Wiki Selling TSLA Options - Be the House

[mongo]

Stock was looking for reason to reverse and Elon provided. What he wrote is not new information but he said “no contract” which is perfect for everyone involved to interpret anyway they like.

I mean, it wasn’t going to get to 2000 by mid November, right?

So, not due to Elon's tweet, but it's as good an excuse as any?
Put another way: they search for correlation to deem causality?

 

[traxila]

So, not due to Elon's tweet, but it's as good an excuse as any?
Put another way: they search for correlation to deem causality?

The stock was going to reverse hard at some point and when extreme moves like this are happening it is usually for no good reason.

Similar to the way the media waits for the market to pick a direction and then assigns narratives after the fact. In the end astute observers see that they frequently pull reasons out of their butts as explanations for the randomness of the market.

 

[JustMe]

So, not due to Elon's tweet, but it's as good an excuse as any?
Put another way: they search for correlation to deem causality?

This squeeze was probably started by extreme magnification of positive news and it may be stopped by equally extreme magnification of uncertainty/risk coming from his disclosure that no contract was signed.

Of course the stock price action doesn’t make much sense from a fundamentalist valuation perspective. This is about market psychology

 

[samppa]

If there is no special deal with Hertz, does it mean Hertz will have to order every car through Teslas configurator?
There's only the option of ordering one car at a time.. with quick calculation ordering 100k cars will take about 4 months for one person doing the orders at 20sec/car

 

[mongo]

If there is no special deal with Hertz, does it mean Hertz will have to order every car through Teslas configurator?
There's only the option of ordering one car at a time.. with quick calculation ordering 100k cars will take about 4 months for one person doing the orders at 20sec/car

Maybe that's the deal, a bulk order site feature.

Today's theme sing: "Peter Gunn"

Spoiler: Why?

It's by The Art of Noise
Plus, Spy Hunter was a great arcade game. Must remember to play that on pedestrian speakers when I get the Cybertruck

 

[EV forever]

That’s a pretty lousy‘correction’ or pullback or whatever you want to call it. I was hoping to get out of the sold calls for less loss but it is already recovering fast. What has the world come to when even Elon’s tweets don’t crash the SP

 

[juanmedina]

oh wow that was short lived . Lucid down 7%... thanks Elon

 

[BornToFly]

Dear Elon,
Please try harder.

Sincerely,
My Covered Calls

 

[blckdmp]

Put another way: they search for correlation to deem causality?

You just described every piece of financial reporting since time began!

 

[juanmedina]

sold a 1220cc

 

[mickificki]

sold a 1220cc

nice! i sold some 1300 11/5 and 1400cc...glutton for punishment...1300 going for around $8 right now...
also opened BPS 785/685 for next week exp 11/12

 

[vwman111]

For those with slightly OTM covered calls (since yesterday's run up)

1.Do you wait until the week they expire (maybe 1-3 weeks away) to roll? Or roll as soon as they get OTM even if expiry is several weeks out?
2. Do you roll up a week at a time or look for 4-6 week rolls to get as close to ATM or ITM as possible?

 

[JustMe]

The correction correction is being corrected

 

[bballshinobi]

Just hoping for a flat day so theta and IV will crush the 11/05/21 calls and cause an avalanche down lol

 

[MikeC]

I guess gap fills go both ways.

 

[ammulder]

It's switching directions so fast today I can't keep up...

Edit: oh, look, NASDAQ has the same sharp peak

 

[Yoona]

Dear Elon,
Please try harder.

Sincerely,
My Covered Calls

November 2, 2021 10:15 AM ET (BZ Newswire) -- Long Ideas

Shares of Tesla, Inc. (NASDAQ:TSLA) made history Monday, but it might not be the good kind.

The stock is very overbought. This means it has reached extremes above what would be its typical or average trading range. This is important because overbought stocks tend to sell off.

The lower half of the below chart shows the RSI Momentum Indicator. It measures how far Tesla's stock has moved in a short period of time. When the indicator reaches high levels it shows overbought conditions.

As you can see on the chart, the RSI reached its highest level ever. Stocks don't usually make history, but when they do, it's time to pay attention. Tesla may be about to reverse.

 

[traxila]

nice! i sold some 1300 and 1400cc...glutton for punishment...1300 going for around $8 right now...

I sold at 1425... cause I am terrified that way, lol.

Hit average daily volume an hour into trading. If it tails off, history says consolidation imminent.

 

[st_lopes]

Had half of my CCs early assigned this morning. Emotional roller coaster of cursing the pull back on the same day as assignment just to see the pull back fizzle out. Crazy. Went from thinking this is the other side of the blow-off, to it looks more like a bull flag.

After managing positions ended up with the following for this week

• 100x IC 750/800 1400/1450;
• 20x IC 850/900 1200/1250;

And for next week

• Rolled 50x BCS 1000/1060 to 1100/1200 for $4 cr;
• I'll enter the BPS leg of that likely next week subject to price action;

Some short term paper losses that make my eyes bleed, but we'll see how things shake out over next few trading sessions. I'll likely leave that pile in cash for now and slowly DCA back in to a mix of shares and leaps.

Finally, orders in to roll my remaining CCs (790 and 795) which expire this week. Not much to do there as I'm not ready to turn those in to anything other than CCs for now. 3-week roll for $5 strike improvement aiming for 1cr, may change the order later in day.

Also sold out of some uncovered leaps this morning, feeling a little more comfortable with that portion of the portfolio in cash right now. Those leaps were up 100%. I'll be needing to pull some cash for next year's living expenses (and home renos) and it leaves me with a little more margin room to manage the spreads if needed.

 

[Right_Said_Fred]

Besides HODLing shares (less than before, but still plenty) I've been selling naked puts (and sometimes naked calls) for two years now. I focussed on naked puts with an expiry of one month, but recently I moved to an expiry of one week. And I like it a lot. Time is your friend, much more than it is with strikes of a month. It's amazing to see those premiums melt away.

I have been contemplating spreads too, but at the moment they don't look very attractive. I see these disadvantages:

1. You're giving away a lot of premium received for the short leg by buying the long leg.
2. It's more difficult to roll the position and keep the spread intact when the stock moves against you.
3. The spread had to be very large (100, 200 or 300 points) to get some decent money. I know this has a lot to do with the current situation; it was better a few weeks ago.
4. The black swan risk is higher because of the high number of spreads required to get a nice return.

There are also advantages:

1. There's no risk of an infinite loss, thanks to the long leg.
2. The maintenance margin is much smaller, so you can open more positions with the same amount of cash or shares. But this leads to the higher risk described under 4.

So with the way the stock is behaving at the moment and the way premiums are priced right now, I've decided to stick with selling naked options for now.