Wiki Selling TSLA Options - Be the House

[adiggs]

I've added some 1000 strike cc for next week at $8. These go with the 950s I sold earlier in the week. The long calls that back these expire in June and I plan (today) to be rolling those June 750s in March or April - I want to avoid the steep part of the time decay curve.

So I'm getting increasingly aggressive with cc strikes and will grow more aggressive should the shares go back over 1000.

EDIT to add - (and not-advice)
I find myself making use of market orders in the middle of the day with reasonably close to the money / short expiration options. Anything that has a reasonably narrow bid/ask and isn't start or end of the day. It gets the positions (open or close) filled immediately so I don't need to wait around. These are obviously the positions I just decided that I want in or out of, but I rarely enter orders on the off chance that they will fill.

As long as the bid/ask is a .20 range and the premium being sold is $8 (as it was this morning), then the incremental value of trying to get an extra .05 is very low for me.


When buying DITM calls with distant expirations I might represent all or at least most of the trade volume on that day. That DEFINITELY gets a limit order, but the bid/ask being $10+ also makes that pretty clear

 

[samppa]

So one more I'm trying to dodge a little max loss thought for the stuff expiring today (-1025/+915) since I didn't get any early assignment overnight.


Max loss is $110/sh given the spread.

For around half that I can roll to -900/+800 really almost any date from mid-april through at least mid-october

Of course I risk then losing the $100/sh max of the new spread on top of the ~$55/sh I lost rolling.

And if this is the legit start of a bear market, that's a real risk.

I can go further down for not a TON more but it requires going to the farish end of the range..... -800/+700 for mid-Oct costs about $62/sh net right now.... which has a short not just 20% down from current, but 50% down from ATH.

Though it locks the margin away for ~8.5 months. Then again taking full loss now the margin is gone anyway since it covers the full loss $.

How about just taking the loss, and then slowly gaining it back by selling safer weeklies..

 

[corduroy]

I closed the -740/640 BPS I opened this morning at 75% profit. I didn't expect that to be a day trade, but why carry the risk over the weekend. In this market I'll take any wins I can get.

 

[TheTalkingMule]

I sincerely hope that the bear market is over. All tech earnings is done, so now it's just up to the boomer stonks to not take a huge dump on themselves and kill the S&P 500.

Nvidia is on I think the 14th.

 

[intelligator]

I too hit my goal this week. Patiently waited for my price to hit on 2/11 spreads, gave back at credit one and the other at even money. Didn't want to fret over what will happen next week. Near end of todays session, sold two CC at 1040 for next week against two long calls for May ... those are @ 1200. Might need to learn what a roll would look like, never done on a call. Next stop is April spreads I rolled out there two weeks ago and then December. This week, I freed a total of 137 165K margin !!!

 

[Drezil]

i closed all my pending positions, nothing open in acct, will be cash only this weekend for the 1st time

i.don't.know.why.i.did.that.

starting fresh on monday... put prems will be lower and i lost theta and that's ok

acct grew 13.43% the last 2 weeks so maybe this new 'strategy' is working: stay 5-7 DTE, BTC 80%, add daytrading as gravy

i am going to see if i can repeat this success in the next 2 weeks

I did quite the opposite, but i guess with similar effect?

BTO 30x 910/890 BearPS @6 to not realise profits/losses on the ITM positions, but still hedge against a downtrend beginning next week.
It is a bit interesting, because i have 900/850 BullPS open (opened on a down day) and still a rolled 1050/950 BPS.

It is a bit tricky & i have to be at the pc on monday opening & react. But with strategic closing of positions i should be able to be prepared for every move. Down to 880 again? sell the BearPS with 100-200% profit, hope for rebound. Rising sky-high? Close 900/850 @80% or so, roll/close the 1050/950.
Staying the same? I mean .. it's tesla .. it will move But still close the 910/890 fast because Theta will chew away at it FAST. (currently "only" 0.2/day, but with 6$ premium left to wither away until friday it will increase FAST & delta is also in that region!).

The last days the "morning dips" allowed me to close such insurances with profit neatly canceling out the theta i lose on the rolled & held positions granting me more time for the SP to recover.

I mean. I am still in a deep hole - but at least i stopped digging and try to cover my bases so that even when SP tanks (because .. idk, russia invaded ukraine, a meteor hits giga berlin, $whatever) I never take >50% losses over a weekend again.

 

[BornToFly]

After cowering in the corner like a badly beaten dog for the last week, I finally opened a few 620/720 - 1050/1150 condors today for the 11th. I'm not worried about the Put side, and wasn't worried about the call side until I thought about the possible reaction to a Berlin announcement. Don't know if we could have Hertz week all over again, especially considering how far below the ATH we are right now. If I survive the weekend, I might close the call side, and maybe move the Put side up a little.

