Wiki Selling TSLA Options - Be the House

[samppa]

IB and portfolio margin plays funny tricks sometimes.. I had around 15% margin buffer available yesterday, then when TSLA dropped to 1060, suddenly my margin was negative and I was in margin deficit. IB autoliquidated some my short put contracts, which brought me out of margin deficit. Luckily these were at the moment still slightly profitable positions.. I had -p1090/p900 spreads and they liquidated 3 -p1090 contracts, leaving me with naked puts. So no harm done here, but gotta be a bit more careful with margin and actually run those stress tests..
Strange thing is that my account right now is about 70% TSLA / 30% cash, so there should be plenty of cash buffer. I've been hoarding cash for the past 3 months. Goal is to have 50% TSLA / 50% cash.

 

[OrthoSurg]

Bonjour, mes amis! (Hello, my friends!) I shut down my 12/3 IC's BPS... $1M in 2 weeks - do you like it, boys?

View attachment 739446

The BCS i am closing on Fri.

In other news... Today is my 1-year anniversary doing options! I lived to tell the tale! I survived one full year of wins and losses (some were really, really, really painful). Can you imagine my first BPS had a width of 5??? I think -p600/+p595

THANK YOU SO MUCH
THANK YOU SO MUCH
THANK YOU SO MUCH

... to this thread and to everyone for your postings, comments, not advices, corrections, support, messages, help, trades that i copied, etc. I truly appreciate every single thing. I read all postings. This thread is my fave nighttime reading after i finish playing online games. In the morning, it's the TSLA ticker (of course), then maxpain, then Papafox, then this thread again. Always in that order. Some postings i print. Some i am still reading again up to now and STILL don't get it (ie LEAPS and timing it). I finally understand theta now... still working on what in the world has a strike price's vega got to do with anything.

If i have to give an anniversary speech and not be a drama queen, here's the #1 lesson i learned the most from experience: DO. NOT. BE. GREEDY. But what does it mean exactly?

When opening a position, don't let the credit determine if it's a go. The first priority is to make sure the strategy/position will give a very high probability of success. Then, get the credit, whatever amount it is. Too low? Suck it up. Does it matter? It pays the bills and you're doing this the next 30 years anyway. Nobody wants a loss... to avoid it, don't chase better premiums coz they come with higher risks. Slow and steady cash building up week after week is the key to surviving one year. Ask me, i know!

THAT IS ADVICE! YES! FOR REAL! (sorry for yelling)

Félicitations pour ton incroyable succès et ton résultat sur 1 an. J’espère faire pareil.

I am still evaluating multiple trading strategies like selling puts closer to stock price for greater premium and rolling the contracts for time if the trades go against me. Have not tried the BPS yet with larger spreads, waiting for my fund to be officially transferred to IBKR because my actually platform does not let both legs being placed in one trade. Can you share what made you migrate from naked puts to 5 wide BPS to the strategy you are using now? How far OTM have you migrated from those $5 wide spreads to the ones your are currently using? I am thinking to start 200 or 300 wide spread first because they seem easier to manage if the stock goes against our position.

Congratulations again!

 

[TheTalkingMule]

Too early in my career to have a reliable radar for BPS premiums, but $5 for 12/10 $760/$860 seems delightful. In!

 

[Knightshade]

You know, I really thought I wasn't gonna have to worry about the -1050/+950 BPSes I had expiring today.

That's what I get for thinking.

 

[TheTalkingMule]

You know, I really thought I wasn't gonna have to worry about the -1050/+950 BPSes I had expiring today.

That's what I get for thinking.

Last thing they want is for you not to have to think(aka worry)!

I got today backwards. Assumed we'd see a spike at the open and a huge selloff this afternoon as folks deleverage into what could be a bad news weekend.

Looks like we're getting a shock to get folks to sell positions like the one above. Then I assume we'll rise into the close as MM's take the golden opportunity to cover before the weekend.

Not advice.

In for 12/10 BPS $700/$800 @ $3.25

 

[OrthoSurg]

You know, I really thought I wasn't gonna have to worry about the -1050/+950 BPSes I had expiring today.

That's what I get for thinking.

