Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Wiki Selling TSLA Options - Be the House

Knightshade

Well-Known Member
Jul 31, 2017
13,152
21,738
NC
I like the look of 9/24 620-720 put spread for $7 and change


Was just looking at that exact thing to sell for next week... showing 6.57/6.85 credit at the moment though- thought about doing a $7 day order to catch the next couple buck SP dip

OTOH maybe makes more sense to wait for tomorrow to see if they get it down to the 740-745 range to sell these?
 
Last edited:

ammulder

3P, X ordered
Supporting Member
Apr 11, 2019
1,283
4,741
Philly area
Was just looking at that exact thing to sell for next week... showing 6.57/6.85 credit at the moment though- thought about doing a $7 day order to catch the next couple buck SP dip

OTOH maybe makes more sense to wait for tomorrow to see if they get it down to the 740-745 range to sell these?

Yeah, there was a delay between my order and my post. :(

I don't know about waiting for tomorrow. It seems reasonably likely that we'll see a dip to 745 at least, but if IV is worse and another day of time value is gone, I'm not sure how the price will compare. Since I was shopping at $30 under the stock price hoping for $4 and found $7, I figured I wouldn't look a gift horse and all that... (I'm still trying to shake the feeling that I did something wrong!) In any case, I'll try my best not to regret it if I see $8 tomorrow. :)
 

AquaY

Supporting Member
Supporting Member
May 30, 2021
427
1,374
Long Island NY
Was just looking at that exact thing to sell for next week... showing 6.57/6.85 credit at the moment though- thought about doing a $7 day order to catch the next couple buck SP dip

OTOH maybe makes more sense to wait for tomorrow to see if they get it down to the 740-745 range to sell these?
I had initially planned on waiting until Friday to enter into more BPS for next week but when I ran numbers this morning it just seemed like a good idea to go for it now.
I still have plenty held in reserve to write more tomorrow if the they look even better.
Not advice ; Maybe consider doing 1/2 today if you're concerned they won't be as attractive tomorrow?
One day closer to expiration and IV could lower tomorrow too
 
  • Like
Reactions: corduroy

Discoducky

P100DL, 2021 M3, 4 CT reservations and counting
Supporting Member
Dec 25, 2011
3,791
7,272
My mountain
I have a few $735 cc in play for this week as well. When are you looking to roll @Discoducky ? Or do you think the sp will be manipulated down? I’m thinking down a bit tomorrow, but not enough to negate a roll.
If it dips into the 730's I'd either close for a tiny profit or roll to next week for more premium at a higher strike. But it looks like that might not happen today or tomorrow. So, I'll hold on unless we see a spike to $760 when I might roll quickly to 9/24 or 10/1 (which I don't like to do; too much risk of another pop). Also, I don't want to mess with anything around the annual shareholder meeting which I think we could see some investor stimulating news.
 

Cherry Wine

Supporting Member
Supporting Member
Oct 4, 2018
2,650
21,192
California
Closed my 9/17 $760/$810 BCS at a meager 10% profit a little bit ago; stock price is too close for comfort. Still looking real good for this week overall, with remaining positions at $720 for puts (rolled from $730), and $780 for calls. Very tempted to open some put positions expiring 9/24 today, but I'm going to wait and see what tomorrow brings.
 

Yoona

NEWBIE Trader
May 3, 2017
495
2,447
Canada
these are my 3 BPS for next week (maxpain 745) opened at assorted DTE; waiting for sp spike up to IC them, perhaps -c790 delta 09
converted all my 9/24 BPS to IC 720-790

1631816546644.png
 

EVCollies

Supporting Member
Supporting Member
Apr 3, 2016
394
1,068
Blue Marble
Just STO 9/17 750 cc @ 7.55, I can't imagine MMs won't push SP down a bit on Friday. Will place GTC orders hoping to catch any dip tomorrow.
 
