Wiki Selling TSLA Options - Be the House

[Discoducky]

Morgan Stanly has always sucked.
i think they will be pushing for more fees for Etrade customers
Are you a platinum client?

Yep, but haven't really utilized any Platinum features...

 

[Knightshade]

That 240x was bought I think in 2019, like the next day after the 1/22 expiration date was added. So, holding 2+ years. Will be exercising tomorrow all my 1/22 and 6/22 calls. Sold today a bunch of short term shares I held as savings to pay for them.

Playing this LIFO game where I have to pop the latest/expensive shares from the stack, push the low cost basis shares from exercised calls into the stack, then can start pushing expensive shares back on top.

Had an issue in the past when I sold first, then exercised later on the same day and broker recorded the exercised shares as the ones that were sold, because to them LIFO means last shares even if those didn’t exist when I sold. Had to fight them for a while to fix that, so now need to make those transactions on different dates to avoid that.

Sucks big time I didn’t sell at 1200, but was hard to know. We were so sure Q4 would mean a big pop and now macros are in the crapper. Anyway, that was just cash parked in shares, so I didn’t lose anything, but could have made more.

AFAIK you can tell the broker which shares you want to sell when you sell shares... most platforms let you pick specific lots if you wish, or if you've on a crappy platform that doesn't should be doable over the phone.

 

[stealthyc]

AFAIK you can tell the broker which shares you want to sell when you sell shares... most platforms let you pick specific lots if you wish, or if you've on a crappy platform that doesn't should be doable over the phone.

To be more specific brokers (at least TD) let you adjust the lots up until settlement so you have a couple days.

 

[strago13]

Morgan Stanly has always sucked.
i think they will be pushing for more fees for Etrade customers
Are you a platinum client?

Also use eTrade. I havent been contacted by them once and I am 100% TSLA. To be fair, I was Capital One 360, which got bought by eTrade, then Morgran Stanley and I have all kinds of weird artifacts on my account from those 2 mergers.

 

[AquaY]

Yep, but haven't really utilized any Platinum features...

You don't get much. You're supposed to have a dedicated line and team. I hear that it is better customer service than calling the regular line.
But they don't know much of what they are doing.
But you should have had an assigned rep that called you.
When you log on to etrade there should even be a pic of your rep and his name.
You might want to call and ask why they were offering you that.

 

[AquaY]

Also use eTrade. I havent been contacted by them once and I am 100% TSLA. To be fair, I was Capital One 360, which got bought by eTrade, then Morgran Stanley and I have all kinds of weird artifacts on my account from those 2 mergers.

I had an etrade account and a Brown & Co account. Brown was bought out by Etrade. Brown had better margin rates and at the time commissions. Etrade had to honor my Brown & Co rates

 

[doddiozil]

Hi and welcome.

A practical tip I give out once in a while to newcomers is to install a phone app with price alerts.

Personally I use "WeBull" which is free, accurate and easy to set up. After I sell my puts/calls for the coming weeks I set price alerts for when TSLA goes above a certain stock price (i.e. TSLA nears my closest covered call strike price) and for when TSLA drops below a certain stock price (i.e. TSLA nears my closest short put).

I find this provides some peace of mind. It turns "having to check the SP regularly" into "I only check the SP when I want to". Helps me to focus on my day job better. If I don't receive a price alert, my positions are fine and don't need correcting. This can also help with overtrading.

Good luck on your travels on the road of options.

From my understanding the "rolling" option is not available on Webull. What do you do to mitigate that?

 

[jeewee3000]

From my understanding the "rolling" option is not available on Webull. What do you do to mitigate that?

Webull is not my broker app. I don't trade using Webull, nor does it know my positions/portfolio.

Webull is just a handy app to follow the tickers of your favourite (US) stocks and to set price alerts. (My broker has the same features but it doesn't work as well)

 

[BornToFly]

Insane amount of great responses from those who chimed in on my original post. I really appreciate the sentiments and will be sure to update you when I begin.

And I also appreciate the feedback regarding "set and passively monitor". I do understand the importance of watching the trade play out, and you're right in that you can never assume 20-30% out is enough given a specific timeframe. Only thing on my side from the selling puts end is that I wouldn't mind getting called and can afford to purchase the stock, however I would want to be quick to roll in the event I didn't want to assume that position.

