They were for this week, 12/10, I sold them ATM, so the premium was pure extrinsic, and it burned-off sooner than I expected! No point waiting for 100% return when you can take 75% the next day, de-risk, move on...
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I'm trying to do the same. Today, for instance, I started closing out the 12/10 -p1000's when the SP hit $1053, then waited a bit, it dipped below $1040 and then I sold the same strikes for next week - IMO this gave about $7 per strike net credit, which on 35x contracts is better than a poke in the eyeNOT-ADVICE
This was my intent and approach back at the start of the year - rolling one winning position into a new opening position, with the intention of being in the market as close to full time with Theta chipping away for me, as I possibly could. I also wanted to be in the market on both sides (puts and calls) - I thought of that as my perma-strangle though the puts and calls weren't always on the same expiration date, so technically not a strangle. Sometimes an inverted strangle.
That was part of how I got into trouble with naked puts in Feb-May, though that was mostly not having as many management tools to work with.
Over the summer I started looking for at least some strength (or a belief that the current share price was a local min/max) before selling the positions. Still looking to be in the market with both puts and calls. What happened for me is that my income skyrocketed when I started doing this. Like 3 of my best 3 months over the summer when I started opening into strength (down for puts, up for calls) and closing on weakness (up for puts, down for calls).
I don't always get the local min for puts even vaguely correct. Like the 750/1050 put spreads I opened when the shares were off $5 at $1150 last week - that was still a better entry than earlier that day when the shares were actually up.
If I were opening calls today today would be a day to consider that with the shares up $30. Heck I might do that anyway - need to think about it. I've improved my results pretty significantly by being willing to be out of the market for days or even weeks at a time (though its mostly been hours or a day or 2).
scubastevo80
Member
We closed all open BPS today and have no positions on currently. I also am looking to open on strength given a 3-5% move can cause a 50% plus move of 1 week out options prices. As much as I'd always like to be in the market, I'm not there yet and given call premiums, I haven't touched BCS in the last 2-3 weeks.
Too late Gary, I already sold $1150 covered calls on all my shares for Friday. I also have two $1100cc that I rolled down and back from the Hertz fiasco.
In reality it doesn't matter, however it depends on the expiration in general.
For next weeks triple witching, there aren't really anything in the way of walls for max pain that would matter - 30k contracts at $1000 and $1100
but an example was 2 weeks ago when there were more than 100k puts at $900... now that's a wall.
In general *not advice* you should be able to trade around most things like weekly/monthly/quarterly expirations without worry if you are using your investment thesis and not just throwing darts at the board.
From what we have seen the past month and a half (even with Elon selling) that the 50 day SMA is solid resistance and also that $1k share price is very supportive.
Not to say make bets on that, as I feel uncertain about an actual floor above $850 but I have placing trades above that for quite a while.
So for some actual advice - if you are uncertain, don't place the trade. Just paper trade it, or if you have to, go with a small position to see how it worked out and the market dynamics.
Cheers
TheTalkingMule
Distributed Energy Enthusiast
Popped into this thread to give some not advice along the lines of what Gary was saying. My not-advice is the upside should be considered $1300 right now. If that's where we're likely to be post-4Q earnings, then it can happen at any moment as front-runners get moving and/or MM/shorts cover.
That mega dip pushed out all the weak hands and Elon may be done selling within a few weeks. Maybe the same shenanigans are pulled again once Elon sells the next couple piles of shares. But usually the same trick don't work twice.
My biggest concern is China numbers coming out tomorrow or Thurs, so I'm holding off selling anything 12/17 on the call side until late this week at earliest. Along the lines of @adiggs not-advice above, selling into strength is our advantage, we're the ones with an idea of what strength is for TSLA.
Best advice yet. I still remember selling my first CC (a few days before the S&P500 addition announcement). I managed to buyback for less than $300 profit, lucky. Not worth the risk.
Minor annectdotal note - i find it much easier to close spreads early when the raw dollar values are low. For example, I have a BPS open with 100 contracts that is at 75% for this week - but it's got 5 figures of raw dollars still open. I found it a lot easier to close the one that was at the same % but a smaller raw value. I really need to get over that particular hangup and just be smart and close it
I was thinking about exactly this to find strength to sell into for new BPS, but SP does not budge. I'm starting to consider today's level as close to the bottom we're gonna get and, while we're up and hence not strength for new BPS, still open new BPS today. What do you guys think?
