Wiki Selling TSLA Options - Be the House

[PastorDave]

My trades this morning (all for this week):
STO 715/735/770/790 IC @ $4.11
STO 750p/730p BPS @ $3.91
STO 760c @ $7.24
STO 765c/785c VCS @ $2.54, completing an IC from last week. Was too early on this one, but I think we're likely to end the week close to 765 (I hope, lol).

Closed various BPS at 80% profit or so. Closed my ITM 740p/750p spread way too early, but for a 100% profit, so hard to complain about that.

 

[bkp_duke]

Anyone know what is driving the SP today? No complaints, just been a while since I've seen it this bullish out of the gate.

 

[Cherry Wine]

Anyone know what is driving the SP today? No complaints, just been a while since I've seen it this bullish out of the gate.

Shanghai is buzzing with activity, the German government is supposedly committing 1B euros to the Berlin battery factory, and a billionaire pledged over the weekend to buy 1 million shares of TSLA on Twitter. Maybe we’re seeing his buys? Kinda weird to tip his hand, but…

 

[stealthyc]

I legged into an IC by selling -790/890 call spreads.

 

[AquaY]

Even though the SP was up at the open it seemed that selling Puts were a better trade than selling calls.

When the SP was up around $15 I STO 40X BPS 550/700 for Friday at a $3 credit.
Now that's trading at $1.73

 

[PastorDave]

So @PastorDave & @ammulder , if we expect a SP drop right as September 2023 LEAPS appear on the option chain, and with volatility being relatively low, it might be a good buying opportunity for the simpletons among us who just buy and hold leaps...?

Much thanks for discussing these things that I'd never notice myself.

According to @FrankSG LEAPs are not a great deal right now if you're just looking to buy and hold? Correct me if I'm wrong someone, and I'd encourage you to read his blog posts on the topic. My opinion is that LEAPs are a great deal if you think TSLA is about to 2x over the next year or so. I think that's 100% a possibility, even likely. I think the market will start pricing in FSD and FOMO + general market exuberance (and possible melt up) will drive us to 1200 or so before the end of the year. Not-advice, but you can see my opinion reflected in my trades, which are biased towards puts and more conservative with selling calls at the moment (waiting until Monday or Tuesday, selling past what I think are resistances, etc.)

 

[FS_FRA]

STO 9/10 790cc @ $1.64 - can't pay attention to things this week, so went far into what I feel is safe territory.

 

[corduroy]

Even though the SP was up at the open it seemed that selling Puts were a better trade than selling calls.

When the SP was up around $15 I STO 40X BPS 550/700 for Friday at a $3 credit.
Now that's trading at $1.73

I did similar, STO 10x 600/700 and got lucky to sell mine in the first minute, now they are up 52%!

 

[ammulder]

So @PastorDave & @ammulder , if we expect a SP drop right as September 2023 LEAPS appear on the option chain, and with volatility being relatively low, it might be a good buying opportunity for the simpletons among us who just buy and hold leaps...?

Much thanks for discussing these things that I'd never notice myself.

Uhh, wait, what are you asking me for?!?

After the rocket up on open today, I'm less sure of anything. I don't understand why today's news was any different than the last few months' of news... Tesla is doing way better than legacy auto, but that's been the case for quite a while... there's still crash-FUD coming out periodically... the US government is still too union-happy to support Tesla much... I have no idea what's going on with the stock. On the face of it, I tend to agree that Berlin and Austin coming online should move the needle more than a 10-20% increase in quarterly numbers. I was thinking FSD wide release and initial Austin production might give a boost in a month or two, but neither of those has happened yet... so...?

If we fall back toward max pain later in the week, then yeah, I could see IV staying low and a further dip late next week. If today's rise is sustained, though, then IV presumably won't stay low and I don't see why the stock price should fall again next week. But if I can't explain this week's behavior, I wouldn't trust me to predict next week's...

 

[bkp_duke]

Opened a 770/800 BCS for $3.46/call expiring this Friday.

Will keep an eye out for a drop to open the BPS side of the IC.


Also sold some "crap calls" in a retirement account. 800 9/10 covered calls.

 

[Buckminster]

Underwater on $735cc. I will roll to 750s next week at a loss if the SP dips a bit. Unless anyone has any better ideas?

 

[ammulder]

Underwater on $735cc. I will roll to 750s next week at a loss if the SP dips a bit. Unless anyone has any better ideas?

It's not yet a given that we won't see 735 again this week. After that mid-morning peak, we seem to be sliding back down again. If you thought there were more peaks to come this week, you could buy back on a dip, wait a bit, and re-sell a higher strike on a future peak. If you believe in max pain, you could hold tight and see what late Thursday/early Friday brings. There's always the roll, but guaranteeing yourself a loss may not be as attractive as holding out for the possibility of squeaking out a profit.

 

[CHGolferJim]

Set a GTC limit order on Friday to sell 091721C765 at $9 -- closed Friday at $5.85 ($733) and hit a peak of $14.90 before 10AM today. Left some on the table by automating this, but can't say I anticipated a 100% move over the weekend. Now I have to start watching for a roll already

 

[Tslynk67]

Underwater on $735cc. I will roll to 750s next week at a loss if the SP dips a bit. Unless anyone has any better ideas?

Wait and see, lots can happen before close on Friday... that being said, once the premium is the same as the delta between the strike and the SP, no point waiting any more, so keep your eye on that

 

[EnzoXYZ]

Got few 770cc 790cc and 800cc for this week. Hoping the 750 wall holds.

 

[Buckminster]

Wait and see, lots can happen before close on Friday... that being said, once the premium is the same as the delta between the strike and the SP, no point waiting any more, so keep your eye on that

Can you expand on that - are you referring to my current position or the new one?

Delta (not greek delta) on current position is 752(SP)-735(strike)=17 versus current premium of 20. So I roll when the premium comes down to 17?

 

[ChefBoyardee]

I don't usually do Iron Condors but seems like the right setup for it, just sold some 690/700/800/810 for next week. 19% RoC and nice whole numbers

 

[Buckminster]

I don't usually do Iron Condors but seems like the right setup for it, just sold some 690/700/800/810 for next week. 19% RoC and nice whole numbers

Your wings are so cute.

 

[dc_h]

I bought back a long dated Sept 2022 sold call at ~50% profit. I think I sold it last year before reading this thread and managing sales better. I will sell at the money calls for the next few weeks and sell puts if called and should get my BTC investment back in 6-8 weeks. Long term, this gives me one more weekly contract to sell. I'll switch to my OTM covered calls, or maybe add a Lycanthrope CC to my weekly routine and use those funds to buy back my 2023 calls. I have 7 other June 23 CC's and would like to buy them back too, or roll up as new dates open up.
This weeks trades and I'm even with last week. Trying to be more disciplined, stay OTM, but have at least 1 or 2 contracts close to the money. Lot of bullish news, but hopefully it will just lead to a melt up we can all ride to 3000 in 2025.

• 1 755 CC
• 1 765 CC
• 4 770 CC
• 4 785 CC
• 4 790 CC
• 4 710-660 BPS
• 2 700-650 BPS
• BTC 1000 Sept 22

I expect a drop the next couple of days and will roll my 700-650 up to 710-660 or 720-670 for credit. I usually roll down my OTM CC's once max pain is more or less locked in on Thursday. If we hit 745, I'll roll the put spreads up and be done until Thursday.

 

[adiggs]

Wait and see, lots can happen before close on Friday... that being said, once the premium is the same as the delta between the strike and the SP, no point waiting any more, so keep your eye on that

I'm not following you here

More words please?