-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I have been trading options for 3 months and already feel too old for this stuff, haha.
I rolled all my naked puts that were underwater in the 1115 and 1050 expiring 14/1 one month out for a credit to give the time to the stock price to recover.
I initiated the transfer of my financial advisor account to my brockerage account to increase my margin by 30% which will give me more safety in the case the stock falls to the 730 Max Pain of Papafox doomsday post. But what I understand is that the LEAPs from those expiring calls were edged a long time ago. However, if you can increase your margin safety by 30%, why not do it? I felt it was the right time to do so.
Sold some 1255 CCs too for 14/1. I am expecting a +15% day when the stock recovers. It will be brutal.
kept my 20x -p945 14/1 and am waiting to see what happens.
Last edited:
thx, i got lucky last week
Jan 3 Monday when SP went up super crazy (120+?) as expected, i CLOSED all my BPS (yes, that's right) at 230pm to lock in all the gains.
The reason is because i remembered that last year Mon/Tue were frequent opposite directions, especially on fast Mon moves. Sure enough, SP crashed on Tue so I opened BCS at a peak. Macros fell big time on Wed and never recovered, so i kept the BCS all the way to Fri.
ChefBoyardee
Member
Bit of a personal post: What's kind-of funny is this market correction is also serving as a correction for my trading strategy.
I started premium-selling in May 2021 with 300k and a goal of 1 million in 1 year. I did near max margin each week, thinking if I lose it all, I've got many years to recover. Well, I hit 1.3m at the peak (woo!) and adjusted my strategy, using less margin and wider spreads, but my baseline was super high risk, so the adjustment still wasn't safe for the long term.
My goal once I hit my target was to buy Model 3s or Ys for my family, both to help with climate change and to give back. I finally told my dad that his son was a millionaire last week, and his reaction was "be careful" - quality advice
. He was just in a bad car accident, totaled, so this felt like the right time for the gift. This last week, I was way too confident coming out of P&D and am sitting at a 40% drawdown, which given the situation, is especially memorable.
Part of recovering from this position included rolling over half of my positions out to March and Sept, which normally would suck, but I'm looking at it as a hard reset. The new strategy (5% RoC and 33% margin) is meant for long-term success and rather than bringing in 30-40k each week, it'll be 5-10. And rather than stressing each week, I'll have more mental room to focus more on work and life.
This forum has been incredible during this whole journey, so thank you to everyone here. Looking forward to the rebound (which seems to be happening as a type), and a shiny new Tesla for dad, even if it's gonna have to be a few months late. Stay safe and don't get overconfident. Small compounded gains are better than rollercoaster rides.
Aaand now we're green!
I started premium-selling in May 2021 with 300k and a goal of 1 million in 1 year. I did near max margin each week, thinking if I lose it all, I've got many years to recover. Well, I hit 1.3m at the peak (woo!) and adjusted my strategy, using less margin and wider spreads, but my baseline was super high risk, so the adjustment still wasn't safe for the long term.
My goal once I hit my target was to buy Model 3s or Ys for my family, both to help with climate change and to give back. I finally told my dad that his son was a millionaire last week, and his reaction was "be careful" - quality advice
. He was just in a bad car accident, totaled, so this felt like the right time for the gift. This last week, I was way too confident coming out of P&D and am sitting at a 40% drawdown, which given the situation, is especially memorable.Part of recovering from this position included rolling over half of my positions out to March and Sept, which normally would suck, but I'm looking at it as a hard reset. The new strategy (5% RoC and 33% margin) is meant for long-term success and rather than bringing in 30-40k each week, it'll be 5-10. And rather than stressing each week, I'll have more mental room to focus more on work and life.
This forum has been incredible during this whole journey, so thank you to everyone here. Looking forward to the rebound (which seems to be happening as a type), and a shiny new Tesla for dad, even if it's gonna have to be a few months late. Stay safe and don't get overconfident. Small compounded gains are better than rollercoaster rides.
Aaand now we're green!
bkp_duke
Well-Known Member
thx, i got lucky last week
Jan 3 Monday when SP went up super crazy (120+?) as expected, i CLOSED all my BPS (yes, that's right) at 230pm to lock in all the gains.
The reason is because i remembered that last year Mon/Tue were frequent opposite directions, especially on fast Mon moves. Sure enough, SP crashed on Tue so I opened BCS at a peak. Macros fell big time on Wed and never recovered, so i kept the BCS all the way to Fri.
Start a hedge fund, I'll send you my $$$ and pay you to invest it.
EDIT - you guys/gals are marking this funny. I'm only 1/4 joking.
Yes, me too, I have just move money from my old financial advisor, I need someone to manage that money in option trading properly. I closed all my positions at the peak Monday but opened new ones too early when the SP was $1140. Was not patient enough. I wrote my 1M check to Yoona’s hedge fund, just tell me where to send it, as long as you don’t take more than 50% management fees that’s ok, the profits should still be more than mine ;P
I too believe we will end the week above $1000, but have no interest in gambling.
