I opened some positions for next week with the highest strike BPS at 860/780 down 50%. I am trying to play it safe with the slow and steady mentality.
-
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 use to have the same thoughts so I started to roll my most at risk earlier instead of waiting. Rolled a 1,110 expiry tomorrow to 1,085 expiry 1/28 and got $200 credit. Seeing AH action, seems unlikely I would've been able to do the same trade tomorrow.
My pleasure. You can remind me later when I forget.
scubastevo80
Member
Is this naked - assume you did this at today's highs? I just checked EOD numbers and $200 wide spread rolls for a 1/21 1110/910 to 1/28 1085/885 would cost north of $17. Cost of naked roll would be $8.25.
Yes, this is naked. Lucked out on timing and caught it at today's high. Looking at maxpain during this week and saw large call walls at 1000, 1050, 1100, and 1200, so didn't feel confident we would get close to 1100 by end of tomorrow.
Flehmenlips
Member
Ugh. I am also kicking myself for waiting until tomorrow to roll a couple of my 1/21 spreads. AH indeed looking scary. I was so naïve thinking I could make a decent "passive" income playing this options selling game! Ahahahahahaha! It requires way more attention than my farming job! Elon frequently says "Space is hard." He clearly has never traded options! Haha! Here's hoping for a gap up tomorrow morning...
For folks with ITM puts be careful tomorrow especially if you don’t have much margin left. Maybe close or roll them early in the AM.
I had 4X 60$ $FOUR 01/21 puts that I had sold last month. I just got assigned after hours. Normally I would see these getting assigned AH on the day of expiry.
I had 4X 60$ $FOUR 01/21 puts that I had sold last month. I just got assigned after hours. Normally I would see these getting assigned AH on the day of expiry.
Everyone, newbie or seasoned pro, should read every one of @adiggs ’ posts. Usually verbose, but always full of excellent advice. If you don’t understand today, keep reading until you do. I don’t trade spreads, but your current trades look very problematic to me. I’m rooting for you, and looking forward to reading how you resolve this week’s crisis.
Sorry Mule, the bastards got you. I sold c1055s for $7.20 around noon today and they are now showing $0.95 after close. I never expected such a dramatic drop, but have had better than moderate success with similar trades in past weeks. This is a technique that I’ve borrowed from @Yoona’s IC sales (waiting until Wednesday or Thursday when theta is greater and the SP target is relatively obvious). These are fully backed CCs, so no margin or leverage, and not a huge amount of profit (well, enough for my monthly living expenses or a handful of shares). I will bank the cash and wait for that 938-958 gap.
Last edited by a moderator:
TheTalkingMule
Distributed Energy Enthusiast
You haven't won squat til you close! Tho it's looking pretty darn good.....lolSorry Mule, the bastards got you. I sold c1055s for $7.20 around noon today and they are now showing $0.95 after close. I never expected such a dramatic drop, but have had better than moderate success with similar trades in past weeks. This is a technique that I’ve borrowed from @Yoona’s IC sales (waiting until Wednesday or Thursday when theta is greater and the SP target is relatively obvious). These are fully backed CCs, so no margin or leverage, and not a huge amount of profit (well, enough for my monthly living expenses or a handful of shares). I’m will bank the cash and wait for that 938-958 gap.
This might be $420 down the tubes, but for the record I wanted to buy at the open and could have sold at 2x around 11am. I then forgot the order was there and it executed. Whoops!
At least it was only one spite contract. I'm still holding out hope for a $4.25 sale tomorrow!
No fear tomorrow. We drop lower I'm levering up. Not crazy yolo calls, just rational ITM LEAPs.
OK, who knew Led Zeppelin was singing about options trading?
My sister, she taught me to roll
My sister, she taught me to ro-ooh-oll
How to roll down to the light
Nobody's fault but mine, oh
Jimmy Page & Robert Plant – Nobody's Fault But Mine
My sister, she taught me to roll
My sister, she taught me to ro-ooh-oll
How to roll down to the light
Nobody's fault but mine, oh
Jimmy Page & Robert Plant – Nobody's Fault But Mine
Cross quoting from the main thread. Still a noobie but lowering IV sounds like a downer for options traders. Are others here concerned about TSLA becoming investment grade? Would this be a gradual change or a light switch?
