Wiki Selling TSLA Options - Be the House

[FS_FRA]

Only what they deem necessary. I've had then liquidate eg one contract of 10.

but it's some algo that does it, so it could really do anything.

I think there's a way to specify "liquidate last" on some positions, but I haven't realiy looked at it.

Their Helpdesk confirmed the algo simply liquidates indiscriminately whatever position would give most margin improvement. Could be the put spread, could be the underlying.
Liquidation only during trading hours.

 

[scubastevo80]

Difficult to post this. Sharing here so that hopefully I can get some "not advice" from the experienced traders, and that someone can learn from my mistakes. I had a lot of hubris for growing an account from 60k to nearly 600k over the span of 6 months, but I made a serious mistake by going all-in on Jan 28th positions (when we peaked around P&D report Jan 3rd), and falsely thinking that TSLA could withstand the headwind of a Bear Market. In hindsight going all in on anything was just a poor decision on my part.

I'm down 90% total in my trading account from the pop on Jan 3rd. Trying to salvage something so that I don't take max loss today, which means I need to have orders in at open to reduce the chance of early assignment. Any "not advice" would be greatly appreciated.

Cash in the account is low, but I can increase this by selling off the 100 shares of TSLA and 200 shares of AMD. That should give me enough maneuvering room (I hope). Currently I am planning on doing that, probably before the market opens.

Positions expiring 1/28:
1) BPS 950/1000 - going to try to roll these all the way out to Jan 24 at 1400/1450. Eyeing a debit on these of $5 each, but the spread is very wide. (-13.2 to +23.9 as of this post)
2) BPS 925/975 - going to try to roll these all the way out to Jan 24 at 1400/1450 as well, and also eyeing a debit on these of $5 each. Spread currently -13.7 to +23.9.
3) BPS 900/950 - going for same roll, Jan 24 at 1400/1450, debit of $4. Spread currently -13.7 to +22.45.
4) BPS 780/830 - going to sit on these for now, it's a relatively small number and hoping that they expire worthless.

Also have some 950/1000 exp 2/4, but can't deal with those today unless I get out of this mess successfully.

Specific questions:
A) The debits above are approximately the mid-point of the spreads. Would you consider aiming for closer to Net Bid at open, and hope you get lucky, or take what you can get?
B) I'm rolling all the way to Jan 24 in order to hopefully "get past" the Bear Market we are in (and which I fear will get worse before better). If things improve before then, I would exit the positions early (although I know Theta decays very very slowly this far out). Is this appropriate thinking, or should I be looking at a closer in date?
C) I'm maintaining the 50 pts wide spreads simply because they are giving me the most optimal use of capital at this point. Is that a mistake?
D) I chose the 1400/1450 spreads because it was the best balance, in my mind, of getting past the Bear Market and a "reasonable" projection of what TSLA share price would be within 6 months or less of expiration for these puts. Is that logical?
E) Is planning on sitting on the 780/830 BPS today a bad idea? I'm really concerned about further drop next week, and want to exit this position but not take a loss.

Can you expand upon your logic here? This seems like you’re sitting out 2022 in hopes of recovering most/all of this past week or two’s losses, as opposed to trading them back throughout the year. We bought ourselves a week on our 940/800 BPS but it’s now close to half the accounts value so I may do something similar on a pop to get through Q1-2 macro uncertainty.

 

[samppa]

Pre-market looking brutal.. does the uptick-rule apply to pre-market trading?

 

[chiller]

Sorry to be dense, would you expand on this? Is there a IBKR TWS tool that let's me calculate what shitputs I should consider?

