Happy New Year to everyone here and what a fabulous start to 2022!
Today was my first day back to trading since Dec 14th - was traveling for work and then vacation, so as I had mentioned before, took a break from trading. I had rolled out all my positions to Jan 7 or Jan 14, 2022 before signing off for the year. When I rolled out the BPSs in my accounts, I took big losses for 2021 in the investment account as well as the IRA account. I had kept the high strike prices on the BPS, as it was fully expected that Tesla would beat P&D targets! Further, I used the uncommitted cash in the IRA to purchase some safe long calls with 550 strike for Jan & Feb. (Copying my previous message below for reference).
Well, today was such a great day of vindication in our faith in Tesla's performance! I closed out all my BPSs for Jan-7 as well as Jan-14 at 85-95% profit - these were 50X each of -p1010/+p800 and -p1050/+p850. In addition, I also closed out the long calls for 14Jan @550 strike price for 90% profit. Total realized profits were significantly >500K even after taking the losses from Dec into account. Not bad for 'vacation pay'
. Every time I see these kind of numbers for realized profit in my account - I still can't believe how this is legal! And why the heck did I not know about this sooner in my life!
Anyways, with the SP running this fast, did not open any new BPSs. I am however slowing dipping my toes into CCs and LCCs again. I am one of those here who are now gun-shy about selling calls - my first big week trying out BCS turned out to be the the Hertz run-up week. After taking the massive losses on those positions, I was keeping away from selling calls. But after today's run-up, strikes above 1350 for 7Jan and above 1400 for 14Jan seen reasonable. Also, since I have plenty of stock and LEAPS, planning to sell CCs and LCCs against those instead of BCSs. I opened small positions for 7Jan for -c1360 and 14Jan for -c1420. Lets see if these are safe this time, if not - well that would mean the SP is above 1360 and the rest of my account makes me a very rich lady!
I see everyone here is doing great with being the house and more folks are slowing venturing back to the BCSs and CCs too. Fun times are ahead for all of us - hope 2022 will be even bigger year for TSLA and Tesla than 2021 was!
Have been traveling the last couple of weeks, so not posting much although was trying to keep the trading going. Turned out to be not such a good idea - very difficult to manage positions when you are in a different timezone and brain keeps miscalculating the time when the market closes.
Anyways, I am of the similar mindset - in my case last week Friday I rolled out almost all positions out to Jan 14 for credit. Since that means I closed out the positions for 2021 all at big losses, this is an advantage in taxes for this year. Plus, with holidays coming up we will be traveling and have guests etc. so don't want to worry about managing positions till end of the year. These are all BPS with short strikes at 1050 and 1010 with spread of 200. So currently deeply deeply in the red. It is amazing though how calm I am thanks to this group and all the learnings here!
Anyways, since I am done with trading for rest of the year, the SP is so far down and IV is not that high I decided to use some of my excess cash that is not tied up for the BPS to buy some call options. I’m expecting the stock will recover between now and end-January so choose to go with the ITM February options at 550 strike. The extrinsic cost on these was $6 so seems like a reasonable deal for getting about 2X leverage compared to buying stock.
So hoping for a good recovery for 4Q ER
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