Rolling for credit tends to get expensive. This is one of the approaches I will consider when deciding what actions I'll take next time I am in same spot.
Rolling DITM Calls
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Rolling for credit tends to get expensive. This is one of the approaches I will consider when deciding what actions I'll take next time I am in same spot.
Rolling DITM Calls
Jan 24 c3000's because the price seemed reasonable. No problem for me to write calls at a lower strike
A variety of written calls. If I can I look for 2% above the SP, and 4% for puts - so for next week I'd be targeting -p2500/2550's's and -c2650's/2700's
Although I'm holding some -c2600's right now that might need rolling...
corduroy
Active Member
Probably early, but sold a couple -730p for 3/18 for $8. I'm willing to go closer than 20% on straight puts since management is easier than BPS.
I've been trying to stick to selling OTM bps before monday, closing them by Wednesday and then selling OTM/ATM bcs into Friday.
The other thread probably hates todays dip, I love it.
Started last week Friday with 800/770bps (probably too early even) until Wednesday (I didn't panic early Saturday but was lucky to maintain a larger margin than before) and got about 60% of profit. Set up a 850-880 bcs at 860 since max pain was still 840 and call wall forming at 900 and 850. Now looking at 80% profit.
Yes, spreads 50 wide are better than 30 wide, and 100 even better, but I've noticed it's even more important to leave enough excess liquidity in case it goes partly south. No liquidity = forced closing by IBKR.
I mean, it's obvious, but trust me, I'm really riding the Dunning-Kruger Effect curve here.
The other thread probably hates todays dip, I love it.
Started last week Friday with 800/770bps (probably too early even) until Wednesday (I didn't panic early Saturday but was lucky to maintain a larger margin than before) and got about 60% of profit. Set up a 850-880 bcs at 860 since max pain was still 840 and call wall forming at 900 and 850. Now looking at 80% profit.
Yes, spreads 50 wide are better than 30 wide, and 100 even better, but I've noticed it's even more important to leave enough excess liquidity in case it goes partly south. No liquidity = forced closing by IBKR.
I mean, it's obvious, but trust me, I'm really riding the Dunning-Kruger Effect curve here.
At 815ish TSLA is a steal so already set up the 800-770bps for next week for 14,25 each.
The $1.64 credit on the roll from 3/11 -c$840 to 3/18 -c$870 has now quadrupled. Shudda waited………
Opened two new positions on this dip:
6X 3/18 750 puts @10.00
1X 3/18 710/575 BPS @ 4.87
It's been a decent week. I closed out a majority of my 2-7 DTE puts at close yesterday. The volume was insignificant and just did not think it would hold. I had 30X 3/11 865/975 BCS that I held overnight. I closed this position on the dip today.
The volume on today's dip is even more insignificant than the volume yesterday so I expect a bounce at some point. If yesterday was a bull trap this one sure seems like a bear trap to me. I'm expecting a good bounce around 806.
6X 3/18 750 puts @10.00
1X 3/18 710/575 BPS @ 4.87
It's been a decent week. I closed out a majority of my 2-7 DTE puts at close yesterday. The volume was insignificant and just did not think it would hold. I had 30X 3/11 865/975 BCS that I held overnight. I closed this position on the dip today.
The volume on today's dip is even more insignificant than the volume yesterday so I expect a bounce at some point. If yesterday was a bull trap this one sure seems like a bear trap to me. I'm expecting a good bounce around 806.
Of course, because I have a bunch of $804.20 buys set.
Of course, because I have a bunch of $804.20 buys set.
I mean if the macros continue, we could see 780s again tomorrow.
scubastevo80
Member
Wrote
I'm trying to be more tactical as well. Writing 6-19 DTE BPS but closing earlier if I'm getting 30% plus returns, and writing 1-2 DTE closer to money (like today writing -795/+750 BPS) that I was prepared to roll if we came close to $800. I'm really trying to avoid hanging out there for a negative macro event that hurts my open positions.
corduroy
Active Member
I've come to think of options selling as the opposite of regular investing.
Instead of maximizing time in the market when going long with stock, I want to minimize my time in the market with sold options. To get in and out as soon as possible to remove risk exposure.
I have been reading up on GAPS in more detail. I know people in this thread have said that the GAP is based on the previous day’s high or low. However it looks like the general definition of a GAP is based on previous day’s closing price.
