Wiki Selling TSLA Options - Be the House

[Discoducky]

Maybe we could have our own section called "Tesla options main thread" and then spin off sub threads from that?

I'd specifically find great value in one thread where we only discuss our current bets, like this week and next, and why we made them.

Another where we can debate the rationales for different strategies and timings.

Or I'm ok with whatever others want.

 

[Oil4AsphaultOnly]

Just throwing this out there. I sold a bunch of 9/3 720c (slightly ITM), with the thinking that, "even IF max pain doesn't bring the SP back down to around 700 this week", the 700 call wall during triple-witching (9/17) "should" ensure that I can roll it out for some credit thereby averaging me ~$6/week of profit for the next 3 weeks. That's my most aggressive trade ever! Now to keep fingers crossed.

Nice, I was thinking the same thing! That 700 wall is huge!

EDIT: Ok, I'm in for STO 10x 9/3 $720c

So how did it go for you? I'm now on week 4 of my roll (720c -> 730c, then 730c -> 740c, then 740c -> 750c) and I think I might have to roll again!

Missed out on 4 weeks of premiums! I know that there were a variety of strategies that I could've employed to get out of the position sooner, but I'm a slow learner despite having read everyone else's experiences. At least my BPS were generating income during this time!

 

[Tslynk67]

Thanks @Right_Said_Fred ! I'll get back to you on a name change (soon).


For participants and newcommers - I'm taking suggestions / ideas for the new thread name.

My first idea with little or no thought:
"Selling TSLA options for fun & profit"

(I like a bit of whimsy, in addition to being descriptive).

Or after the book I read recently "Get Rich with $TSLA Options"

 

[pz1975]

I suggested a title change a few weeks back. I think it was: @adiggs’ TSLA Options Selling Strategies or something like that. I think it should stay focused on the selling of options strategies vs making it too wide open. If it also includes all option buying strategies it would likely become way too busy.

 

[EV forever]

Or after the book I read recently "Get Rich with $TSLA Options"

Well, you read my mind - almost. I was thinking "Adigg's guide to get rich quick with $TSLA Options" as a funny title

I suggested a title change a few weeks back. I think it was: @adiggs’ TSLA Options Selling Strategies or something like that. I think it should stay focused on the selling of options strategies vs making it too wide open. If it also includes all option buying strategies it would likely become way too busy.

I agree that options selling strategies should be in the title.
How about

"Adigg's Guide to $TSLA Options Selling Strategies" in the theme of The Hitchhiker's Guide....

@adiggs deserves the credit for starting the thread and taking time to putting in a lot of info. Or "Teslanaire's guide to $TSLA Options Selling Strategies"

I did not get a chance to listen to the shareholder meeting call - did listen to Dave Lee's recap. Everything looks great and Tesla is crushing it (Dave's words), so as usual my guess is that the SP will drop tomorrow

 

[strago13]

I too would be willing to share a lot more if it was a private forum.

I am good with whatever the collective decides

 

[jeewee3000]

Regarding the evolution of the thread I'd like to chip in with my opinion:

1.- How many threads?

I'm intrigued by @Discoducky 's interest in having a seperate part of the forum for options, with a main loose thread for current plays and seperate threads regarding specific strategies/management techniques, but I don't know how workable this is. I'm comparing to our experience with the main investor thread, which used to be one thread, then later two threads, and now one thread again.

Thing is, most people that want to read up on a topic and join in with smaller contributions would IMO be discouraged to keep up with all the threads. Also, discussing current plays/trades is IMO inseperable from the reasoning behind it, which in the case of TSLA options is often very news-heavy (or current options activity heavy).

In theory it would be great to have a main loose thread to follow daily, and seperate (much shorter) threads that dive deep on certain option strategies. For example:
Vertical spreads : BPS / BCS
Diagonal spreads:
CC's / LCC's
Naked puts
IC's and other multileg (+2) strats

That said, maybe a lot of value will be lost to us by the split-up. If I for example never read the IC thread, I'd miss out on @Yoona 's insight, which helps tremendously on execution of BPS for example. And as posters it would be discouraging to have to post the same insight in multiple topics.

We could also just have one thread like now, but have a seperate moderated wiki that we finetune together that contains a summary of all strategies and possible management techniques, pros and cons and risks of each strategy/technique and general things to keep in mind (IV, IV crush, binary events, delta, etc).

2.- Name of main thread

I wouldn't mind mentioning godfather @adiggs in the title, but I recall he/she mentioned not wanting that praise/attention too much.

My first ideas regarding the name are more like "generating income from stock/cash by trading options" but that sounds dull. It is the description of this thread in my eyes though.

Other names could be:
"The Options Thread"
"Options roundtable"
"The Cult of @adiggs "

 

[ammulder]

Let’s please not call it teslanaires or the get rich thread. Have some dignity, man!