I use the strategy builder, it will show you the margin impact: (shown in the bottom right in NOK because that is what my account is in):

 

[chiller]

Positions expiring 1/28:
1) BPS 950/1000 - going to try to roll these all the way out to Jan 24 at 1400/1450. Eyeing a debit on these of $5 each, but the spread is very wide. (-13.2 to +23.9 as of this post)
2) BPS 925/975 - going to try to roll these all the way out to Jan 24 at 1400/1450 as well, and also eyeing a debit on these of $5 each. Spread currently -13.7 to +23.9.
3) BPS 900/950 - going for same roll, Jan 24 at 1400/1450, debit of $4. Spread currently -13.7 to +22.45.
4) BPS 780/830 - going to sit on these for now, it's a relatively small number and hoping that they expire worthless.

Thanks for sharing.
It looks like all time-value is gone from all strikes above 925 or so, so I would think the first two are at a full loss already. Just buy them back and reassess. Moving it out to 2024 seems like it will hinder you from making money going forward.
Even the third one seems thin on value left, also probably best to just eat the loss. You could gamble on a pop back up, but the risk of early assignment looms over you.

 

[ShibaLover]

Difficult to post this. Sharing here so that hopefully I can get some "not advice" from the experienced traders, and that someone can learn from my mistakes. I had a lot of hubris for growing an account from 60k to nearly 600k over the span of 6 months, but I made a serious mistake by going all-in on Jan 28th positions (when we peaked around P&D report Jan 3rd), and falsely thinking that TSLA could withstand the headwind of a Bear Market. In hindsight going all in on anything was just a poor decision on my part.

I'm down 90% total in my trading account from the pop on Jan 3rd. Trying to salvage something so that I don't take max loss today, which means I need to have orders in at open to reduce the chance of early assignment. Any "not advice" would be greatly appreciated.

Cash in the account is low, but I can increase this by selling off the 100 shares of TSLA and 200 shares of AMD. That should give me enough maneuvering room (I hope). Currently I am planning on doing that, probably before the market opens.

Positions expiring 1/28:
1) BPS 950/1000 - going to try to roll these all the way out to Jan 24 at 1400/1450. Eyeing a debit on these of $5 each, but the spread is very wide. (-13.2 to +23.9 as of this post)
2) BPS 925/975 - going to try to roll these all the way out to Jan 24 at 1400/1450 as well, and also eyeing a debit on these of $5 each. Spread currently -13.7 to +23.9.
3) BPS 900/950 - going for same roll, Jan 24 at 1400/1450, debit of $4. Spread currently -13.7 to +22.45.
4) BPS 780/830 - going to sit on these for now, it's a relatively small number and hoping that they expire worthless.

Also have some 950/1000 exp 2/4, but can't deal with those today unless I get out of this mess successfully.

Specific questions:
A) The debits above are approximately the mid-point of the spreads. Would you consider aiming for closer to Net Bid at open, and hope you get lucky, or take what you can get?
B) I'm rolling all the way to Jan 24 in order to hopefully "get past" the Bear Market we are in (and which I fear will get worse before better). If things improve before then, I would exit the positions early (although I know Theta decays very very slowly this far out). Is this appropriate thinking, or should I be looking at a closer in date?
C) I'm maintaining the 50 pts wide spreads simply because they are giving me the most optimal use of capital at this point. Is that a mistake?
D) I chose the 1400/1450 spreads because it was the best balance, in my mind, of getting past the Bear Market and a "reasonable" projection of what TSLA share price would be within 6 months or less of expiration for these puts. Is that logical?
E) Is planning on sitting on the 780/830 BPS today a bad idea? I'm really concerned about further drop next week, and want to exit this position but not take a loss.

I had the same BPS 950/1000 which I rolled to 2/4 same strikes yesterday, paid by legging into IC 1000/1050.

 

[generalenthu]

I would love to know how to do this in IBKR. I have some -950/+800 expiring tomorrow that I have to deal with . One thought was to roll to half as many but twice the width and reset the midpoint. I don't have the margin room to just close them all and reopen new ones. I spent a bunch of time in TWS rollover tool trying to figure it out but can't see how to do it. I don't really use the app for trades, just to check balances and positions. Maybe I'll have a poke around.