I mean people said the same thing when Tesla got into S&P. As long as we have TSLA Uber bulls and TSLAQ, market makers and hedge funds will keep it volatile and play both sides. IMHO.
Opening up a large amount of buying power combined with TSLA growing into its buying it’s fundamentals will mean less volatility, especially to the downside. It will b backstopped by lagging buying power.
There will still be IV because you’ll still have Uber bulls willing to buy far out of the money calls and betting on short term movements. But I doubt you see the spread that we’ve seen in the past
Last edited:
I’m thinking about it, though will likely wait until Friday afternoon, or maybe even Monday. Remember, the MMs are already fixing options prices (where do you think “implied volatility” comes from?). Buying options just fits in with their plan. You need to be nearly certain. I myself have a very poor record on buying short-term calls, maybe winning 1/4 of the time (though those wins can easily be 10x like @TheTalkingMule ). Certainly don’t bet the farm, at most <1%. However, buying long-dated, DITM LEAPs, is much more certain. I’ve seen people interested in Jan 2024 c500s or similar, and those are probably a better bet.
Edit: Historically, it’s a great time to buy when the difference between the upper and lower Bollinger bands approaches 10%. Currently sitting at (1162.72-970.57)/1066.65=18%, so still a bit high, but not too bad.
Last edited by a moderator:
Someone in another place has been talking about a trade he is putting together.
Please tell me why this is a good/bad idea. This is not my trade, but I have thought about following it. If you're certain TSLA will be over $2,000 by 1/2024 I don't see how opening a DITM LEAP put credit spread would run against you but I don't know what the risk of early assignment on something like this is either.
Comments?
Please tell me why this is a good/bad idea. This is not my trade, but I have thought about following it. If you're certain TSLA will be over $2,000 by 1/2024 I don't see how opening a DITM LEAP put credit spread would run against you but I don't know what the risk of early assignment on something like this is either.
Comments?
Whelp….I was scheduled to fly home from a business trip yesterday during the closing hours of trading. I had set an I-dare-you order @ $990 for some more chairs during the morning run-up. Mainly for fun, as I’m accumulating odd lots to fill the next 100.
Imagine my surprise when I got off the plane and saw it had filled.
My 1/28 -910/+710 is obviously looking poor-lier, however I’m still betting (whoops, that word) for a run up pre-ER and a close in quadruple digits end of next week. If we stay below $1000 I’ll look to accumulate more on dips to fill the 100 lot.
A roll to February will hopefully not be required for my BPS.
Today is going to be a messy day, I believe.
Imagine my surprise when I got off the plane and saw it had filled.
My 1/28 -910/+710 is obviously looking poor-lier, however I’m still betting (whoops, that word) for a run up pre-ER and a close in quadruple digits end of next week. If we stay below $1000 I’ll look to accumulate more on dips to fill the 100 lot.
A roll to February will hopefully not be required for my BPS.
Today is going to be a messy day, I believe.
It's going to be interesting. I have 2x 1000/900bps for today. Looking for a morning rally to possibly roll to safer 990/890 or next week.
I like it. Max loss is only about 20k and if using margin this only reduces buying power by about 2k. In terms of early assignment if it were to occur your broker would in turn exercise a corresponding $1900. For each option that would result in a possible $10,000 loss. This is offset by the premium you collected of $8,725 per contract. So in theory you could be on the hook for $1,275 per contract or a max of $19,125. Highly unlikely for early assignment in the near term. For instance if someone were to buy shares at 995 now and buy one of these puts for $1,108 they're spending $2,103 per share to sell it at $2,000.
Personally I opened up Jan 2024 bull put spreads at 1300/1400 and decided to sell about $20k worth of these every other week to spread out my sales over time. Once share price climbs past 1300 I'll adjust and start selling bps a few hundred over the current share price and initiate my same trades.
Similar threads