 

[MikeC]

Hertz scared me off BCS and this dip has scared me off BPS. I have naked puts in the 1100s that are zero stress compared to the -p860/660s I was worried about this week that were rolled from -p900/700 last week. I think if I go to naked puts and CCs only and do a roll/wheel strategy I will sleep better. It sucks being in the Pacific time zone having to be up at 6:30 am for market open to be ready to roll spreads.

 

[Xepa777]

Hertz scared me off BCS and this dip has scared me off BPS. I have naked puts in the 1100s that are zero stress compared to the -p860/660s I was worried about this week that were rolled from -p900/700 last week. I think if I go to naked puts and CCs only and do a roll/wheel strategy I will sleep better. It sucks being in the Pacific time zone having to be up at 6:30 am for market open to be ready to roll spreads.

This is exactly what I do. Never got into BPS or BCS. I just keep things simple especially since I still have a day job.

 

[OrthoSurg]

This is exactly what I do. Never got into BPS or BCS. I just keep things simple especially since I still have a day job.

I BTC my 20x 4/2 1065 CCs on the morning dip yesterday and STO 20x 11/2 1045 CCs today when the stock rebounded in the morning. Only got 2.85 on my market order. I should have set a limit order higher at 3 or 3.2. Let’s see if TSLA goes above 1000 next week. If this happens, TSLA will be officially out of its bear trend and all my rolled -p910, -p925, -p1000 with 2, 4 and 6 weeks to expiration will finally back to break even.

 

[ReddyLeaf]

…….I finally opened a few 620/720 - 1050/1150 condors today for the 11th. I'm not worried about the Put side, and wasn't worried about the call side until I thought about the possible reaction to a Berlin announcement.

……..STO 20x 11/2 1045 CCs today when the stock rebounded in the morning. ……..Let’s see if TSLA goes above 1000 next week. If this happens, TSLA will be officially out of its bear trend……

Those look like great trades to me. While I’m not really comfortable with any level predictions right now, $974 and $940 seem like serious resistance, ex any outside influence (e.g. Austin opening announcement, macros, Ukrainian invasion). On the graph below there is a confluence of 100d & 20d SMA mid-Bollinger band. Until we receive more news, I think the MMs will try to keep the SP in the MaxPain channel (currently 900-950). I sold 2/11 c955s and p900s on Friday and definitely worried about the calls, especially if we rocket $100+. With enough cash to roll, my Sept22 -p1000s will benefit, but not looking forward to those management gyrations. Last week was beyond amazing for my trades, everything eventually expired worthless, plus I was able to pick up 40+ shares in the 880s-905s. Slowly clawing back last week’s horrendous losses that required rolling p1000-p1150s out to Sept & Jan23. GLTA

 

[BornToFly]

I just remembered that Elon is supposed to fly to Berlin soon. Anyone remember the dates?

 

[bkp_duke]

I just remembered that Elon is supposed to fly to Berlin soon. Anyone remember the dates?

"Mid Feb" is all the details he gave.

Tesla CEO Elon Musk to visit Berlin factory in mid February

Elon Musk will visit Tesla's factory in Berlin in mid-February, the chief executive tweeted on Tuesday, following speculation on Twitter that he would be in Germany this month.

www.reuters.com

 

[TheTalkingMule]

Got a question on rolling, not out but in.

I've rolled half my 1050/900 ITM 2/11 BPS for various debits and additional margin. I'm hoping to roll the rest Mon/Tues if we move marginally higher and I can squeeze a small credit on a slightly widened May 20 1050/880 spread.

Question is......what if SP is at $1100 3 weeks from now? Is it easy enough to roll these back in and try to expire them if they're fully OTM?

Thanks as always for all the help.

 

[BornToFly]

Got a question on rolling, not out but in.

I've rolled half my 1050/900 ITM 2/11 BPS for various debits and additional margin. I'm hoping to roll the rest Mon/Tues if we move marginally higher and I can squeeze a small credit on a slightly widened May 20 1050/880 spread.

Question is......what if SP is at $1100 3 weeks from now? Is it easy enough to roll these back in and try to expire them if they're fully OTM?

Thanks as always for all the help.

I don't know if you will be able to roll them back in without a debit, because of the Theta cost difference. (Might still be worth it though).

Be careful on slowly widening spreads to roll them. That is what I was doing, and then when the stock dropped to 800 I didn't have enough margin anymore. Because I now understand that you can't get margin back by buy back a full ITM spread, I am going to use a lot less margin in the future. I need to get to the point where I'm either using a cash account, or using so little margin that even World War 3 and a stock drop to 500 won't result in a Margin Call.

