kid wants the latest new iphone so we're going to the mall after lunch to pick up
i sold the BCS to the Market Manipulators and the Hedgies - they are paying for the shiny new gadget
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
i sold the BCS to the Market Manipulators and the Hedgies - they are paying for the shiny new gadget
Basically the only way to afford an iPhone these days.
Well, somewhat unexpected price action on not so great volume
Closed out 40x $p740's @40c - yes I could let them expire, but I'm expecting a walk-down from the Hedgies still and want to be ready to sell for next week, premiums looking very juicy, it must be said
And yes, still holding the 65x (l)cc750's, plenty of time fo those to go OTM still
If not, a roll with all the extrinsic rinsed out, somewhere towards the close... 765 is free, but as I am looking to sell the shares, I might just keep the cc's at 750...
Gamma squeeze continues…this is in the last 15 minutes. I guess they are going for 770!
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bkp_duke
Well-Known Member
Opened BCS for next week:
60 x 800/825 @ 1.67 premium.
Now to wait patiently for a drop to sell the BPS side.
60 x 800/825 @ 1.67 premium.
Now to wait patiently for a drop to sell the BPS side.
bballshinobi
Member
A close above $762 would appear to clear the decks for $780 at least.
What site are you using for this? Thanks for the info, btw, I'm in some -760c that have me quite nervous, lol.
Cheddar flow, starts at 85$ per month but peanuts compared to the amount of money we are playing with in this thread
InTheShadows
Active Member
Haha. Make that statement anywhere but here and people would think you were insane for not taking that trade. That’s a 3% return in 1 week!! I have a weekly ror column in my spreadsheets and for individual trades I’m usually in the 6-9% territory.
I’m looking at a green leap I might sell to close because the return I have gotten on it is paltry compared to what I could have done with that capital for 2 months. I’ve made two weeks of my average ror on it in 2 months.
Knightshade
Well-Known Member
Curious on folks opinions of this entirely hypothetical situation.
Let's say someone (in a tax-free account so we can ignore that aspect) had converted 800 shares to 32 $600 calls expiring Dec 17 this year during a dip many months ago, expecting the dip to not last nearly this long.
Such that the position is about 28% green presently (with SP at ~765).... but that's still less cash than buying back into 800 shares costs at that price.
But we're entering the last 3 months of the option where time decays gonna get more unpleasant than it already is.
what not advice would you give someone in that position about what to do.
(further assume there's no "fake" margin in this account so spreads aren't available nor any otherwise unengaged cash there)
Let's say someone (in a tax-free account so we can ignore that aspect) had converted 800 shares to 32 $600 calls expiring Dec 17 this year during a dip many months ago, expecting the dip to not last nearly this long.
Such that the position is about 28% green presently (with SP at ~765).... but that's still less cash than buying back into 800 shares costs at that price.
But we're entering the last 3 months of the option where time decays gonna get more unpleasant than it already is.
what not advice would you give someone in that position about what to do.
(further assume there's no "fake" margin in this account so spreads aren't available nor any otherwise unengaged cash there)
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If it were cash, where would you put that money?
If you think Q3 is good, you could hold a little longer.
$19 in time value ($61k total) with .85 delta.
4 options (400 shares) per 100 original shares 3.4 delta versus 1 for stock.
SP / 4 = SP - 600
SP×3 = 2400
SP of 800 is breakeven with zero time value. $36 from now.
IV pickup would also help.
$19 in time value ($61k total) with .85 delta.
4 options (400 shares) per 100 original shares 3.4 delta versus 1 for stock.
SP / 4 = SP - 600
SP×3 = 2400
SP of 800 is breakeven with zero time value. $36 from now.
IV pickup would also help.
Me personally - not advice of course - is I would roll them from December $600's to March 22 $650's and add to it.
The $600's are right now - $185 each x 32 = $592k
March 22 $650's are - $165 = 35 contracts and some change.
So you get more time, a slightly higher strike and a couple more contracts.
Plus run up through Q4 earnings.
Good luck
Edit - you could also go out to June 22 for almost even money at the $650 strike
InTheShadows
Active Member
Haha. Price movement is exciting. Remember when +2% was boring last winter? 
These 10/1 700p are worth about the same as I sold them for 2 days ago when the SP was $25 lower.
Holy Popcorn Batman... If only I had bought yesterday, right... I'm also going to ride it out, why not.
mickificki
Member
Ride 'em like Secretariat!
Ladies and germs, guess what I did today? Yep that's right, sold 5x 10/1 CC 775 strike! I'm batting 1000%! Warming up my rolling fingers...
Well, I decided to close my BPS for ~43% gain. The remaining premium over the next 5 weeks was not worth it relative to how I might be able to deploy the same amount of margin. So I managed to gain back my loss plus more than the original premium I had. Feels good.
Knightshade
Well-Known Member
Good question... part of me would be happy just getting the 800 shares back.... and I do think I'd at least wait for any run through next Friday anticipating delivery #s before I do anything... but I remain bullish on the stock esp with 2 more factories going to production soonish... so I'm sort of temped by the suggestion from....
Throwing both of these into an options calculator it seems both beat "just convert back to 800 shares" just after Jan P&D numbers if SP is >~835.... the Mar options beat it by more with each dollar after by a bit with 35 vs 32 contracts... though the June would let me hold through 22Q1 P&D..... which would be good or bad depending on how well/fast Austin/Berlin are ramping...
Wow! Thought I was safe @ -C770/+C825 for today. Rolled up from 760 yesterday. Decided to roll out to 1001 -c790/+c840 for $3 credit. Rather than taking a chance of it not executing due to the long leg @825 as a spread BTC, I only rolled the short leg and bought another long leg to create the spread for next week. Have another order out now to close the long leg for 0.01.
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