS on any dips, which I'm expecting the week of 9/17.
I'll open some short calls once I figure out the trading range for next week. Probably around 750, depends on call walls and where we are around noon on Tuesday. I may also open up some additional short calls for 9/17.
My wife did not believe it either but that has mostly to do with the fact that we from a culture that is very conservative. I think people underestimate how much time we have put into learning how to play this game.
I think that’s the tough part; finding a company where you a deep understanding of the business and how it gets manipulated by Wall Street. I don’t think there will be another TSLA. That said I think you can always look for ways to identify undervalued companies or follow some of the principles of Peter Lynch investing…doing grassroots research to identify companies even before Wall Street starts running their numbers and ratings nonsense . Again the key for me is having the capital. It just opens up a lot of opportunities.
Buckminster
Well-Known Member
BTC CC 750 9/10
STO CC 735 9/10 @$8 (now $9.50)
Might sit on my hands the following week.
STO CC 735 9/10 @$8 (now $9.50)
Might sit on my hands the following week.
jeewee3000
Active Member
To add to this, although I do see the humor in calling us degenerate gamblers (we are compared to pure HODLERS), the reason I'm comfortable doing any of these option plays is because it is just as much gambling as holding large amounts of shares of one company.Thank you for the kind words, but I hope the Degenerate Gamblers are somewhere else.
And it's STILL all our thread
Yes, risk and reward are higher with options compared to stock, but even stock is a gamble in the sense that you are literally betting that said company will outcompete its rivals and will keep interest of its clients, stakeholders and shareholders.
Even the old "spread investing" is gambling in that sense IMO, i.e. you put maximum 5% of your money in at least 20 companies. Even better, every 1% of your hard earned cash goes into a different company, netting you with +100 stock positions. Who can honestly keep track of this? No one. This is what the uninformed masses are told and they copy trades by gurus such as Jim Cramer, Adam Jonas, Warren Buffet, Ron Baron, etcetera. But any one of these only discloses their trades/positions AFTER the fact, therefore pumping/defending their position and profiting from mister investing Family Man, who can't figure out why his gains never outpace the indexes.
All investing therefore is gambling in some sense -compared to storing your money in the bank or under your matress.
But true YOLO degenerate gambling is something I don't see in this thread, since the risks are known and calculated (mostly
). Let's save the term degenerates for the WallStreetBets crowd selling hundreds of naked puts or calls, or buying FOTM weekly options with borrowed money.If I were to rename this thread, I'd call it: "$TSLA options trading in practice - the how and why of (y)our trades"
Hmm, nah, doesn't fit on a bumper sticker. Back to the drawing board
.
corduroy
Active Member
That is also one of my big concerns with long term planning. Will this TSLA well run dry one day? I strongly think the answer to that is no. But it's important to think through alternatives.
I believe this information edge we have as passionate Tesla fans gives us a huge edge trading options around it. We have people on this forum flying drones over factories and counting cars on ships for crying out loud! Plus we are happy to accumulate shares because of the conviction we have around the company and it's future.
Could that be transferred to another stock? I'd never find another company that I will have this passion about, but I'm pretty sure I could immerse myself in another company enough to have a similar information edge. It wouldn't be as fun, but the strategies would be the same. In fact, being dispassionate about the underlying company might not be a bad thing, to make more calculated data based decisions.
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jeewee3000
Active Member
Starlink IPO would like to have a word with you.
Can’t wait for the “Which 16 inch telescope did you go with?” sub forum.
InTheShadows
Active Member
The concepts we are learning and practicing here apply to any stock. Though there is more risk because we don’t have thousands of fanboys out there gathering intel for us.
Once we head for our next RSI 90+ (we all know it will happen) then I think I will move a portion to SPY. There will never be a liquidity issue there and it’s a solid mix of companies in that ETF.
