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Wiki Selling TSLA Options - Be the House

Lycanthrope

S3XY old dude
Supporting Member
Nov 15, 2013
10,071
79,351
At home
OK, I dipped my toes into the shark-infested BPS waters today with 50x +680/-715 for net +$2, seems to work

Still have 47x p740's that I sold last week, they're looking a bit healthier than yesterday

Didn't yet sell any calls for this week, I don't trust the upside right now and the premiums weren't attractive enough, wait and see...
 

UltradoomY

Supporting Member
Supporting Member
Mar 13, 2020
351
1,676
Tampa, FL
Closed the put side of my 09/17 Condor this morning when we were at $750 for $0.20 each 98% profit - closed the call side yesterday at 95% profit.

Now that I am naked for this week -looking to open my next trade for 10/01 expiration.
-$690 / +$650
-$820 / + $860
$5.80 each - waiting on a fill.

Also closed the call side of my 09/24 Condor yesterday (same time as the 09/17) for 90%
Still have the put side at $695/$675 and letting it burn off.

Really enjoying these 2 week condors, low overall max loss vs. premium gained and I only need to do one trade per week to hit my goals.
 

juanmedina

Active Member
Mar 31, 2016
2,378
6,804
SC
Closed the put side of my 09/17 Condor this morning when we were at $750 for $0.20 each 98% profit - closed the call side yesterday at 95% profit.

Now that I am naked for this week -looking to open my next trade for 10/01 expiration.
-$690 / +$650
-$820 / + $860
$5.80 each - waiting on a fill.

Also closed the call side of my 09/24 Condor yesterday (same time as the 09/17) for 90%
Still have the put side at $695/$675 and letting it burn off.

Really enjoying these 2 week condors, low overall max loss vs. premium gained and I only need to do one trade per week to hit my goals.

I wonder if we will get an IV bump with the P&D report around the corner.
 
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adiggs

Well-Known Member
Supporting Member
Sep 25, 2012
5,020
15,523
Portland, OR
Yeah I'm transitioning to purely selling, just not quite comfortable with BPS yet. Taking the easy money rather than gambling for a 4x or 8x is so obviously the way to go.
Whatever you do, it also needs to work for you from a time, energy, knowledge, and emotional point of view. I discovered for myself, as a for instance, that actually turning the wheel regularly didn't work for me. The cycle from cash into shares (put assignment) was fine. But shares into cash was hard for me - I was constantly worrying about whether I could get assigned on the puts to get back into shares, before the shares took off.

So I took that one test position through the wheel, made decent money as it turned out, and haven't done it again. I still consider the wheel to be a backup to the backups in my management strategies, but I hope to never use it.


Leading to the idea - take a small position out for a test drive. Something that helped me with BPS was to use a very W I D E spread size. For this purpose I'm partial to a $200 spread size. Something like a 500/700 put spread (illustrating an idea - not a specific trade :D). You'll discover that it behaves almost exactly like a cash or margin secured put and to the degree you already have experience with those, you'll be able to start transferring your knowledge and experience with short puts to the BPS.

I personally am mostly doing $100 spread sizes - that keeps me from going too wild on the leverage as I tend to use all of the capital I'm devoting to this purpose. I.e I'd be selling 2x as many on a $50 spread size, or 10x as many on a $10 spread size. Keep control of my own tendency to get too crazy and also keep my emotional keel when things go badly.
 

Lycanthrope

S3XY old dude
Supporting Member
Nov 15, 2013
10,071
79,351
At home
Closed my collection of 720 strike BPS for this week (2/3rds profit), and opened 770lccs for this week - around 1.25 credit. I think the share price is going to get sucked down by the strong gravitational pull that is max pain on a quarterly expiration.
Decent enough profits, for sure, but I don't see much incentive for the Hedgies to bring it down from here, certainly not to $720 with the big put-wall then coming into play

If I were a Hedgie I'd be targetting $745
1631637060728.png
 

deerfield

Member
Jun 23, 2016
52
149
MA
STO 9/17 CS -770/820 @2.95
BTC @1.10

STO 9/17 CS -780/830 @1.3
BTC @.37

I figured this is good enough for a few hours this morning. If it does run up again, I'll re-enter these. I did the same with puts yesterday. The taking profit at 25% discussion got me thinking. Maybe this is the way to go and rather than wait till Friday to start managing? Just sell and take profit along the way? I'll see how this plays out this week.
 

vikings123

Supporting Member
Supporting Member
May 27, 2019
1,139
8,586
MN
Interesting OTM puts for this week's expiry up 25% in the last few minutes, despite the SP rising...

Didn't this also happen last week just prior to the Friday/Monday selloff?

I believe this is exactly what happened last week. There was a huge swing in prices of calls/puts. Even today with SP at 745, the 725 09/17 strike put is 4.50 while the 765 09/17 strike call is 1.50.

Needless to say I think the sentiment is very bearish right now, Markets are trying to tell us something.
 

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