Wiki Selling TSLA Options - Be the House

[juanmedina]

Closed all 2/11 $1075 CC yesterday for $0.20 (91%), but kept the $975s which remain above $3. Pre-inflation report, the net credit for a roll to 2/18 has held quite steady for the past few trading sessions despite the SP swings, so hope that holds for either post-report scenario: a) SP pops on a below expectations figure, or b) slides with macros if figure is on or above 7% expectations. From reports here, European inflation reports seem lower than expected. Holding the $975 until expiration would pay for the next golf trip to FL.

I closed all my my $1070 CC and some BPS that I rolled from the fiasco from the other day. I still have a few for March 22nd highest strike $830 but I am almost done closing all my BPS from that day with zero losses. I only have been doing CC's lately and feel so relaxed.

 

[CHGolferJim]

I closed all my my $1050CC and some BPS that I rolled from the fiasco from the other day. I still have a few for March 22nd highest strike $830 but I am almost done closing all my BPS from that day with zero losses. I only have been doing CC's lately and feel so much relaxed.

I realized this week that the cautious portion of my CC strategy (~$150 OTM weeklies) could/should cover annual expenses, leaving the aggressive portion with buy-writes (at share cost of $975 and $1075 until SP moves higher) as gravy to fund better travel/beer/wine/restaurants, increased charitable contributions, support for my LPGA rookie friend, etc.

I take a somewhat bifurcated approach to the HODL portion (core shares and LEAPs 50:50) and the tactical portion (“CC Strategy” plus a few medium-term long call rage buys).

 

[juanmedina]

I realized this week that the cautious portion of my CC strategy (~$150 OTM weeklies) could/should cover annual expenses, leaving the aggressive portion with buy-writes (at share cost of $975 and $1075 until SP moves higher) as gravy to fund better travel/beer/wine/restaurants, increased charitable contributions, support for my LPGA rookie friend, etc.

Nice! I was looking at all my accounts and my parents account that I manage and is very interesting how differently they are all doing for the year. The account in which I only sell CC's is nice and green, on my parents account in which I try to be really careful is doing really well but the accounts where I can go crazy and do all kinds of trades are really lagging the other ones with 2/3rd more funds + margin. Like you with only CC's I should be able to cover my low expenses. I do still like longer term puts and I think longer term BPS with safe strikes should work without too much of a headache with a small percent of funds.

 

[CHGolferJim]

7.5%!

 

[scubastevo80]

If we touch down 3% this morning, we'll be writing BPS in the mid to upper 700s for 2/18. Hopefully a bit of an IV spike so the premiums are decent.

 

[Max Plaid]

Damn, I rolled my -c850's and -c875's yesterday... however, still holding -c900's for this week - might close out all covered calls if the opportunity presents itself... and put-free as of now, so will go fishing at open/during the MMD

 

[wooter]

I had some aggressive day trading 955/1005bcs and 900/885bps set up yesterday (yes small spread, low margin), assuming the market wouldn't enjoy +950 or -900. Turns out my bcs aren't aggressive at all, and my bps are .

 

[JustMe]

I had some aggressive day trading 955/1005bcs and 900/885bps set up yesterday (yes small spread, low margin), assuming the market wouldn't enjoy +950 or -900. Turns out my bcs aren't aggressive at all, and my bps are .

Were you trading 2/11 or 2/18 expiration dates? I have found I get better returns on 10 days out than 3 days out, depending on the share price movement. On the flip side, theta burn on 3 days out is fast enough to compensate for a mistake sometimes.

 

[FS_FRA]

Glad I got out of my 2/11 -900/700 yesterday. Market will over-react to "bad" CPI and possibly a BPS opening for 2/18 is in the cards.

Edit: Hmmm....

 

[wooter]

Were you trading 2/11 or 2/18 expiration dates? I have found I get better returns on 10 days out than 3 days out, depending on the share price movement. On the flip side, theta burn on 3 days out is fast enough to compensate for a mistake sometimes.