Last edited:

Lycanthrope

S3XY old dude
Supporting Member
Nov 15, 2013
10,048
79,198
At home
Hola gang - closed out my 47x p740's for $1 earlier, 90% profits

Still have 55x cc/lcc765 open for tomorrow, had a 0.45 sell limit set, but closest it got was 0.52, tomorrow we will see, close or roll, don't care too much

Now, with my margin freed-up from those puts, I decided to go a bit bigger with the BPS, went with the same strikes as this week +p680/-p715, which gave a decent net $3 = 50% more than this week

Now, only problem, if you call it a problem, is that fat-fingered one of the buy orders so ended up with more than I had intended, I wanted 300x, I have 411x - yeah, I know, should open 9 more... anyway, a bit more leveraged than I would like, but there you go

So, a quick question to the experienced spread-meisters, how do you deal with these if the SP starts heading south? just close the whole lot out before they go ITM and open again the next week, i.e., just a simple roll?

I realise this has been discussed a few weeks back, but I wasn't really into it them, of someone could point me in the right direction. Cheers!
 

UltradoomY

Supporting Member
Supporting Member
Mar 13, 2020
343
1,643
Tampa, FL
Hola gang - closed out my 47x p740's for $1 earlier, 90% profits

Still have 55x cc/lcc765 open for tomorrow, had a 0.45 sell limit set, but closest it got was 0.52, tomorrow we will see, close or roll, don't care too much

Now, with my margin freed-up from those puts, I decided to go a bit bigger with the BPS, went with the same strikes as this week +p680/-p715, which gave a decent net $3 = 50% more than this week

Now, only problem, if you call it a problem, is that fat-fingered one of the buy orders so ended up with more than I had intended, I wanted 300x, I have 411x - yeah, I know, should open 9 more... anyway, a bit more leveraged than I would like, but there you go

So, a quick question to the experienced spread-meisters, how do you deal with these if the SP starts heading south? just close the whole lot out before they go ITM and open again the next week, i.e., just a simple roll?

I realise this has been discussed a few weeks back, but I wasn't really into it them, of someone could point me in the right direction. Cheers!
If you want to roll for a credit - do it before the mid point of the spread - so in your example that would be $698
After that you will be paying to roll.
Or you can separate it into a sold put and a bought put and just roll the sold leg to next week and keep the profitable bought put.
or a million other things but those are the easy 2 to think through.

Also - yes, definitely sell 9 more!
 

AquaY

Supporting Member
Supporting Member
May 30, 2021
427
1,374
Long Island NY
Hola gang - closed out my 47x p740's for $1 earlier, 90% profits

Still have 55x cc/lcc765 open for tomorrow, had a 0.45 sell limit set, but closest it got was 0.52, tomorrow we will see, close or roll, don't care too much

Now, with my margin freed-up from those puts, I decided to go a bit bigger with the BPS,
When I read that I immediately said to myself "Did he make his own Put Wall?" LOL

Kidding aside That's a fairly conservative trade. Although a little wider spread would have afforded more wiggle room but then you'd be even more leveraged. than you want.
@UltradoomY I think is right, if you find you may need to roll do it before the mid point of the spread.
If you have extra buying power available you can widen the spread then if you need to roll it, which will make your credit larger and easier to manage as far as future rolls if necessary. You may be able to roll it at a lower strike while maintaining a credit that way too.
I do think instead of buying 9 more I'd consider selling the 11 even if it is at a small loss.
You are already in more leverage than you like . Why add to it. Even though it's not a lot.
Either way, I'd do one or the other.

I'm curious what others think.
Good Luck. I think you will do well.


If you want to roll for a credit - do it before the mid point of the spread - so in your example that would be $698
After that you will be paying to roll.
Or you can separate it into a sold put and a bought put and just roll the sold leg to next week and keep the profitable bought put.
or a million other things but those are the easy 2 to think through.

