Wiki Selling TSLA Options - Be the House

[dc_h]

I sold some call spreads for the first time in several weeks. No added margin and I don't think we're going over 950. I opened 950-1000 and 1025-1125 call spreads, in addition to 705-645, 710-660 and 760-660 bps. I think I'll look to exit half of the positions tomorrow. I imagine that is another reason to sell the news, as people close option positions reducing market maker position requirements.

 

[BornToFly]

If it was slow and steady wouldn't that kill the IV and hence the $ per contract? Just asking as a new options trader, I'm not trying to correct you.

It does hurt IV. That is why call premiums haven't been very good. But so many believe TSLA is over valued that the Put side has continued to offer good returns, and as a Bull, that is what I care about more. I think that Put premiums will continue to be good as long as TSLA has such a high market cap, and the average investor has no idea why.

 

[stealthyc]

I prefer this approach of letting the bollinger band come back up to us rather than us going back down to it. Same thing happened early august.

 

[ninpb]

It does hurt IV. That is why call premiums haven't been very good. But so many believe TSLA is over valued that the Put side has continued to offer good returns, and as a Bull, that is what I care about more. I think that Put premiums will continue to be good as long as TSLA has such a high market cap, and the average investor has no idea why.

Their reasoning: Surely it can't keep going up.

 

[PeterJA]

If you have $100k of margin, you could sell a Jan 2024 $1000 put for about $32k immediate cash… or with a bit more margin an $1100 for about $40k up front. Those are presently ITM, of course, so there’s some risk… but do you honestly think TSLA won’t gain another $150 in 2 years?...

Isn't there a big risk of the put getting exercised early? If I owned $87k of stock that I could sell for $100k, I would do so immediately.

 

[stealthyc]

Isn't there a big risk of the put getting exercised early? If I owned $87k of stock that I could sell for $100k, I would do so immediately.

And then having sold the option for 32k, he'd pocket his 9k happily and do it again. You would have paid 32k for the privilege of making 23k on your shares. Early exercise sacrifices the extrinsic value to the seller, which is why it almost never happens.

 

[jaspa]

Isn't there a big risk of the put getting exercised early? If I owned $87k of stock that I could sell for $100k, I would do so immediately.

There's the small possibility, but unlikely since it's 2+ yrs out.

 

[BornToFly]

Sold some 10/22 BCS 1000/1050 to create iron condors on my old 720/670 BPS. Will probably do more tomorrow after I see price action. Macros slowly pulling us up today.

 

[tradenewbie]

Sold some 10/22 BCS 1000/1050 to create iron condors on my old 720/670 BPS. Will probably do more tomorrow after I see price action. Macros slowly pulling us up today.

I am also waiting to sell my 1000/1100 to create iron condor, planned to sell at $1 but got greedy to sell at $1.5 at open, didn't come through, so lets see if I can get the $1 fill later today

 

[samppa]

Rolled my -750/+700 bps to -800/+700 bps, half the contracts. Interesting experiment. Leaves fair room for adjustments, and brought in nice additional credit.

 

[bkp_duke]

Sold some 10/22 BCS 1000/1050 to create iron condors on my old 720/670 BPS. Will probably do more tomorrow after I see price action. Macros slowly pulling us up today.

I'm going to be a bit contrarian to this. Certainly not criticism, just a different perspective.

I don't want to open anything else for 10/22. Instead I'm closing out positions today and tomorrow as they hit 90%. Then my eye will be looking for an IV jump after earnings to enter new positions, like BPS for 10/29.

 

[adiggs]

I've closed out about 1/3rd of my BPS expiring this Friday. I think the realized results have ended up in the neighborhood of 9% in the last weekI planned to close today or tomorrow regardless, with a desire to get new BPS entered before end of trading tomorrow. I don't yet know if the new position will still be for this Friday (rapid time decay!) or if it'll be for 10/29. I'll probably close the remainder today and figure out tomorrow when it arrives.

 

[MikeC]

Sold -c1000/+c1100 for 0.75/contract to make an iron condor.

 

[CHGolferJim]

Maybe I'm missing something. I see folks here concerned that selling puts in the mid 700s is "too close to the sun" of a sell-the-news dip.

If TSLA dips $100 after earnings, I'd consider that a fantastic buying opportunity, since the share price is highly likely to go right back up in a few days or weeks as the news is digested and more catalysts arrive (Berlin, Austin, FSD Beta 11, etc.). What am I missing?

Sounds good, I’d like to get out of, or roll, my 102221C840s, 121721C900s and 031822C900s at minimal cost. Feeling a little tied up right now.

 

[FS_FRA]

Closed my 10/22 705/605 BPS for just shy of 90% profit. I had twice the normal amount of contracts opened on this BPS and managed to double my monthly target on this trade

Now going to sit on the sidelines until Thursday late / Friday to figure out what to do for 10/29.

 

[BrownOuttaSpec]

I'm still new to this but I rolled up some of my BPS 10/22 650/725 to 10/22 680/755 just to get a feel for how the rolling works and make a few bucks. Right now planning to close late wednesday before EoD. The $1 per contract trade is pretty painful to look at when doing these "small" trades with etrade. Thinking more and more about tastyworks brokerage and their lower fees..

 

[doddiozil]

I'm still new to this but I rolled up some of my BPS 10/22 650/725 to 10/22 680/755 just to get a feel for how the rolling works and make a few bucks. Right now planning to close late wednesday before EoD. The $1 per contract trade is pretty painful to look at when doing these "small" trades with etrade. Thinking more and more about tastyworks brokerage and their lower fees..

For those using E*trade. Do you use the Power E*Trade platform for your spreads? or the regular platform?

 

[ggr]

For those using E*trade. Do you use the Power E*Trade platform for your spreads? or the regular platform?

I'm just starting to do spreads. I did use Power ETrade for a while a few years ago, but found that it both ruined my productivity for anything else, and induced me to overexuberance, so I stopped. Just use the regular interface.

 

[BrownOuttaSpec]

For those using E*trade. Do you use the Power E*Trade platform for your spreads? or the regular platform?

Regular platform. To Add/Close/Roll spreads someone else here (I forget) said this little trick.

1. Go to Trading
2. Then Options
3. Type in the stock name (TSLA)
4. Go to the Positions Tab on the right
5. Select the Spread you wish to manage and check the boxes
6. Select the action you wish to take (Close/Add/Roll)
7. <--- It will move the options over and a suggested action into the trade box.
8. Change to your desired action (Roll is shown below)
9. Click a price option (Orange Lines) and duration
10. Preview Order
11. Check your Margin impact on the next screen (my numbers have been changed )
12. Place Order

 

[doddiozil]

Regular platform. To Add/Close/Roll spreads someone else here (I forget) said this little trick.

1. Go to Trading
2. Then Options
3. Type in the stock name (TSLA)
4. Go to the Positions Tab on the right
5. Select the Spread you wish to manage and check the boxes
6. Select the action you wish to take (Close/Add/Roll)
7. <--- It will move the options over and a suggested action into the trade box.
8. Change to your desired action (Roll is shown below)
9. Click a price option (Orange Lines) and duration
10. Preview Order
11. Check your Margin impact on the next screen (my numbers have been changed )
12. Place Order

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