To those that are pessimistic in this regard, would you dare sell $1000 1/14 cc's? That's right
Or just keeping your powder dry.
Rolling forward in time is the same trade with a small increase in credit and hope time makes you out to be a genius.
scubastevo80
Member
1/14 position updates - closed our -950/+900 BPS for a 10% gain (wanted to free up margin).
Rolled -1050/+960 to 1/28 same strikes for a credit of $0.10.
Rolled our -995/+900 to 1/21 -985/+890s for $2 credit.
If we touch below $1k again, looking to buy a $1000 1/19/24 and sell the $1400-1500 against it (net cost of approx $10-12k) due to limited capital. Any thoughts against doing this to capture upside over '22-23?
Rolled -1050/+960 to 1/28 same strikes for a credit of $0.10.
Rolled our -995/+900 to 1/21 -985/+890s for $2 credit.
If we touch below $1k again, looking to buy a $1000 1/19/24 and sell the $1400-1500 against it (net cost of approx $10-12k) due to limited capital. Any thoughts against doing this to capture upside over '22-23?
I’d do a look back and see what the $1000 LEAPS were doing when we were trading at $900 and below.. see if it warrants waiting for a deeper underlying pullback or not.
Flehmenlips
Member
A bit of experience with margin calls: Always call your broker if you can. TDA is very responsive and helpful. I think in general, the brokerage is on your side. It is not in their best interest to forcibly liquidate their "paying" customers and they will work with you as much as is possible. I always ask for the due date on my margin call. It is usually about 5 days away. Of course this is not a hard date and you can be forcibly liquidated at any time. However, my experience is that has never happened. Usually you will appreciate out of the margin call position within that time period. If it is not looking good, you can often take other evasive maneuvers such as depositing cash, generating some premium, selling some equities, buying some protective puts to decrease your maintenance requirement, etc. Another super helpful tool is the "Explain Margin" tab in ThinkorSwim (TDA). It also shows you your PNR value (Point of No Return). It is possible to get this value to a level that will protect your account fully against a SP drop to $0 with protective puts (If I understand it correctly. Others please correct me if wrong) I have an unfortunate habit of surfing my margin balance and have an uncomfortable amount of experience dipping in and out of margin calls. I realize this is a dangerous post. Cheers!
Did a small play with my 10x 1100CC for this friday (backed by 1050C for 21/1).
STO @9.99, BTC @ 6, STO @8.37. BTC-Order for 5.50 is online with following STO @9.00.. Lets see if it triggers.
Also it gains 2400$ Theta/day while it is open
STO @9.99, BTC @ 6, STO @8.37. BTC-Order for 5.50 is online with following STO @9.00.. Lets see if it triggers.
Also it gains 2400$ Theta/day while it is open
The assumption is that the BPS portion was in excellent shape. Curious why you'd add the BCS to form IC for what seems to be little RoC or retrun based on loss possibility. I agree it there's low probability of hitting either side. With price at 1028, it's .97 for a potential loss of $9,903.
I don't have either open, just want to learn more.
Did nothing with my 1/14 490/990 BPS (on margin).
This was easy since I just went for a nice long interval run which caused the stock price to go up
My Jan 23 600/800 BPS (on cash) meanwhile just sitting there unfazed.
This was easy since I just went for a nice long interval run which caused the stock price to go up
My Jan 23 600/800 BPS (on cash) meanwhile just sitting there unfazed.
corduroy
Active Member
Please keep running.This was easy since I just went for a nice long interval run which caused the stock price to go up
bkp_duke
Well-Known Member
Forrest Gump style please.
I am proud to report that so far today I did absolutely nothing with my positions. (Except for a couple of calls I bought and then sold for a small profit.. oops.)
Would love to see 1100 on Friday. Let's see what these dastardly gubmint statistics show this week.
Would love to see 1100 on Friday. Let's see what these dastardly gubmint statistics show this week.
the BCS was for 'gravy' income because i am thinking 1200 close is very unlikely and probability of success is very high
changed my mind and closed it already
$2k quick profit more than enough to pay for my $792 Costco bill
this morning
Rolled my 1/21 BPS -990/+790 to 1/28 BPS -970/+770 @ 6.1 to get past Q1 financials. The open interest for 1/21 with max pain is so low, 750. Could be just too far into the future for a weekly but I'm happy to roll a bit early this week.
Flehmenlips
Member
My cost basis for core shares is very high, $1143. I am considering closing all of my spread positions (at a modest profit) and using the resulting cash/margin position to only sell weekly aggressive naked puts going forward at 5-10% OTM to generate decent premiums, rolling as necessary, but with the goal of eventually getting assigned at a more favorable price in order to DCA my core share position. I would continue to carefully sell ccs and lccs on core shares/LEAPS with the intention of getting back into selling spreads once I feel more comfortable with my core share cost basis.
Similar threads
