Wiki Selling TSLA Options - Be the House

[UltradoomY]

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?

Not really a big deal - all last summer we were dealing with IV in the 30-40 range and doing quite well. Because you could be closer to the strike and not worry as much about +/- $100 days.
With the higher IV now you can be much farther away but still have to sweat it due to macro and bond yields, etc.
I for one would welcome the summer time IV of 30-40 again and be able to walk away from the screen..... (I wouldn't but it's a nice thought)

 

[jeewee3000]

Given the weakness of the stock since I opened my 1400cc and 1450ccs expiring 1/28, I'll probably close these around 75%-80% profit today so that I can sell cc's again next week when the ER FOMO runup starts happening.


EDIT:
I pulled a @TheTalkingMule and bought some 1/28 1200 calls @2,5, with the sole intention to sell these next monday, tuesday or wednesday. I strongly believe we go back above $1000 after the weekend. Also I don't want to experience IV crush on these so by Wednesday I want to get rid of them.

Shame on me for this yolo purchase.

 

[wooter]

When should this risk muscle trigger to do something with my Jan21 1000/900bps?!

 

[BornToFly]

I placed an order to buy 2,000 shares at 950. If the order hits, I'm immediately selling 20 covered calls for next week with 1,000 strike.

 

[Yoona]

I placed an order to buy 2,000 shares at 950. If the order hits, I'm immediately selling 20 covered calls for next week with 1,000 strike.

that's very interesting, why didn't i think of that...

 

[corduroy]

My STO BPS 2/4 -770/670 for $5 actually filled!

Edit: and now headed to $6. Always too early.

 

[wooter]

When should this risk muscle trigger to do something with my Jan21 1000/900bps?!

I rolled to next week 1000/900bps. Since it's ITM another 2K credit.

 

[Bunky]

Rolled everything to next week. Live to trade another day. This is ridiculous.

 

[TheTalkingMule]

Given the weakness of the stock since I opened my 1400cc and 1450ccs expiring 1/28, I'll probably close these around 75%-80% profit today so that I can sell cc's again next week when the ER FOMO runup starts happening.


EDIT:
I pulled a @TheTalkingMule and bought some 1/28 1200 calls @2,5, with the sole intention to sell these next monday, tuesday or wednesday. I strongly believe we go back above $1000 after the weekend. Also I don't want to experience IV crush on these so by Wednesday I want to get rid of them.

Shame on me for this yolo purchase.

I'm trying to find a mix of LEAPs I like so i can convert some shares, but they just feel too expensive still. May have to just ride it out. DEFINITELY buying some 1/28 and 3/18 YOLOs today! Very very few tho, not enough to get my BPS club membership card rescinded.

 

[wooter]

I placed an order to buy 2,000 shares at 950. If the order hits, I'm immediately selling 20 covered calls for next week with 1,000 strike.

Ya gonna get lucky soon.

 

[TheTalkingMule]

All my 1/28 BPS are now fully ITM. I'll roll next week or today if/when we recover to $1000 or ride them thru earnings if we somehow don't. Gonna be a nail biter!

 

[mnno]

My STO BPS 2/4 -770/670 for $5 actually filled!

Edit: and now headed to $6. Always too early.

Don't feel bad, I opened a 2/4 BPS -780/+680 today for $4.95

 

[Knightshade]

I'm trying to find a mix of LEAPs I like so i can convert some shares, but they just feel too expensive still. May have to just ride it out. DEFINITELY buying some 1/28 and 3/18 YOLOs today! Very very few tho, not enough to get my BPS club membership card rescinded.

$550 Jan 2023 are $459 as of this post (SP $959) so you can exchange shares ~2:1 and they are break even at $1009 and have ~1 full year of time left.

How cheap are you hoping things get?

 

[BornToFly]

that's very interesting, why didn't i think of that...

If you have more courage, wait until bounce on Monday to sell the CC....

 

[TheTalkingMule]

$550 Jan 2023 are $459 as of this post (SP $959) so you can exchange shares ~2:1 and they are break even at $1009 and have ~1 full year of time left.

How cheap are you hoping things get?

Thank you for this. I was looking out at $1200-1400 for 2024 and treating them as cash. True conservative LEAP conversions are what you've posted above. I'll go with something like that I guess.

And I can sell CC's against these in my Fidelity IRA, no? I'll go look it up to confirm.....

 

[vikings123]

I placed an order to buy 2,000 shares at 950. If the order hits, I'm immediately selling 20 covered calls for next week with 1,000 strike.

Looks like your order is acting as good support

 

[Knightshade]

Thank you for this. I was looking out at $1200-1400 for 2024 and treating them as cash. True conservative LEAP conversions are what you've posted above. I'll go with something like that I guess.

And I can sell CC's against these in my Fidelity IRA, no? I'll go look it up to confirm.....

Assuming you have the fake/limited margin in your IRA then yes you can- I've done exactly that against my own DITM LEAPs there.

They're essentially treated like spreads (which of course they are)


Anyway yeah the reason I prefer DITM leaps is apart from making it easier to ride out dips and still sell CCs, you're paying vastly less for the time value than you are OTM ones.

 

[BornToFly]

I placed an order to buy 2,000 shares at 950. If the order hits, I'm immediately selling 20 covered calls for next week with 1,000 strike.

OMG. Missed by $1.50

 

[FS_FRA]

In for some more chairs at $970 - this is ludicrous. Missed the @BornToFly bottom at $950. If we see $960 again today, I'll have filled my next 100 lot.

Considering to YOLO a 1/28 CC to celebrate. $1000 or so

 

[juanmedina]

$550 Jan 2023 are $459 as of this post (SP $959) so you can exchange shares ~2:1 and they are break even at $1009 and have ~1 full year of time left.

How cheap are you hoping things get?

Thanks for the heads up, I did some shares/Leaps conversion. Crazy that I am worried about my $860/770 BPS for next week lol. Remember IV crush is on our side.