 

[TheTalkingMule]

I don't know if you will be able to roll them back in without a debit, because of the Theta cost difference. (Might still be worth it though).

Be careful on slowly widening spreads to roll them. That is what I was doing, and then when the stock dropped to 800 I didn't have enough margin anymore. Because I now understand that you can't get margin back by buy back a full ITM spread, I am going to use a lot less margin in the future. I need to get to the point where I'm either using a cash account, or using so little margin that even World War 3 and a stock drop to 500 won't result in a Margin Call.

I am thankful for two things:

1) I'm in my IRA, so these are just covered with cash margin.
2) I was just learning the in's and out's of BPS, so I didn't get in too deep with too many contracts. I can afford to widen a bit and add cash margin. Increased cash at risk, but I'm confident I can close these out eventually.

I tried to run some scenarios on Fidelity and I think I can roll back in for at least a reasonable debit if they're fully OTM at the time.

In fact, I just now pulled up a $1000/$850 BPS I already rolled to 5/20, and it looks like about a $5 debit to roll in to 2/18 at the same strikes. I assume if they're fully OTM it's either even or a credit depending on SP. I took huge premiums when I sold these, so I'm fine wasting a bit if I can just get the hell out of the position.

I'm gonna go ahead and roll these to 5/20 Mon/Tues. There's always macro/inflation risk, but I think either we pop to $1100 by March or we fight thru the Fed and pop after 1Q earnings in April. Or I just turn to prostitution. All good options.

Thanks!

 

[JustMe]

There have been a few posts about early put assignments recently. Has anyone had this happen more than 1-2 days before expiration?

I have a 2/11 1015/900 bps that I’d like to roll down and out if the share price gets above the mid point ($958) next week. Or even have it expire worthless if we blow past $1000. Dare to dream

 

[strago13]

I am thankful for two things:

1) I'm in my IRA, so these are just covered with cash margin.
2) I was just learning the in's and out's of BPS, so I didn't get in too deep with too many contracts. I can afford to widen a bit and add cash margin. Increased cash at risk, but I'm confident I can close these out eventually.

I tried to run some scenarios on Fidelity and I think I can roll back in for at least a reasonable debit if they're fully OTM at the time.

In fact, I just now pulled up a $1000/$850 BPS I already rolled to 5/20, and it looks like about a $5 debit to roll in to 2/18 at the same strikes. I assume if they're fully OTM it's either even or a credit depending on SP. I took huge premiums when I sold these, so I'm fine wasting a bit if I can just get the hell out of the position.

I'm gonna go ahead and roll these to 5/20 Mon/Tues. There's always macro/inflation risk, but I think either we pop to $1100 by March or we fight thru the Fed and pop after 1Q earnings in April. Or I just turn to prostitution. All good options.

Thanks!

My plan is roll my august 850 puts closer to current date at a higher strike if we near ATH. This will counteract the theta.

 

[jeewee3000]

Got a question on rolling, not out but in.

I've rolled half my 1050/900 ITM 2/11 BPS for various debits and additional margin. I'm hoping to roll the rest Mon/Tues if we move marginally higher and I can squeeze a small credit on a slightly widened May 20 1050/880 spread.

Question is......what if SP is at $1100 3 weeks from now? Is it easy enough to roll these back in and try to expire them if they're fully OTM?

Thanks as always for all the help.

Rolling in can happen at a credit when the SP has gone high above your short strike and you can roll the spread in and up.

Example, I'm holding a Jan2023 -1100p/+1000p due to a roll. If SP were to go to $1350 or so I could roll to a closer -1250/+1150 or so. (Numbers made up, this is theorycrafting)

The 1150 should have so little theta left on a close expiration date that this could compensate the difference between the short strikes.

Rolling in at same strikes is always at a debit though.

 

[InTheShadows]

Got a question on rolling, not out but in.

I've rolled half my 1050/900 ITM 2/11 BPS for various debits and additional margin. I'm hoping to roll the rest Mon/Tues if we move marginally higher and I can squeeze a small credit on a slightly widened May 20 1050/880 spread.

Question is......what if SP is at $1100 3 weeks from now? Is it easy enough to roll these back in and try to expire them if they're fully OTM?

Thanks as always for all the help.

Why are people widening their spreads? I’m narrowing mine to lower the short leg significantly and raising the long leg a few strikes. I’ve found I can do this and it’s only slightly raising the mid point.

I understand that max loss can happen faster this way, however the stuff I have done this with, I was already facing max loss, or close to it.