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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
bkp_duke
Well-Known Member
Sold 8 x 780/830 BPS for 1/28 @ $6 on this stupid drop. Last of my dry powder.
Do you have margin to widen? You will probably make good money rolling to Dec 16 and doing 1100/800. Try other combinations. I've learned that having some margin to widen spreads will allow you to roll out for credit.
gabeincal
Active Member
Incorrect. I rolled -17 x 1160p's by a week for $5 credit earlier on Monday. That was around 900 SP, therefore 260 ITM.
Interesting observation regarding LEAPS. As the SP drops, it gets cheaper and cheaper to Roll them further ITM. Always a net debit, but you can buy say a $100 strike improvement for less cash at a $900 SP than at a $1000 SP.
TheTalkingMule
Distributed Energy Enthusiast
This is where I want to get to. Selling BPS for the purposes of acquiring cheap shares.
I was looking around trying to buy cheap calls for Friday or 2/4 and none were to be found.
On the earlier spike I rolled some of my 1050/850s to Dec 1100/800 for what comes out to about $2/week in credit. Not too bad because $2 week can be hard to do if you want to stay 20% OTM. I do think we will be over 1100 in December.... 
Trying to do another set if there is a last spike before earnings. Otherwise I have to just pray we are higher tomorrow.
Trying to do another set if there is a last spike before earnings. Otherwise I have to just pray we are higher tomorrow.
I sold $975 for 1/28 yesterday in a buy-write ($974 cost basis, 1/21) for a sweet $30 premium and guaranteed 3% return in 7 days assuming no SP decline. Likely will roll out a week (+$30, $3 credit) to capture incremental capital gain if SP >$975, but there was ~$20 premium delta vs. $1050's at the time which I now have in hand to work with in the roll decision.
I've modified my HODL and Calls Strategy (don't do puts and spreads) to sell against
- 35% of held shares --> aggressive strikes within buy-writes that I'll allow to assign if SP soars out of reach, roll when possible to capture incremental capital gains
- 30% of held shares / 47% of core shares --> very cautious strikes 15% to 20% OTM that I will roll come hell or high water
- LEAPS with approximately equal level of delta as core shares
- occasional impulse anger purchases on dips of 4-8 month calls generally $150+ OTM for capital gains prior to expiration
Last edited:
chiller
Member
Got a warning from IBKR on the AH dip that I'm getting close to my margin limit... Should have bought some protective puts before market close.
SG&A has a 600 million hit due to Elon's 2012 option exercise (340M) and the final two 2018 tranches becoming probable (256M).
So $0.60 one time hit to earnings per share, give or take.
So $0.60 one time hit to earnings per share, give or take.
I did. 5 x c1165 for $3.00 and 5 x c1150 for $3.50. It’s crazy that you could get such high premiums for strikes that are 20-25% OTM with just two days to go, even with earnings coming up.
AH: despite of this I had hoped (for my sold puts) for a more positive reception of the report.
dc_h
Active Member
The forward PE at 1000 in Dec 2022 will be 20 to 25, assuming they're making 10-12 a share. That is an insane valuation. I think TSLA>1100 is a smart bet.On the earlier spike I rolled some of my 1050/850s to Dec 1100/800 for what comes out to about $2/week in credit. Not too bad because $2 week can be hard to do if you want to stay 20% OTM. I do think we will be over 1100 in December....
Trying to do another set if there is a last spike before earnings. Otherwise I have to just pray we are higher tomorrow.
dc_h
Active Member
Green, f*'ing green. The same algo's crushing MSFT after the market yesterday seemed to have hit TSLA tonight. The earnings report is great. I'm still holding my breath and my mouse finger on 1/28 960-860 and 950-850 BPS.
so glad i rolled my 1050/950 BPS to 1060/960 BPS for free 2 minutes before close ^^
They will be down massively tomorrow due to IV-crash .. BUT they got 9 days instead of 2 to recover
Hope that elon makes *some* announcement on the call ....
Of course that means Putin needs to behave another week.... Hopefully the Olympics hold him off a while longer....
General comment - keep in mind that the quality of the available rolls is really, really dependent on the IV. A year ago I had 770ish naked puts with a share price of 700 (and kept going down) ... those puts couldn't be rolled for a strike improvement and a credit of any kind. The 1 week roll credits were more like $1. I remember a 4 week roll at one point that also couldn't budge the strike (for a credit).
But this does illustrate the inherent value and lower risk in naked and cash secured puts - the only thing that can stop the roll is an external need for that cash for other purposes, or the company goes bankrupt and the shares become worthless. The value of the roll might start getting pretty small but the length of the roll can also be extended - I've seen situations, especially when DITM, where a 2 week roll is >> 2x 1 week rolls. I.e. a $3 credit per week or $5 and a $10 strike improvement for 2 weeks sort of thing.
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