It's easy to setup on the app. Go to options chain, turn on strategy builder, and add all the legs you want to it.

Like sell 800, but 950, and sell 1050 buy 750, or something like that. You can then edit the strategy and use a 2 multiplier for the closing legs, and leave it at 1 for the other.

You now have the the complex order, which is the roll you want, but with 4 legs execution could potentially be subpar.

 

[bkp_duke]

Can you expand upon your logic here? This seems like you’re sitting out 2022 in hopes of recovering most/all of this past week or two’s losses, as opposed to trading them back throughout the year. We bought ourselves a week on our 940/800 BPS but it’s now close to half the accounts value so I may do something similar on a pop to get through Q1-2 macro uncertainty.

I'm trying to salvage as much capital as possible before it goes "poof" by assignment today or expiration. That's the ultimate goal. With the Fed signaling several rate hikes this year, I think the Bear Market we have entered may continue for at least 6 months (per Google search the average Bear Market is 9-10 months long).

 

[scubastevo80]

I'm trying to salvage as much capital as possible before it goes "poof" by assignment today or expiration. That's the ultimate goal. With the Fed signaling several rate hikes this year, I think the Bear Market we have entered may continue for at least 6 months (per Google search the average Bear Market is 9-10 months long).

Thanks - understood. We were thinking similar yesterday, but this is a "trade for income" account so we decided to take our losses and start over.

 

[juanmedina]

I'm trying to salvage as much capital as possible before it goes "poof" by assignment today or expiration. That's the ultimate goal. With the Fed signaling several rate hikes this year, I think the Bear Market we have entered may continue for at least 6 months (per Google search the average Bear Market is 9-10 months long).

I wonder what this means for the stock trading range wise?

 

[bkp_duke]

Thanks - understood. We were thinking similar yesterday, but this is a "trade for income" account so we decided to take our losses and start over.

If I had hit the ejection button yesterday in the first hour, this would be my route as well. Sadly I didn't.

 

[TheTalkingMule]

Quick question.......Did we help facilitate this bear raid by selling fifty bazillion put contracts?

 

[strago13]

Just rolled my 2/11 950 puts to 1/2024 1225 and closed out 1/3 of them with the proceeds. This is bonkers.

Free'd up a bunch of margin which I will likely use to buy shares.

 

[MP3Mike]

Quick question.......Did we help facilitate this bear raid by selling fifty bazillion put contracts?

IMHO: Yes.

 

[elasalle]

Bailed out of Jun 22 720's .. margin concerns ... big losses
Sold Jan 24 400's Puts to get back some $$
licking wounds ...

Lot of fear. Good luck All

 

[corduroy]

I took the free roll to next week for my -810/710s down to -750/650. Now to worry about my -800/700s.

 

[ZsoZso]

Last week I started to dip my toes into options, sold some covered calls (strike $1200, expiry last Friday) that got me some pocket change and used that and bought some Mar.18 calls at $1300 and $1400 strikes. Now those have gone down so much they are worth nothing -- wasn't expecting them to be ITM, but figured I could sell them for a profit if the ER causes a price jump. Well, free cash gone just as fast and easy as it came, I'll chalk it up as learning cost.

Now, with this crazy dip, I do not dare to sell covered calls: safe strike prices worth nothing, anything below $1200 strike I consider too risky in case of a turn-around. Instead, I decided to sell some Mar.18 $600 and $620 Puts for $15 and $22.72 respectively. If the price drops that far so fast, I do not mind buying at those prices. Let's see how this goes...

 

[ChefBoyardee]

If we close above 856 (getting back into the channel after touching 200DMA) I think there's a chance that the bottom is in.

 

[ZeApelido]

Well after this week I think we all deserve a gift:

 

[bkp_duke]

If we close above 856 (getting back into the channel after touching 200DMA) I think there's a chance that the bottom is in.

Agreed, but we are going to need some help from the broader market for that I think.