Wiki Selling TSLA Options - Be the House

[Knightshade]

Pretty sure I saw the 10/20 as a guess from a few brokers a week or two ago, but nothing actually announced last I checked


EDIT- Thanks to Chenkers below, looks like they did just (like, today) confirm the 20th date that had been specuated)

 

[Chenkers]

Pretty sure I saw the 10/20 as a guess from a few brokers a week or two ago, but nothing actually announced last I checked

I just went to Tesla IR and there's an announcement there confirming the 20th.
Tesla Announces Date for Third Quarter 2021 Financial Results and Webcast

Returning to a Wednesday breaks the tend of recent Mondays. It also takes some of the pressure off trading next week, although I would still expect a bit of buy the rumour bidding up during the week. IV at least should stay high next week and into the start of the next.

 

[EV forever]

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?

My 2 cents- title should have “selling options” because the focus here has been generating income via selling options. There were several other threads regarding trading options which fell off the front page as the discussions were all over the place.

Also, how does a private forum work? Is it controlled membership or just anonymity?

 

[ammulder]

Holy cow, 14,000 open puts at $790! That's... unexpected. Someone wants to lock in gains, I guess.

 

[Yoona]

I just went to Tesla IR and there's an announcement there confirming the 20th.
Tesla Announces Date for Third Quarter 2021 Financial Results and Webcast

Returning to a Wednesday breaks the tend of recent Mondays. It also takes some of the pressure off trading next week, although I would still expect a bit of buy the rumour bidding up during the week. IV at least should stay high next week and into the start of the next.

to the IV experts: does this mean now would be a good time to sell 10/22 BPS? (ie -p730)

TIA!

10/22 MP:

 

[AquaY]

Also, how does a private forum work? Is it controlled membership or just anonymity?

I don't know

 

[Right_Said_Fred]

Not so happy with that early quarterly conference call. I expected a conference call on 10/25 and sold puts for 10/15 and 10/22, hoping I could later roll them to 10/29 for some nice extra premium. When the SP opened virtually unchanged the 10/22 puts were already up 10-15% in value (the ones for 10/15 were 4% down). I would have liked to profit from that extra IV. Well, you can't have it all. I will simply have to wait longer before closing or rolling them.

 

[ammulder]

This forum software has the ability to have a subforum (like at the level of TSLA Investor Discussions) where only certain users can see it or access it; it is not anonymous, but the "rest of the world" would not even know it exists. Probably the mods have such a thing for their own discussions. (I know this only because I'm a mod on another forum with a private mod discussion area using the same software.) I don't know what other capabilities it might have. I don't know what the operators/mods here might be willing to entertain. Presumably they don't want good content disappearing into a black hole?

 

[Tslynk67]

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

I am good with whatever the collective decides

I think there's a lot to be said about having a private thread, we're kind of advertising our trades to the public here, along with our strategies, is that really wise?

 

[Chenkers]

to the IV experts: does this mean now would be a good time to sell 10/22 BPS? (ie -p730)

TIA!

It's hard to tell at this stage. IV for the 15th is currently sitting at 42% while the its at 53% for the 22nd. It could possibly still go higher for the 22nd so it's a battle between potentially rising IV and falling theta. I'm currently in the wait and see camp.

I just STO 150 X 735/760 BPS @$3.50 for next week to kick things off and closed 50 BPS for this week to free some margin. I'll reassess on Monday and open the majority of my positions then including BCS and IC. I'm still holding all of my 830/860 BCS and the rest of the BPS for this week until closer to the close.

 

[Right_Said_Fred]

This forum software has the ability to have a subforum (like at the level of TSLA Investor Discussions) where only certain users can see it or access it; it is not anonymous, but the "rest of the world" would not even know it exists. Probably the mods have such a thing for their own discussions. (I know this only because I'm a mod on another forum with a private mod discussion area using the same software.) I don't know what other capabilities it might have. I don't know what the operators/mods here might be willing to entertain. Presumably they don't want good content disappearing into a black hole?

The power of this forum is that it is open to anyone (except for those with a hidden agenda, and those usually get booted after a while). Input from newcomers is necessary to keep the forum viable and relevant. Closing off sections will make it bleed to death.

 

[BornToFly]

Earnings report on Wed, Oct 20 changes my plans a little. Next Friday should have some support. Oct 22 is a complete crap shoot. We can be up 10% AH on Wednesday the 20th, and then be down by Friday. I will see what happens the next couple hours, and then sell some BPS for Oct 15th today, and the rest Monday.

