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How are those going? Have you cleared out some of those options? It sort of sounds like you have (grats!) and that's a good thing.Interesting strength today, especially at the close. I honestly have no idea which way this thing is heading at the moment. Continuing to split/flip roll my ITM calls and puts. Aiming for a clean slate by year end.
I opened a small "safe" RIVN-Gamble position. Jan '24 160/200 Bear Call Spread.I was just looking into buying Puts for that price for 3/12 expiration. However the premium was so high I thought at selling those and then realized it was tor all gamble and closed my platform and going to play tennis instead.
Have safe trades everyone!
How are those going? Have you cleared out some of those options? It sort of sounds like you have (grats!) and that's a good thing.
I know it takes some effort - if you'd be willing to share some of the specific trades that you've used to make progress I think that many would find that interesting (I leave out position sizes, or maybe talk %s; it's the specific options and spreads - the ones that got into trouble, and then the positions that are getting you out that is interesting, at least to me).
Since you're asking...., I don't like it. You're gambling that we hit 1200 in mid-December. Might not happen. Much more likely we don't significantly breach 800 or 850, so I like taking the sure bet of BPS 850/650 or 800/600 each week for the next 4 weeks. But you and I have very different styles. You like to get much closer to the SP than I do, and at least for the last few weeks, my strategy seems to have worked better as I am making money each week, and you are rolling/trying to survive. But you probably did better June-October by being more aggressive.I am thinking of trying something slightly different - not really in 'being the house' category but might work in the current circumstances. I think the volatility and SP drops are very much due to EM selling related events - even though the actual quantities of shares he is selling seem to be quite small per day compared to volume.
So, I am thinking of doing some debit call spreads. My rationale being that the current pressure holding down the stock is limited duration and after Elon is done selling, we will see an increase.
These are the specific ones I was looking at
Dec 17 expiration -c1250/+c1200 for a debit of ~7.8. Max loss per option 780. Max profit per option 4217
Feb 18 expiration -c1250/+c1200 for a debit of ~13.5 Max loss per option 1350. Max profit per option 3700
The plan would be to exit the positions at 50% of max profit.
What do folks here think? Any reason this is worse than BPS for the current market?
Honestly, I don’t know why roll down puts.Honestly, even my 11/26 870 Put's which I rolled down from 11/19 890 yesterday are currently sitting at 76.29%....I am likely going to close those and open a new position. I am not convinced that this dip is over yet
How did you only use 1.5k margin? To get close to 3k premium (using last pricing), you'd need 3 contracts for a 2925 premium. 3x100x400=12K margin. That's selling 3x160 C, buying 3x200 C, Jan '24I opened a small "safe" RIVN-Gamble position. Jan '24 160/200 Bear Call Spread.
Only 3k in it, but margin-requirements were 1.5k .. so .. 200% ROIM
Some people in the main thread do not care about option traders. Nothing would make them happier than Elon going on a tweeting spree for a week and wipe out the accounts of everyone here.
I respectfully disagree with the above sentiment
oh that's juicy... it didn't happen if you don't link it!Was it yesterday or today in the main thread where someone said it wasn’t very nice of Elon to tank the stock with this series of tweets and they had a friend who needed to sell some shares to buy a house and was going to have to sell 15-20% more shares because of this… and was greeted with what?
There was a notable lack of “bummer!” or any other sympathy.
- Real investors don’t sell, therefore you and your friend aren’t real investors
- only an idiot would put themself in a position where they need to sell
- only an idiot wouldn’t have identified and sold at the top if they needed to sell
- only a jerk would whine about this when the stock price is still up from May
- if you don’t like what Elon tweets you are no good and should sell all your TSLA stock
- …
If I went and said “man it sucks that my put spreads are ITM” I’m pretty confident that I’d get “you’re not a TSLA investor because you don’t HODL only” and “it’s been proven by X, Y, and Z that anybody who sells options loses all their money” and “you may think you’re doing well but it’s only a matter of time before you lose the rest” and “nobody listen to this guy and his terrible ideas but just HODL” and so on.
I don’t necessarily agree that they *wish* to see option traders lose, but there’s certainly no love for options trading, and seemingly not even acceptance really, outside of those who are on this thread also.
Was it yesterday or today in the main thread where someone said it wasn’t very nice of Elon to tank the stock with this series of tweets and they had a friend who needed to sell some shares to buy a house and was going to have to sell 15-20% more shares because of this… and was greeted with what?
There was a notable lack of “bummer!” or any other sympathy.
