Wiki Selling TSLA Options - Be the House

[BornToFly]

Looks like my 750/850 is going to be a nail biter all the way to the close today. They only need to drop it another 2% or so....
SP was around 930 when I opened the position yesterday - 10% above the short leg with a day and a half of trading until expiry. Amazing.

 

[UltradoomY]

Looks like my 750/850 is going to be a nail biter all the way to the close today. They only need to drop it another 2% or so....

Shouldn't you be able to close it out? the $850P is at $0.75 now but was at $0.39 a few minutes ago.
Do you need it to go to expiration?

 

[BornToFly]

Shouldn't you be able to close it out? the $850P is at $0.75 now but was at $0.39 a few minutes ago.
Do you need it to go to expiration?

I would rather not lose money. Opened 200X for .39 yesterday. 100X left.

 

[BornToFly]

Another option is I let the shares get assigned at 850 and sell covered calls. I'm just worried we drop to 750 or lower next week and then I'm stuck with shares I paid 850 for.

 

[OrthoSurg]

And at some point this week I was confident my -p910 11/2 were safe.
I am so naive.

 

[OrthoSurg]

Looks like my 750/850 is going to be a nail biter all the way to the close today. They only need to drop it another 2% or so....
SP was around 930 when I opened the position yesterday - 10% above the short leg with a day and a half of trading until expiry. Amazing.

And I thought my -p750 18/2 were more than safe because I thought we would close around 930 today. I think we will rebound next week but from what I see from Technical analysis we are in a near term downward triangle heading to 750 which I don’t find interesting. Absolutely not.

 

[Cherry Wine]

Another option is I let the shares get assigned at 850 and sell covered calls. I'm just worried we drop to 750 or lower next week and then I'm stuck with shares I paid 850 for.

Indices tanking on the Ukraine invasion report, FYI...

 

[BornToFly]

Looks like my 750/850 is going to be a nail biter all the way to the close today. They only need to drop it another 2% or so....
SP was around 930 when I opened the position yesterday - 10% above the short leg with a day and a half of trading until expiry. Amazing.

This is like watching a train wreck in slow motion. Down to 863 now. WTF...

 

[BornToFly]

Looks at my options. If shares get assigned, and I want to make sure I sell them next week without losing money even if the SP drops because of Ukraine, I could sell 750 strike CC for over $100. That gives me a little profit despite getting the shares at 850 and selling them at 750. Am I missing something?

 

[WattsHappening]

Looks at my options. If shares get assigned, and I want to make sure I sell them next week without losing money even if the SP drops because of Ukraine, I could sell 750 strike CC for over $100. That gives me a little profit despite getting the shares at 850 and selling them at 750. Am I missing something?

The only potential thing you may be missing is the possibility that the SP is less than $750 on ED. I know it's not likely, but we've been saying that for weeks now.

 

[BornToFly]

The only potential thing you may be missing is the possibility that the SP is less than $750 on ED. I know it's not likely, but we've been saying that for weeks now.

Correct, but then my new "cost basis" would be 750, and I could probably write a 700 call for the following week for over $50 and still profit in the end - Right?

 

[wooter]

Indices tanking on the Ukraine invasion report, FYI...

Yeah, all fun and games but this is still looming too. I'm pretty sure once it's underway stocks will recover to like what they were earlier today, but generally, war is bad for trade.

 

[BornToFly]

There is a Put wall at 850. Will be interesting to see if they let the SP close below it.

 

[WattsHappening]

Correct, but then my new "cost basis" would be 750, and I could probably write a 700 call for the following week for over $50 and still profit in the end - Right?

Sounds right to me.

Holding shares that you are ok with having called away provides relatively easy income. I write CCs also, but I am much more conservative because I don't want my shares called away. I've left a lot of money on the table the last 4 weeks.

 

[vikings123]

There is a Put wall at 850. Will be interesting to see if they let the SP close below it.

Remember that information is dated. Those walls are based on open interest as of last night.

 

[ChefBoyardee]

We closed the gap, created the second shoulder, and poked out of the channel a bit. My best guess is this is the bottom. Not placing any bets though since I'm overextended already.

 

[juanmedina]

We closed the gap, created the second shoulder, and poked out of the channel a bit. My best guess is this is the bottom. Not placing any bets though since I'm overextended already.

View attachment 767813

I am almost out of cash. I bought 2x Jan 24th 500c and 10 shares at 875ish.

 

[UltradoomY]

Thinking of a Ratio Put Spread - double the bought puts to sold puts for next week before close.

That way I collect premium up front, but if we gap down I make more on the long leg than the short.

Like this -

TSLA Ratio Back Spread calculator

TSLA Ratio Back Spread Calculator shows projected profit and loss over time. A ratio back spread involves selling one lot of in-the-money options, and buying twice as many at- or out-of-the-money options (of the same type and expiry), to open the trade for a credit.A call ratio back spread is...

opcalc.com

 

[vikings123]

ED? Surely Erectile dysfunction?
Earnings day surely

you can look at volume and open interest in the options charts though

Volume is real time but OI is not. You cannot really draw any OI information from volume.

 

[BornToFly]

Interesting Margin calculator results. I can close the 100X 850p, Buy 10,000 shares at 850 and my margin is ok. But if I then sell 100X 750CC for $118, I get a margin call. Makes no sense.