I do not think there should be an expectation to reveal one‘s account or position size to participate on this or any related public thread. There are many, many reasons one might not want to do that. In fact, it would be great if the intro recommended notation for put, calls, and spreads and suggested a way to say what you were buying/selling without indicating how many of that thing, unless you wish to share the number. Edit: this could mean either omit the amount, or scale it up or down to how much you’d do for a fixed amount of backing, say $100k.

It might be nice to have a beginner’s guide area— I’m sorry I’ve forgotten who had their kids trading with a $5k account and a plan, but that would be awesome to put in front of newcomers. I had thought I would just do the trading and gift proceeds to the kids, but now I’m thinking it could be educational for them to be involved when they hit that age, and also they could potentially grow something larger than the gift limits in a year.

 

[Chenkers]

Let’s please not call it teslanaires or the get rich thread. Have some dignity, man!

I do not think there should be an expectation to reveal one‘s account or position size to participate on this or any related public thread. There are many, many reasons one might not want to do that. In fact, it would be great if the intro recommended notation for put, calls, and spreads and suggested a way to say what you were buying/selling without indicating how many of that thing, unless you wish to share the number.

It might be nice to have a beginner’s guide area— I’m sorry I’ve forgotten who had their kids trading with a $5k account and a plan, but that would be awesome to put in front of newcomers. I had thought I would just do the trading and gift proceeds to the kids, but now I’m thinking it could be educational for them to be involved when they hit that age, and also they could potentially grow something larger than the gift limits in a year.

It's me helping my kids build up their (no longer) small accounts.

Since @ggr has set up a separate wiki thread from my glossary post I've been giving some thought to adding to it with input from the various suggestions here. I would keep the glossary first and then add additional posts below, such as:

1. Index of all subject posts (to aide navigation)
2. Purpose of the "$TSLA Options Selling" thread, or whatever it gets called .
3. General Introduction to selling options as a trading strategy, including risk disclaimer
4. Pointer to educational resources and links
5. Market dynamics, MM manipulation, max pain, pinning, technical indicators, IV Crush
6. Posts for options strategies starting with more basic to more sophisticated - CC, CSP, Wheel, LCC, Strangles, BPS, BCS, IC, Butterfly's, Calendars
7. Different strategies for choosing strikes and spreads - OTM, NTM, Weekly/multi-week, $100 through to $20 spreads
8. Managing risks and strategies to improve positions (Rolls, Split Roll, Reversal etc)
9. Managing margin or cash reserves
10. Managing or reinvesting profits
11. FAQ questions with answers

I can get it set up and add some initial content and then progressively edit and update it based on suggestions. I read all the posts here and in the main thread so can pick up and incorporate comments. Also happy to handle suggestions through DM if preferred. The intent would be that the Glossary & FAQ thread acts as a companion reference point to the "wheel" thread and doesn't grow apart from the reference posts. The main discussion and week to week trading strategies would continue in the "wheel" thread.

@adiggs and others, how's that sound?

 

[FS_FRA]

Please can we keep the number of threads / wikis etc. to a minimum. It's hard enough to keep up with the main thread and our little microcosm over here. The thought of having to cross-read 10 threads to keep abreast of the latest thinking gives me a headache...

1 WIKI covering content such as @Chenkers suggests and 1 thread like this one should be enough.

The WIKI should be encyclopedic content, while the thread should continue as is.

My $0.01

 

[juanmedina]

I still want to know what Dave said on Twitter, did he call us geniuses or gamblers lol.

Yesterday in the afternoon with the IV bump I opened my BPS for the 15th 700/640s and 680/630s. I also sold some $850 CC's.

 

[samppa]

I see one potential problem here: doing what many people here do - selling options and whatnot - actually is hard. It takes a lot of education and effort to be successful.

So in my opinion, we should not make some get-rich-instantly-selling-options-without-risk guide.. which doing this is not.

If one wants to get into selling options, one needs to put in the effort to learn enough. I know it is all explained on the first page. But somehow a wiki or whatever it ends up being should not give out simple, easy solutions - they do not exist.

On top of options education, I'd wager that everyone here has already followed TSLA and Tesla for years, and that gives good insight on betting where the stock goes.

 

[adiggs]

It's me helping my kids build up their (no longer) small accounts.

Since @ggr has set up a separate wiki thread from my glossary post I've been giving some thought to adding to it with input from the various suggestions here. I would keep the glossary first and then add additional posts below, such as:

1. Index of all subject posts (to aide navigation)
2. Purpose of the "$TSLA Options Selling" thread, or whatever it gets called .
3. General Introduction to selling options as a trading strategy, including risk disclaimer
4. Pointer to educational resources and links
5. Market dynamics, MM manipulation, max pain, pinning, technical indicators, IV Crush
6. Posts for options strategies starting with more basic to more sophisticated - CC, CSP, Wheel, LCC, Strangles, BPS, BCS, IC, Butterfly's, Calendars
7. Different strategies for choosing strikes and spreads - OTM, NTM, Weekly/multi-week, $100 through to $20 spreads
8. Managing risks and strategies to improve positions (Rolls, Split Roll, Reversal etc)
9. Managing margin or cash reserves
10. Managing or reinvesting profits
11. FAQ questions with answers

I can get it set up and add some initial content and then progressively edit and update it based on suggestions. I read all the posts here and in the main thread so can pick up and incorporate comments. Also happy to handle suggestions through DM if preferred. The intent would be that the Glossary & FAQ thread acts as a companion reference point to the "wheel" thread and doesn't grow apart from the reference posts. The main discussion and week to week trading strategies would continue in the "wheel" thread.