- Real investors don’t sell, therefore you and your friend aren’t real investors
- only an idiot would put themself in a position where they need to sell
- only an idiot wouldn’t have identified and sold at the top if they needed to sell
- only a jerk would whine about this when the stock price is still up from May
- if you don’t like what Elon tweets you are no good and should sell all your TSLA stock
- …
If I went and said “man it sucks that my put spreads are ITM” I’m pretty confident that I’d get “you’re not a TSLA investor because you don’t HODL only” and “it’s been proven by X, Y, and Z that anybody who sells options loses all their money” and “you may think you’re doing well but it’s only a matter of time before you lose the rest” and “nobody listen to this guy and his terrible ideas but just HODL” and so on.
I don’t necessarily agree that they *wish* to see option traders lose, but there’s certainly no love for options trading, and seemingly not even acceptance really, outside of those who are on this thread also.
I respectfully disagree with the above sentiment
Was it yesterday or today in the main thread where someone said it wasn’t very nice of Elon to tank the stock with this series of tweets and they had a friend who needed to sell some shares to buy a house and was going to have to sell 15-20% more shares because of this… and was greeted with what?
There was a notable lack of “bummer!” or any other sympathy.
- Real investors don’t sell, therefore you and your friend aren’t real investors
- only an idiot would put themself in a position where they need to sell
- only an idiot wouldn’t have identified and sold at the top if they needed to sell
- only a jerk would whine about this when the stock price is still up from May
- if you don’t like what Elon tweets you are no good and should sell all your TSLA stock
- …
If I went and said “man it sucks that my put spreads are ITM” I’m pretty confident that I’d get “you’re not a TSLA investor because you don’t HODL only” and “it’s been proven by X, Y, and Z that anybody who sells options loses all their money” and “you may think you’re doing well but it’s only a matter of time before you lose the rest” and “nobody listen to this guy and his terrible ideas but just HODL” and so on.
I don’t necessarily agree that they *wish* to see option traders lose, but there’s certainly no love for options trading, and seemingly not even acceptance really, outside of those who are on this thread also.
I came here about 6 months ago with the goal of creating cash for RMD at retirement without selling core TSLA. I started with CC and upon assignment and playing the put side of the wheel found much better premiums for a bullish stock. After converting 20% TSLA to cash with assigned CC, I ceased CC and concentrated on CCP.I am getting to the stage where I have 3 paths I could go down with the weekly profits and I am looking for some thoughts on what strategy others are taking. I do not need the cash I am generating in the next 6 months, longer term I likely will. My current strategy is to sell OTM naked puts backed by margin and cash backed puts with whatever happens to be in the account. The strategy would be as the cash balance grows, sell an extra put. Rinse, repeat.
1) I believe some math was done a few pages ago that highlighted that holding anymore than 1,500 shares and then leveraging that for additional margin purchasing power became negligible. Strategy one, purchase additional shares every chance I get, regardless of margin purchasing power implications.
2) Purchase Jan 2024 1000 LEAPS since I believe we will probably double in value between now and then.
3) Cash gang or pay for living expenses for you others.
I know this is a personal question, but I think it also applies pretty broadly the choices everyone here is making on what to do with the profits. I suspect we all fall into these 3 buckets.
Honestly, I don’t know why roll down puts.
As long as the SP is below 1225 you lose Theta on it every day. Could be smarter to wait.. or could be worse due to DeltaI am thinking of trying something slightly different - not really in 'being the house' category but might work in the current circumstances. I think the volatility and SP drops are very much due to EM selling related events - even though the actual quantities of shares he is selling seem to be quite small per day compared to volume.
A few folks here have started selling BCS or CCs - my worry is once it is known Elon is done with his selling, the stock suddenly spikes hard again putting us in the same situation as a few weeks back when it spiked over 20%. BCSs over 20% away from current SP with short leg above 1300 are not giving much in terms of premium - not worth the risk to me.
So, I am thinking of doing some debit call spreads. My rationale being that the current pressure holding down the stock is limited duration and after Elon is done selling, we will see an increase.
These are the specific ones I was looking at
Dec 17 expiration -c1250/+c1200 for a debit of ~7.8. Max loss per option 780. Max profit per option 4217
Feb 18 expiration -c1250/+c1200 for a debit of ~13.5 Max loss per option 1350. Max profit per option 3700
The plan would be to exit the positions at 50% of max profit.
What do folks here think? Any reason this is worse than BPS for the current market?
Ibkr uses less margin for such long timeframes. Margin requirements will increase over timeHow did you only use 1.5k margin? To get close to 3k premium (using last pricing), you'd need 3 contracts for a 2925 premium. 3x100x400=12K margin. That's selling 3x160 C, buying 3x200 C, Jan '24