Wiki Selling TSLA Options - Be the House

[ChefBoyardee]

Made some moves today to free up more margin and add a little long-term leverage using leaps spreads - the pricing was much better than last time I did this. (I kind-of got screwed by mispriced options during my last shares -> leaps conversion)

Sold some stock in other companies I own
Sold some TSLA shares
Bought more 1500/1950 LEAPS for Jan 2024

At the bottom of the channel (1700) the leaps outperform by 12%. At the top of the channel (1950) the leaps outperform by 121%. Frees up 33% of the margin the shares use

 

[BrownOuttaSpec]

OMG. Missed by $1.50

It was missed BECAUSE of YOU! They saw that big order come in and they changed direction. Thanks from all the TMC community for your commitment (and 2 million dollars)

 

[FS_FRA]

Obviously we're going to close somewhere between $950 and $1000 today.

 

[BornToFly]

I'm assuming lots of people are buying calls now for next week, which should force the MM to buy shares at some point....

 

[BornToFly]

It was missed BECAUSE of YOU! They saw that big order come in and they changed direction. Thanks from all the TMC community for your commitment (and 2 million dollars)

I probably wasn't the only one. I shouldn't have used such a round number....

 

[M3Rider]

Bought 1/24 900c @350 and @360
Added 30 shares @955 for a round number, so I can sell a call.

Had more orders for
1/24 500c
1/28/22 1200c
That didn’t trigger

I was thinking we’re closing gap to 937, but for some reason that didn’t happen.

 

[Knightshade]

I'm assuming lots of people are buying calls now for next week, which should force the MM to buy shares at some point....

Possibly some of the shares they've got hedging the massive expiring ITM options this week for quad witching they can just carry forward for that? I dunno the second to second mechanics of how they do it though.

 

[Yoona]

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

thanks - i will definitely do that; managed to grab a few shares

 

[ReddyLeaf]

OMG. Missed by $1.50

We haven’t closed yet. My prediction of the 938-958 gap fill was “almost” dead on, so far. I picked up a handful of shares, the lowest one at $952.xx, while I was still sleeping. It’s possible that we continue down throughout the afternoon, so watch carefully. I still have a few more buys set, the lowest one at 924.xx, which had better not fill because that’s the last of my free cash. I need to save something to buyback and roll those DITM 1/28 puts. Edit: I use round numbers (like 1 or 2), just not as large as BornToFly. Next time try setting buys in 100 share increments, each at different prices.

Edit: Ok, @TheTalkingMule I just put in a buy 1/28 c1145s for $4.20.

 

[InTheShadows]

Ok. Fess up, who else sold nflx bps this am? Only 3, -360/300 for next week.

In other news, I never thought I would have to be managing my -980 spreads for this week. We were at 1073 when I opened them.

Thankful for the collective knowledge here and practice over the past year to remain calm when crap hits the fan.

 

[strago13]

FYI, I did roll my 1/28 980 puts to 2/4 at 960 on the bounce for a credit. Wasnt expecting to have to manage them.

 

[BornToFly]

My biggest fear for my 1/28 BPS is having Elon on the call. He could drop the hammer on a post earnings pop....

 

[CHGolferJim]

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.

Bought x00 this morning at $974 with the same idea in mind. The problem is once you start doing buy-writes, you realize you can roll and capture incremental unrealized gains and delay assignment at a higher price. I've been doing $30 OTM strikes recently and it's been working, but haven't had to contend with a big run-up. I'm telling myself I'll let the shares get assigned if I can't easily roll out of the way, and reload. Keeping to the discipline seems to be the key. Good luck, your gambit should work beautifully, and pay for many months of airtime. I'm going to wait until Monday/Tuesday and sto 2/4 to grab several weeks of IV, hopefully before the presumed post-ER crush happens.

 

[Knightshade]

My biggest fear for my 1/28 BPS is having Elon on the call. He could drop the hammer on a post earnings pop....

This is why my current plan is close all of them on a pop before the call.

This of course assumes we get the run up sometime in the 3 days before we're hoping for.

I DO expect the call to be sell the news because if Elon said:

We make eleventy pepsi trillion this quarter.
Both new factories are at full production as of last week.
I've cured cancer.
Cybertruck will be 72 hours late.

The headlines would only be about the CT being late and the algos will sell the news.

 

[TheTalkingMule]

My biggest fear for my 1/28 BPS is having Elon on the call. He could drop the hammer on a post earnings pop....

I'm not in the camp that think everything Elon does is "right", but it smells to me like he's been playing SP game here the last few months. Selling shares in a way that depresses SP, holding off on any updates or news that would spike the SP.

I could see a series of calm updates on the 4Q call that blow the roof off. This CFO guy has really reset Elon's way he sets expectations for Wall Street. It's been working great so far, and I think they're ready to unload on the shorts after quite a stretch of unaddressed shenanigans.

Exciting times.

 

[CHGolferJim]

OMG. Missed by $1.50

Don't get obsessed with limit orders when you have a good idea.

 

[bkp_duke]

My biggest fear for my 1/28 BPS is having Elon on the call. He could drop the hammer on a post earnings pop....

Completely agree. Such a wildcard, especially if he gets into things like "the Cybertruck is hard", etc. etc.

Also, same day, is Fed decision on rates. I fully expect a 1/4 point hike, but if the wording is dovish or hawkish, what will drive stocks in one direction or another. It's going to be a wild one on the 26th.

 

[TheTalkingMule]

I I put my roll order in wrong or something? Looks like I can roll my $1060/960 BPS from 1/28 to 2/4 for a slight credit, even with SP approaching $960.

Should I be jumping on this? My noob brain is telling me it's more logical to just burn theta and wait. Credit for the roll will be much better on say Wednesday morning if SP still manages to be around 960. Sound logic?

 

[vikings123]

My biggest fear for my 1/28 BPS is having Elon on the call. He could drop the hammer on a post earnings pop....

It is more dependent on macro imo. In any case I plan to de-risk some of my 01/28 BPS positions prior to the earnings call. Remember we also have the fed meeting on 01/26. If there is a pop I would expect it on Monday/Tuesday. Typically the two days leading into earnings are usually lower volume with trading in a tighter range.

I don't think earnings numbers will matter very much, it is all about guidance. I expect Zach to stick to his 50% long term growth guidance with upside in the short term. I actually like this washout before earnings, a lot of the speculative money will get out. I expect a neutral to bullish scenario post earnings. That said I plan to be cautious. Cash/Available margin is also a position.

edit: looks like your 950 order might get filled lol.

 

[UltradoomY]

Bought x00 this morning at $974 with the same idea in mind. The problem is once you start doing buy-writes, you realize you can roll and capture incremental unrealized gains and delay assignment at a higher price. I've been doing $30 OTM strikes recently and it's been working, but haven't had to contend with a big run-up. I'm telling myself I'll let the shares get assigned if I can't easily roll out of the way, and reload. Keeping to the discipline seems to be the key. Good luck, your gambit should work beautifully, and pay for many months of airtime. I'm going to wait until Monday/Tuesday and sto 2/4 to grab several weeks of IV, hopefully before the presumed post-ER crush happens.

Jim - you have learned and earned a lot over the past few months for sure and I am glad for it!

These are exactly the Buy / Writes I have been doing myself for a few months. It is kinda hard to let the shares go the first couple of times but after that it's not as bad.
Great premiums because you are so close to ATM and can roll for strike and premium credit - worst case is you have to hold on to more TSLA shares.... OH NO - lol
Not sure where I was going with this but just glad to see others using the Buy/Write strategy in the bag of tricks.