@adiggs and others, how's that sound?

I particularly like this idea - that the FAQ / Glossary is a separate thread and that it doesn't grow, but rather gets managed and updated as needed. Hopefully there is an option in the forum software to make it more like a wiki that can permit multiple users to edit, if for no other reason it'll enable us to spread the work out. I really appreciate the willingness to dive in and get this all organized - it has the potential of being a lot of work (thus the desire for something that can have several editors), though that can be reduced significantly by relying on already written contributions rather than rewriting it all.

I also like keeping it somewhat shorter by putting an emphasis on links to already existing posts / videos, whether they are internal or external to TMC.


I am a fan of the thread name change, and I like the idea people are coming up with. As much as we all need our own cult though, I'd rather pass on that

A thread name change won't change any of the history of this thread - just an update to make it more current.

 

[Discoducky]

So how did it go for you? I'm now on week 4 of my roll (720c -> 730c, then 730c -> 740c, then 740c -> 750c) and I think I might have to roll again!

Missed out on 4 weeks of premiums! I know that there were a variety of strategies that I could've employed to get out of the position sooner, but I'm a slow learner despite having read everyone else's experiences. At least my BPS were generating income during this time!

It wasn't great, but my way back machine says that particular week worked out ok with ~35% profit. It was a few weeks after that I bit the bullet when Evergande sank the market and took a loss.

Sorry you've been rolling so long. Looking out, it seems like we will stay in this bull trend and I'm reluctant to sell more CC's.

I'm interested today if the IV is higher and I can get $3 for $840's with 10/15. I'd be happy with that, but I'm also now on the BPS bandwagon in my retirement accounts as I sold some shares, turned them into LEAPs and used the extra cash to back these multiples of BPSs.

 

[buttershrimp]

how bout “Zen and the Art of TSLA options”

 

[corduroy]

I suggested a title change a few weeks back. I think it was: @adiggs’ TSLA Options Selling Strategies or something like that. I think it should stay focused on the selling of options strategies vs making it too wide open. If it also includes all option buying strategies it would likely become way too busy.

Agreed about keeping the focus on selling options. We don't want degenerate call gamblers clogging up the thread. (Not that I've ever done that)

I love the idea of a private slack channel!

 

[AquaY]

My 2 cents: Tesla Options Trading Strategies.
I like the idea of a glossary for terms and info.
I know the thread has evolved and needs a name that fits what it has become better but I think the beginning of the thread should be somehow left for people that want to do " the Wheel" perhaps split the thread. But this is a minor point.
I like the idea of private thread as well which may entice more people to share.
I found I shared more because of @adiggs & @Lycanthrope.
@Lyncanthrope shared is amounts, and levels of his profits and losses something I only did because of him doing it first.
And I for one don't mind the beer and dog remarks on occasion. We're not robots. and even when we go a little OT we do so for a few posts and that's it.
I'd say we have a far better record than most threads. Certainly better than the main thread which seems to run rampant with personal stories of their vehicles and their feelings of FSD.

Market opens in about 45 minutes so maybe we should also start talking about today's trading. It is Friday
Futures point to a mildly up opening. TSLA is up $2 in Pre market trading, around 795.
I'm sure most know 800 is a resistance level.
As for me I opened a good amount of BPS for next week on Wednesday and Thursday.
Wish I would have done more Wednesday than Thursday though
I have a few positions to close out today but all in all, barring a swan dive I'm looking at an awesome weeks profit.

I want to see where put premiums open and then decide what I will do if anything.
What's everyone else's plan?

 

[Drezil]

Or after the book I read recently "Get Rich with $TSLA Options .. or bankrupt trying"

FTFY

 

[Drezil]

I just saw: Earnings-Call scheduled for 20th after close.

Yesterday IV was highest on 10/29 with 51%, 10/22 was only 45.7%. I guess this will reverse today.
So maybe sell options with 10/29 at open and then roll them to 10/22 if IV changes as a Vega-Play could work. I never tried that, but math says it should work ...

 

[Yoona]

I just saw: Earnings-Call scheduled for 20th after close.

Yesterday IV was highest on 10/29 with 51%, 10/22 was only 45.7%. I guess this will reverse today.
So maybe sell options with 10/29 at open and then roll them to 10/22 if IV changes as a Vega-Play could work. I never tried that, but math says it should work ...

where are you seeing 51%?
i hv diff numbers... (10/29 is 66%)

TIA!

edit: or am i looking at the wrong place...