 

[KTC Lurker]

I'll add support for the private forum, as long as I get an invite Also, if it goes private, there should be some way of allowing new users in from a public discussion - so as not to create an echo chamber.

 

[Drezil]

where are you seeing 51%?
i hv diff numbers... (10/29 is 66%)
View attachment 719090

TIA!

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

Looks like IBKR on TWS gives me different numbers. Point was: The spike yestarday was at 10/29, now it is at 10/22 as i predicted

Edit: in TWS: 53.1% @10/22 vs. 49.5% @10/29 - so flipped compared to yesterday/todays open

subsequently closed my 10/29 calls & try to reopen 10/22 calls if we rise into close/peak at monday.

 

[ChefBoyardee]

Ok I've thought long and hard about the name and have some ideas:

1. "Milking the sweet, sweet udders of the Options cow"
This one is very poetic, but maybe a bit long

2. "Drinking the salty, yet savory tears of option buyers"
Very inspirational but slightly vague

--
(Jokes aside I like the earlier suggestion of "TSLA Options Selling Strategies" - nice and generalized to premium selling)

 

[vwman111]

Some questions on BCS...noticing that the 100k+/week crowd seems to be using them in addition to BPS.
Do they act the same as BPS?
Same rationale for the size of the spread?
Do they require margin?
Do they require to be backed by shares like a CC?
If they require shares, can LEAPS be used, similar to the poor man's CC?

 

[Drezil]

Some questions on BCS...noticing that the 100k+/week crowd seems to be using them in addition to BPS.
Do they act the same as BPS?
Same rationale for the size of the spread?
Do they require margin?
Do they require to be backed by shares like a CC?
If they require shares, can LEAPS be used, similar to the poor man's CC?

Spreads always back themselves .. as you buy and sell a thing.
A PMCC is in this definition often a diagonal spread (different strikes) or a calendar/horziontal spread (same strikes). A BCS is a vertical strike (same end-date, different strikes)

BPS go faster green if the stock rises, BCS go faster green when the stock falls. Both generate income over time if the stock stays away from your strikes.

A BPS + BCS is an "iron condor" where you want the SP in between both.

So if you think TSLA reached a peak & will be pushed down (due to MM, news, whatever), then BCS can be very profitable.

At the moment most people don't trade those, as premiums for Calls are bad compared to premiums for puts & it is not worth the risk. If TSLA skyrockets to 1000 and above this can radically change.

Another way to think about it is: It is a covered call, but if the stock blows out after an event then your loss is limited & you may not need to sacrifice your LEAPs for it or go into month long rolling without income.

 

[Chenkers]

Some questions on BCS...noticing that the 100k+/week crowd seems to be using them in addition to BPS.
Do they act the same as BPS?
Same rationale for the size of the spread?
Do they require margin?
Do they require to be backed by shares like a CC?
If they require shares, can LEAPS be used, similar to the poor man's CC?

They act similar to a BPS except that overall account margin (with TSLA shares) will be rising so this moderates some of the margin impacts of a BCS going ITM.
Similar rationale although I tend to set wider spread sizes on my BCS relative to BPS (but I'm more a $25-30 guy, not $100)
If you have a BPS a BCS can be free of margin depending on the broker. For me with Portfolio margin a BCS is actually neagative margin.
No backing required as the +C and -C effectively cover each other. So shares or LEAPS not required.

 

[bkp_duke]

It's hard to tell at this stage. IV for the 15th is currently sitting at 42% while the its at 53% for the 22nd. It could possibly still go higher for the 22nd so it's a battle between potentially rising IV and falling theta. I'm currently in the wait and see camp.

I just STO 150 X 735/760 BPS @$3.50 for next week to kick things off and closed 50 BPS for this week to free some margin. I'll reassess on Monday and open the majority of my positions then including BCS and IC. I'm still holding all of my 830/860 BCS and the rest of the BPS for this week until closer to the close.

Impressive. For me, 760 is a bit too close to the sun. I'm eying 670-680/710-720 ranges. Premiums are of course not as good, but IV looks to be getting beaten down today.

 

[Yoona]

Mulling over STO 101521C820, maybe with an $8 limit order through Mon AM………

my 10/15 BCS is