Also - yes, definitely sell 9 more!
Or buy 11 back since he's more leveraged than he wants to be. 😉
 

corduroy

Member
Jan 30, 2018
814
5,950
Earth, for now (sigh)
Already at 35% profit ... to close or not close? that is the question 🤣

oh an this is so depressing:


View attachment 710200

I'm wondering if this is going to be the new normal for IV. If it's temporary, then it's a great time to buy LEAPs. But maybe we are range bound now that TSLA is an S&P stock.

According to MC, it is trending even lower:
TSLA implied volatility (IV) is 36.7, which is in the 2% percentile rank. This means that 2% of the time the IV was lower in the last year than the current level. The current IV (36.7) is -5.1% below its 20 day moving average (38.7) indicating implied volatility is trending lower
 

mickificki

Member
Mar 25, 2016
811
11,430
Long Beach, CA
So....i apologize for this newb question but, for those of you with 401k's/roth (ie, non-taxable accounts), if you're trading stonks, why wouldn't someone just trade as close to the money as possible to maximize premiums? One wouldn't care if the shares were bought or sold because you aren't getting taxed. so for example if i were to sell calls, shouldn't i just go as close to $760 whether selling calls or puts, to extract maximum premiums?
 
  • Like
Reactions: UltradoomY

MaxPain

Member
Apr 6, 2018
38
151
Utah
Hola gang - closed out my 47x p740's for $1 earlier, 90% profits

Still have 55x cc/lcc765 open for tomorrow, had a 0.45 sell limit set, but closest it got was 0.52, tomorrow we will see, close or roll, don't care too much

Now, with my margin freed-up from those puts, I decided to go a bit bigger with the BPS, went with the same strikes as this week +p680/-p715, which gave a decent net $3 = 50% more than this week

Now, only problem, if you call it a problem, is that fat-fingered one of the buy orders so ended up with more than I had intended, I wanted 300x, I have 411x - yeah, I know, should open 9 more... anyway, a bit more leveraged than I would like, but there you go

So, a quick question to the experienced spread-meisters, how do you deal with these if the SP starts heading south? just close the whole lot out before they go ITM and open again the next week, i.e., just a simple roll?

I realise this has been discussed a few weeks back, but I wasn't really into it them, of someone could point me in the right direction. Cheers!

To add to the other suggestions, you could also do a split roll to reduce the sold put strike and reduce the spread size (if you need more buying power).

Example:
From 411x +p680/-p715
To 500x +p680/-p700
 

ReddyLeaf

Active Member
Mar 19, 2014
1,829
3,529
WA State
So....i apologize for this newb question but, for those of you with 401k's/roth (ie, non-taxable accounts), if you're trading stonks, why wouldn't someone just trade as close to the money as possible to maximize premiums? One wouldn't care if the shares were bought or sold because you aren't getting taxed. so for example if i were to sell calls, shouldn't i just go as close to $760 whether selling calls or puts, to extract maximum premiums?
I do that with puts, but not with calls. I try to guess on Friday’s close and sell CCs above that number. I believe in the company mission and want to stay invested in as many shares as possible. Also, in IRAs there’s no margin, so must have free cash to buyback and roll, if I’ve guessed wrong (like it’s looking for this week). Edit: yes, no tax implications, so turning the wheel isn’t a problem and I’ve done it several times, but not because I wanted to, but because I guessed wrong on the SP close.
 

MikeC

Supporting Member
Supporting Member
Jul 9, 2012
2,959
6,148
Los Angeles
So....i apologize for this newb question but, for those of you with 401k's/roth (ie, non-taxable accounts), if you're trading stonks, why wouldn't someone just trade as close to the money as possible to maximize premiums? One wouldn't care if the shares were bought or sold because you aren't getting taxed. so for example if i were to sell calls, shouldn't i just go as close to $760 whether selling calls or puts, to extract maximum premiums?

I think most of us prefer not to lose shares, even when taxes are not a consideration.
 

Products we're discussing on TMC...

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top