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Wiki Selling TSLA Options - Be the House

jeewee3000

Active Member
Sep 1, 2015
1,217
6,914
Belgium
Can I ask why most are suddenly so bearish about this friday's close?

Last friday most here were expecting a huge up week this week. I was fortunate enough with this drop to close out my rolled 755 10/1 cc's at break even, and I opened some -690/+670 BPS for $2 per contract.

The put wall at $700 is huge. Why on earth would we go below? (Or am I too optimistic? What am I missing? This drop just seems macro related and will pass sooner than later IMO, especially with all the good Tesla news on the horizon.)
 

UltradoomY

Supporting Member
Supporting Member
Mar 13, 2020
351
1,667
Tampa, FL
Can I ask why most are suddenly so bearish about this friday's close?

Last friday most here were expecting a huge up week this week. I was fortunate enough with this drop to close out my rolled 755 10/1 cc's at break even, and I opened some -690/+670 BPS for $2 per contract.

The put wall at $700 is huge. Why on earth would we go below? (Or am I too optimistic? What am I missing? This drop just seems macro related and will pass sooner than later IMO, especially with all the good Tesla news on the horizon.)
I totally agree - last week on Monday we went down to $709...... and then bounced back hard
This week is probably much the same, I am holding strong with 09/24 -$695/+$675 BPS and have no plans of adjusting until later in the week if needed.
 

Lycanthrope

S3XY old dude
Supporting Member
Nov 15, 2013
10,067
79,302
At home
It’s a really exciting day! IV is going up. :). IV Percentile is up to 18%
Yeah, I saw it was ~20% up earlier, however LEAPS are suffering and look like excellent value, but all my cash is tied-up with 25x naked -p720's

So dressed them up a bit with +p520's for $0.18 to form a spread, decrease and fix the margin, freeing up some cash to order 10x Jan 24 600's, the idea being to roll from Jun 23 600's, but like this I can buy in the dip, then hopefully sell later in the week on the up to complete the roll

Handy these shitputs...

Talking of shitputs, wouldn't buying some VIX puts now be a decent idea? Is that possible??
 

Chenkers

Supporting Member
Supporting Member
Apr 28, 2019
558
6,356
Melbourne, AU
It's looking like a quieter week so far.

STO 450 x 685/700 780/810 IC @$2.65 &
STO 100 x 675/700 780/810 IC @4.10

I was originally targeting the second IC but dropped the BPS to $15 range as it looked better but has since traded erratically. So I sold the extra 100 with $25 BPS range and was trying for more but missed the window. I'll reassess Tuesday before I sell more and may roll the BPS side up as high as 695/720 for more credit if we stabilise.
 

AquaY

Supporting Member
Supporting Member
May 30, 2021
430
1,397
Long Island NY
Can I ask why most are suddenly so bearish about this friday's close?

Last friday most here were expecting a huge up week this week. I was fortunate enough with this drop to close out my rolled 755 10/1 cc's at break even, and I opened some -690/+670 BPS for $2 per contract.

The put wall at $700 is huge. Why on earth would we go below? (Or am I too optimistic? What am I missing? This drop just seems macro related and will pass sooner than later IMO, especially with all the good Tesla news on the horizon.)
It is the macros that have me concerned.
We are overdo for a correction, inflation is a major concern and government spending is going the wrong way in that regard.
TSLA has a Beta of 1.3 so macros can effect it greatly.
I think many put on aggressive Put strategies last week and the consensus ( me included) was that TSLA would be up today. Not down like 4%.
So I don't think it's so much being bearish for the week as being surprised by the big move down today, concerned of the overall market and the managing of Puts that are coming close to ITM.
Those using a lot of margin have to be concerned about a market drop more than a cash account does,
 

PastorDave

Member
Jul 23, 2021
65
447
Virginia, USA
Yeah, I saw it was ~20% up earlier, however LEAPS are suffering and look like excellent value, but all my cash is tied-up with 25x naked -p720's

So dressed them up a bit with +p520's for $0.18 to form a spread, decrease and fix the margin, freeing up some cash to order 10x Jan 24 600's, the idea being to roll from Jun 23 600's, but like this I can buy in the dip, then hopefully sell later in the week on the up to complete the roll

Handy these shitputs...

Talking of shitputs, wouldn't buying some VIX puts now be a decent idea? Is that possible??
Yep, selling call spreads on the VIX, buying puts etc. is just like buying or selling SPY, SPX. Just enter the ticker, open the options chain and make your trades.
 

dc_h

Active Member
Feb 14, 2015
3,548
13,469
Naperville, IL
I added to my 690-640 bps and sold a 730 put for 13.50. Should have listened to the resistance being below 730, could have gotten 17.50 for the 730 put. I have no idea where we're going, but it looks like 725 was resistance for now. Evergrande is our new worry wall and will Xi let the banks bail it out and can China bail out all the bad real estate loans out there? This could hang over the market for a while and restrain the positive news from P&D report and even earnings. I still think the trend will drive toward 900 by end of year, but macro issues may keep us from a quick jump past 800, which I was expecting this week or next.
 
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Lycanthrope

S3XY old dude
Supporting Member
Nov 15, 2013
10,067
79,302
At home
These ones with just a monthly expiry?

1632155797449.png
 
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CHGolferJim

Supporting Member
Supporting Member
Jan 28, 2014
1,468
1,710
Chapel Hill, NC
As I'm still very much a noob with spreads and did't have much margin left to play with, I closed it out - did the short during the "pop" at open and the long when it dropped back, both actions slightly too early, but timing the market isn't really what I was after here

Net result: BTC 411x p715 @$9.75 (everage price) = -$2.72, STC 411x p680 @$4.5 = +$0.5, so a total loss on that trade of roughly $90k = much better than $1.3M loss possibility hanging over my head...

And to start the recovery process, STO 50x p720 @$10.25 I'm much more comfy with naked puts...

I know it seems odd to close a p715 and then replace it will a p720, but pure risk management and I'm back in my comfort zone now - I shall play with BPS more, but take them deeper ITM

Assuming those p720's expire, will be a -$40k week, maybe less of a loss if a call-selling opportunity presents itself...
……and you know it will. 😳

In addition to closing the 100121C780 CC’s, I bought 100121C800 to double play the dip (down ~60% from Friday)…..thought doing it for 0924 might not give it enough time to recover.

Shall we imagine the $730 trading today skooches up through the week to close something like $750 on Friday?
 
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InTheShadows

Active Member
Apr 20, 2013
2,320
1,761
USA
I have one IC open, rolled the call side down from 800/870 to 780/850, still for this week. I don’t have any calls sold.

rolled a set of 670/730 puts to next week when the short leg was atm for 2.5.

I sold my first ever set of I dare you put spread on Friday 655/755. Haven’t done anything with it yet.
 

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