No, I did not. Unfortunately.
I was too close to my margin limit that I’ve set for myself.
Opened 1205CC against jan 1100c that i added to on the dip.Damn, now you tell me, after I sold 65x 2/18 lcc1300's yesterday
Currently for every dollar i lose on those CC i get 20 dollar in added Value on the underlying call. Happy to cap that at 1205 for this friday
also only have 2/3rd of my calls covered.
TheTalkingMule
Distributed Energy Enthusiast
Kind funny to be up 4% and see that as the bottom, but for selling BPS 12/17 it may very well be.
+$790p/-$890p 12/17 for $5.50
+$840p/-$940p 12/17 for $11
Delighted with both today.
Will look for higher premiums on that same +$790p/-$890p 12/17 spread if SP drops tomorrow or later in the week.
Waiting to sell CCs later in the week. Hopefully after a China pop, but likely at $1200 regardless. Do I get $33 or $3? Who knows!
I am looking for a good opportunity to start rolling my 12/17 BPS 750/950. Not in a hurry. I will wait and see if there is a dip someday this week. Right now it is around $6/contract, which is not bad. $8 would be even better.... But if the SP doesn't drop, the value will decrease on me.
Like many here I have unloaded my BPS positions today. Now I have to practice patience and wait for a pullback to open next week’s BPS. Currently I am looking at 850 or 870 strikes but the premiums are terrible. As the WISE have advised to suck it up and stick to the plan so I may just have to do that.
I have +700p/-950p for 12/17, I sold this spread on the 9th of November, fleeing downward pressure. It was a panic roll that I may finally see settle. Beauty is they were 51.20 ... there's a lot to wait for. Curious why you are wanting to move out. Is there a bad sentiment for the 17th @ 950? I feel I can wait until next week at minimum.
BrownOuttaSpec
Active Member
If the dip doesn't come then I missed out on a little bit of Theta (I should have known you would chastise me for closing early in the week
️). I'm still new to this so I am trying to figure out my strategy. +85% is way better than the -60% that the position was 2 days ago. I knew I had Theta and a few "support levels" on my side so I just waited it out. 10% gain over 2.5 days (tues/wed/thus) seems a bit too stagnant since the last 5% would probably take all day Friday to decay. I feel like there is a dip sometime wed/thus that the +5-10% gain wouldn't be worth it holding for a few more days. <see below>I agree, Elon still 'needs' to sell this week so I feel the same way that the stock should drop or at least increase IV later this week.I'm expecting Elon to sell a pile this week, tomorrow, Thursday, both (?) so I think will go lower on that, but what the hell do I know...
Has tended to recover well from the sales events, I will admit, but with all the FUD right now...
And indeed CN numbers might bump things up a bit...
Whatever, looking quite frothy still, IMO
P.S. @BornToFly Please continue to comment on my strategy, I honestly do appreciate the feedback and think that is exactly why this forum is so beneficial, 100% serious THANK YOU!
P.P.S. If this doesn't make sense its because I've been drinking. Sorry.
I'm not worried at all about 950 on the 17th. I'm only rolling early for two reasons. 1) I'm getting good premiums. 2) I'm not worried about a prolonged drop going into Q4 delivery numbers in just over 3 weeks. (I'm not rolling down, just out). After Q1 ER later in January, I will probably go back to opening positions less than 10 days out to minimize the number of days the SP can go against my BPS.
FYI, on Nightly News tonight they had some preliminary data that suggests that the Pfizer vaccine is 40X less effective against Omicron. If that is the case, we could see a drop in the market. It is honestly my only concern right now with my 950 short legs.
Headlines are not reading that way.
Vaccines should work against Omicron, WHO says - BBC News
A small study in South Africa suggests the new variant could partially evade the Pfizer jab.
www.bbc.com
And everyone knows all that matters are the headlines. Let us see tomorrow AM. Seems nothing matters anymore past the last few minutes.
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