Sorry, 2/11. I don't dare to look that far into the future that close ATM. In this case I looked at the open interest and volume charts to guesstimate the market will end somewhere between 900 and 950 this Friday.

But I will look at 2/18 to see if that's true for day trading.

 

[mickificki]

FWIW, I follow @saxena_puru on Twitter, he had this to say on the inflation numbers:

“The market's reaction to the news is more important than the news itself.

Stocks stop declining when the worst has been discounted....high growth stocks taking today's inflation shocker in their stride.

Notable, no real bloodbath thus far. Bottoming process is underway.

The vast majority of my high growth stocks +ve today!

$ARKK also green, despite weakness in the indices.

The market is sending a clear message.”

 

[BornToFly]

Well that plan didn't work... I closed all my 2/11 BPS yesterday trying to enter new positions on a dip today. Was licking my chops at the open and then the SP... went up?

 

[jeewee3000]

Well that plan didn't work... I closed all my 2/11 BPS yesterday trying to enter new positions on a dip today. Was licking my chops at the open and then the SP... went up?

I am equally perplexed by this unexpected turn of events.

 

[EVCollies]

Rolled almost all my 2/25 BPS to 3/4 at same strike for about 2% credits:
980/780 @4.5
1000/800 @3

First time I've made any money on those pre-ER spreads in a few weeks...

 

[Yoona]

Were you trading 2/11 or 2/18 expiration dates? I have found I get better returns on 10 days out than 3 days out, depending on the share price movement. On the flip side, theta burn on 3 days out is fast enough to compensate for a mistake sometimes.

10 days also good... this daytrade is up 46% in 2 days, closed it just now

 

[bkp_duke]

Debating a 1-day Iron Condor - someone talk me out of it. YOLO trade.

860/910 BPS Exp 2/11
1000/950 BCS Exp 2/11

Pays about $11.50 now.

Considering it b/c it looks like "they" REALLY want things to close at $930 this week.

 

[Yoona]

Debating a 1-day Iron Condor - someone talk me out of it. YOLO trade.

860/910 BPS Exp 2/11
1000/950 BCS Exp 2/11

Pays about $11.50 now.

Considering it b/c it looks like "they" REALLY want things to close at $930 this week.

i also thought of quick daytrade 2/11 +p800/-p900/-c1000/+c1100 $4.90 credit, but decided not to go ahead

edit: too chicken

 

[ReddyLeaf]

I am equally perplexed by this unexpected turn of events.

Anybody know who’s in charge? Well, the CPI number and the SP response provided crystal clear clarity: Max, MaxPain, that is. So, remember a few days ago my prediction of $925+/-. This morning’s put-call OI is predicting $925-$930. After the open, I decided to test it with some “I dare you” puts. Rolled my -p900s to -p920s for $6.15 cr this AM, while still keeping the -c955s. I thought about 925s but just too close for me today. My brokerage, while not EF Hutton, won’t accept fake shares, so this will be a good test. I’ll probably roll tomorrow, but not until afternoon and things are down to the wire. Edit: Go for it @Yoona and @bkp_duke

Edit: the downside to being so close to ATM is that the last few pennies take forever to burn off Friday afternoon. Anytime there’s still a chance, the market prices stay high enough to keep the day traders busy. Makes for a stressful Friday afternoon, but my confidence is high this week.

 

[ChefBoyardee]

Closed some IC call legs this morning for some beer money - I had sold 1020/1010/840/830 on Monday but pretty quickly regretted the call strikes. Happy to be able to close those out today. I'm feeling pretty bullish with the price action this last week and the reaction to today's CPI numbers.

Also rolled some Mar 25 1000/950's to April 14 950/925 to help with Theta decay. It took a bit of margin, but it's funny how you can get better rolls with a lower SP sometimes

 

[Max Plaid]