Same here, just rolled my 10x -p1045 to next week for 920 strike price for a 0.5 credit.
my next put at risk is at 990.
rolling day it seems

 

[corduroy]

In for 12/10 BPS $700/$800 @ $3.25

That's a great price for a "safe" BPS.

 

[elasalle]

Closed the short legs for Jan, Feb vertical Call spreads .. but might have done it a bit too early.

 

[BornToFly]

I'm taking advantage of the terrible jobs report. I rolled 3/4 of my positions to 12/17. Kept all strikes the same. Great premiums! I wouldn't be doing this any other time of the quarter. I'm tripling my monthly goal. I'm just not worried that we won't be over 1000 at the end of the year. BPS 700/1000s and 750/950s.

 

[InTheShadows]

I am so glad most of my 80% GTC orders executed at market open.

Rolled 3 bps sets that didn’t execute to next week for same strikes for 400% more premium than I originally collected.

Working on opening next weeks positions now. Quite a busy morning.

 

[strago13]

I'm taking advantage of the terrible jobs report. I rolled 3/4 of my positions to 12/17. Kept all strikes the same. Great premiums! I wouldn't be doing this any other time of the quarter. I'm tripling my monthly goal. I'm just not worried that we won't be over 1000 at the end of the year. BPS 700/1000s and 750/950s.

I also rolled my positions from 12/10->12/17 because the premiums were just to much to pass up. Also didnt roll down.

EDIT: 12/17 950 puts

 

[TheTalkingMule]

I'm taking advantage of the terrible jobs report. I rolled 3/4 of my positions to 12/17. Kept all strikes the same. Great premiums! I wouldn't be doing this any other time of the quarter. I'm tripling my monthly goal. I'm just not worried that we won't be over 1000 at the end of the year. BPS 700/1000s and 750/950s.

I'm trying to get a feel for how much I'm missing out on by leapfrogging a week rather than just cycling BPS every Tue/Wed/Thurs to the limit of my IRA cash margin.

To be sitting below $1000 in January would need some very deep pocketed and steel sacked hedge funds IMO. And they're just too beat up to mount that kind of offensive. CNBC was going thru the(I assume monthly) hedge fund report this morning. "Down 40%, down 8%, etc" Can these guys honestly turn to their investors in December with their big idea being short TSLA? I doubt it.

I think we're in a range here and y'all folks will make a killing until 4Q earnings FOMO kicks in or one of these major announcements triggers a move up.

 

[TheTalkingMule]

In for BPS 12/10 +$790/-$890 for $10.

While we're in this tight 7 or 8 week window til 4Q earnings come out, I really like this @BornToFly sentiment of jumping into the big IV spurts and being willing to roll if the pain gets worse.

It's TSLA, there's zero way to know how long any pain or euphoria will last, but if SP is at $1000 on January 25th our forward PE is something like 103. I don't see the market letting that happen.

 

[mickificki]

https://twitter.com/x/status/1466789102289059842

 

[BornToFly]

Since I exceeded my weekly goal for next week just by rolling 3/4 of my positions, I'm saving the last 1/4 for next week. If we keep dropping, maybe I can use the profits from the last 1/4 to improve the strike prices on the ones I rolled today should the need arise.

 

[jeewee3000]

Anyone has a clue why TSLA is down more than 6% whilst FAANG is down around 2% like the indexes?

Job report market correction, ok. But there's gotta be more. Elon selling? (That shouldn't surprise anyone though).

 

[ZeApelido]

Welp, did what I was thinking, though for less premium than I could get a few days ago. Sold 90 x 600/800 Jan 23 BPS for $60. Return on max risk is ~ 39%, so would be about 0.75% per week if taken to expiration. I believe that's more than or similar to what I would comfortable get week to week. Big numbers but I feel rational, let's see how it goes!

 

[dl003]

All EVs have been down massively over the last 2 days.

 

[jeewee3000]

View attachment 740195

IT Crowd, Season 2 episode 2 : the best episode of all the series!

You sir, are a connaisseur.

 

[traxila]

So went with 100x 550/500 Jan 7 BPS. Got 1.05.

Losing already. Is it conservative? / s

Have strong conviction that Elon is selling again today. If I am wrong I will be sad….