Thanks so far!

Great posts from others to your original question. The only things I will add:
1) If you want set and forget, look into selling Puts that expire 1-2 years out. You leave a little more money on the table compared to weeklies, but you don't have to manage those until you get close to expiration, or they get REALLY far ITM. (They will be taxed as short term capital gains even if you sell more than one year out, so don't let different tax considerations into your equation).
2) If you start doing this, it is important to not panic as soon as your Put premium goes against you. A friend of mine sold his first Put without talking to me, and the stock immediately dropped 5%. He was still OTM, but completely panicked and bought it back for a loss. Learn how to roll correctly if you start selling options or you will quickly lose everything.
3) Don't get greedy and chase premiums or you will get burned eventually.
4) This is harder than it looks, so learn a lot before risking too much money.

Welcome to the forum and keep asking question.

 

[FS_FRA]

I just put a buy order in for more TSLA chairs at 999 - the SP should go up now.

You're welcome.

 

[BornToFly]

I just put a buy order in for more TSLA chairs at 999 - the SP should go up now.

You're welcome.

It works better if you sell all your shares at the current price to buy on the dip. Please try that....

 

[TheTalkingMule]

Transparent pushdown in the extreme. Such obvious desperation gives cash rich investors a great spot to buy/sell options for next week.

I don't see any way TSLA stays below $1060 today or $1100 tomorrow. At least in the neighborhood. Not advice, obviously just guessing.

 

[wooter]

Transparent pushdown in the extreme. Such obvious desperation gives cash rich investors a great spot to buy/sell options for next week.

I don't see any way TSLA stays below $1060 today or $1100 tomorrow. At least in the neighborhood. Not advice, obviously just guessing.

I'm honestly guessing that with call wall pressure, we will land at 1030 by Friday.

 

[FS_FRA]

I'm honestly guessing that with call wall pressure, we will land at 1030 by Friday.

Based on options volume I'm thinking they'd be aiming for 1030 - 1050. It will be interesting how the call side unwinds the closer we get to EOD Friday.

 

[Discoducky]

You don't get much. You're supposed to have a dedicated line and team. I hear that it is better customer service than calling the regular line.
But they don't know much of what they are doing.
But you should have had an assigned rep that called you.
When you log on to etrade there should even be a pic of your rep and his name.
You might want to call and ask why they were offering you that.

Yep, that is there and I've talked to them, but it hasn't been very helpful. And they automatically added me to that due to the overall size of the capital I have with them.

 

[FS_FRA]

Am I the only one that thinks put premiums are juicy for 1/28? I'm considering rolling my 1/21 -970/+770 to -900/+700 for currently around $2.8. -910/+710 is to be had for $4.8 !

EDIT: rolled the 1/21 -970/+770 to 1/28 -910/+710 for $4.6 (missed the bottom / IV spike top, but still happy).

Now bring on earnings!

 

[corduroy]

STO some 1/28 710p/-810p @$2.80

Also an "I dare you" (for me anyways) 800p/-900p for $9.25

I may be too early on these but premiums are good.

 

[stealthyc]

Am I the only one that thinks put premiums are juicy for 1/28? I'm considering rolling my 1/21 -970/+770 to -900/+700 for currently around $2.8. -910/+710 is to be had for $4.8 !

Well IV has spiked in the past few minutes. I very nearly sold some ATM naked puts ($50 each) at around 1004, but then it started to go back up, so I held off

 

[st_lopes]

Am I the only one that thinks put premiums are juicy for 1/28? I'm considering rolling my 1/21 -970/+770 to -900/+700 for currently around $2.8. -910/+710 is to be had for $4.8 !

That’s the power of earnings week IV.

Haven’t done much yet other than clipped 34x 1380 cc’s at 90% yesterday.

Still holding on to 1000/950 BPS and 1170/1080 BPS for this week.

Current game plan is to close the 1000/950 then roll and widen the 1170 (hopefully to get it under 1100) to try to take advantage of IV for next week.

We’ll see if we get a retest of 1000 today. If that breaks down, my game plan will shift to more aggressive rolls in to next week.

 

[ninpb]

STO 11/28 900/800 BPS.