If TSLA wasn’t so ripe for an explosion in price for the next 6 months I would have some of my portfolio in SPY. I have considered dabbling with a one contract spread ( or IC) or two with some memes that have higher volitility just to get a better understanding of the mechanics of how this all works.
I’m also very intrigued by the data in the tastytrade video I posted earlier about taking profits early, like at 25% of max to get better win rates and better returns.
Very interesting video. Basically, look for 45 DTE with nice IV (ie better than 50% of the 52-week range so anything 42%+ is ok):Posting this here for some weekend discussion.
Selling big boy iron condors - TastyTrade
They are talking a lot about what we have been talking about the past month or so. Really interesting section on taking profits early too.
Then, open IC with short=15 delta and long=4 strikes away. Close the position at 25% of credit since there is less advantage of holding it through expiration. Profit per day will be higher. If using BTC stop limits then this means one can open ICs sequentially one after another since there is no need of waiting for expirations or 80-99% profit.
To apply the lesson, this looks like Oct15 ICx1 605/625/840/860, credit 8400. BTC limit order at 2100. Margin 6400 for 42 days. I'm gonna open this on Tue as a test (using separate legging in to maximize credit) to see how long it takes to reach 25% profitability. Excellent opportunity to see how theta decay works.
bkp_duke
Well-Known Member
Very interesting video. Basically, look for 45 DTE with nice IV (ie better than 50% of the 52-week range so anything 42%+ is ok):
Then, open IC with short=15 delta and long=4 strikes away. Close the position at 25% of credit since there is less advantage of holding it through expiration. Profit per day will be higher. If using BTC stop limits then this means one can open ICs sequentially one after another since there is no need of waiting for expirations or 80-99% profit.
To apply the lesson, this looks like Oct15 ICx1 605/625/840/860, credit 8400. BTC limit order at 2100. Margin 6400 for 42 days. I'm gonna open this on Tue as a test (using separate legging in to maximize credit) to see how long it takes to reach 25% profitability. Excellent opportunity to see how theta decay works.
This caught my eye as well. The other 2 things that REALLY caught my eye were:
1) how much more profitable it was to take profits at 25% and move on to the next position than holding for even 50% or more (this is hard for me, and I suspect many here, as I want to "see things through to the end")
2) the % win if you employ this strategy (>95% if you look at the numbers in all their examples)
My only concern is that TSLA IV right now is pretty low, that might skew things as this strategy is not tested in that scenario.
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I look forward to hearing about how this experiment goes for you.Very interesting video. Basically, look for 45 DTE with nice IV (ie better than 50% of the 52-week range so anything 42%+ is ok):
Then, open IC with short=15 delta and long=4 strikes away. Close the position at 25% of credit since there is less advantage of holding it through expiration. Profit per day will be higher. If using BTC stop limits then this means one can open ICs sequentially one after another since there is no need of waiting for expirations or 80-99% profit.
To apply the lesson, this looks like Oct15 ICx1 605/625/840/860, credit 8400. BTC limit order at 2100. Margin 6400 for 42 days. I'm gonna open this on Tue as a test (using separate legging in to maximize credit) to see how long it takes to reach 25% profitability. Excellent opportunity to see how theta decay works.
I wonder about the math on the specific example - it looks like a $2k margin ($20 spread size) IC that generates a $8400 credit? If that's true then you should buy an infinite amount of that trade as your best case is $8400 earnings and your worst case is $6400 earnings
Maybe that's $840 earnings?
whoooooooopsies sorry typo, coz my default setting is x20; thx for noticingI look forward to hearing about how this experiment goes for you.
I wonder about the math on the specific example - it looks like a $2k margin ($20 spread size) IC that generates a $8400 credit? If that's true then you should buy an infinite amount of that trade as your best case is $8400 earnings and your worst case is $6400 earnings
Maybe that's $840 earnings?
Oct15 ICx20 605/625/840/860, credit 8400. Margin 32k for 42 days
i should have taken a screenshot earlier, i swear it said 6400 margin
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