For example on Tuesday TSLA closed around 824 with a high of 850. On Wednesday it gapped up and never filled the gap(low was 832). That gap was filled today.
Anybody disagree with this?
For example on Tuesday TSLA closed around 824 with a high of 850. On Wednesday it gapped up and never filled the gap(low was 832). That gap was filled today.
Anybody disagree with this?
Is there a benefit or disadvantage of letting a bcs expire OTM instead of closing it before end of normal trading hours? What happens if you let them expire?
If something crazy happens at the closing cross or after hours - you can be assigned...
Very uncommon but has happened on both sides - BCS/BPS
Always easier to close it for pennies before close today, unless really far out.
Just my opinion, I have let CC's and P's expire but never a spread. Just my own personal convictions.
Cheers
Ok I’ll settle for a few bucks for peace of mind 
Although $30 OTM seems safeish. Or not.
Although $30 OTM seems safeish. Or not.
<Wrote this yesterday afternoon but didn't hit Post>
Used the drop to the 820s to sell some 750 puts, close 860 calls, and roll 750 calls. The 750 call roll was +$10 strike and a trivial credit.
Still have some 820 calls for this week. My bias, especially with the move under 820 is to hover and close late in the trading day. If tomorrow opens up I'd like to avoid turning a winning position into another roll. They're down under $9 time value as I write
The way I'm reading things right now, really really not-advice, is that inflation will be dominating the headlines and trading today and maybe tomorrow. PPI (producer level inflation) is reported on Tuesday, where I expect more bad inflation news and another down day. What happens on Friday / Monday is a guess for me.
We're also getting close enough to the P/D report at start of April that I'd like to be out of any CC positions after 3/18 (and hopefully a bit earlier). I'm hoping for another good report with an associated pop in the share price. Something like we had on the Q1 P/D. My plan today is to be out of CC and stay out until after the P/D report - a whole 2 weeks. I'll continue selling puts though, maybe even decide to take assignment on some of them (750ish would be nice - I don't expect to hit 750, or if so not stick around).
I believe that the war in Ukraine is more priced into the market than not at this moment. The two big events I can imagine moving the market and Tesla share price would be a decision to withdraw on the part of Russia, or a decision to employ tactical nuke(s). Either way that is something I think that isn't priced in. The daily drip of news and continued evidence of the Russian army being a paper tiger - I don't see that moving us either way.
On balance I think that macro is a bigger impact right now than the Tesla story, though I also think they are closer to balanced than not. I expect at least a brief window around P/D where the Tesla story will take over. And then by mid-April P/D will be forgotten and an even worse inflation reading will take center stage.
That's my guess of the moment, and more important - what I see that leads to those guesses.
What I'm hoping for is an early close opportunity on those 760 calls
Used the drop to the 820s to sell some 750 puts, close 860 calls, and roll 750 calls. The 750 call roll was +$10 strike and a trivial credit.
Still have some 820 calls for this week. My bias, especially with the move under 820 is to hover and close late in the trading day. If tomorrow opens up I'd like to avoid turning a winning position into another roll. They're down under $9 time value as I write
The way I'm reading things right now, really really not-advice, is that inflation will be dominating the headlines and trading today and maybe tomorrow. PPI (producer level inflation) is reported on Tuesday, where I expect more bad inflation news and another down day. What happens on Friday / Monday is a guess for me.
We're also getting close enough to the P/D report at start of April that I'd like to be out of any CC positions after 3/18 (and hopefully a bit earlier). I'm hoping for another good report with an associated pop in the share price. Something like we had on the Q1 P/D. My plan today is to be out of CC and stay out until after the P/D report - a whole 2 weeks. I'll continue selling puts though, maybe even decide to take assignment on some of them (750ish would be nice - I don't expect to hit 750, or if so not stick around).
I believe that the war in Ukraine is more priced into the market than not at this moment. The two big events I can imagine moving the market and Tesla share price would be a decision to withdraw on the part of Russia, or a decision to employ tactical nuke(s). Either way that is something I think that isn't priced in. The daily drip of news and continued evidence of the Russian army being a paper tiger - I don't see that moving us either way.
On balance I think that macro is a bigger impact right now than the Tesla story, though I also think they are closer to balanced than not. I expect at least a brief window around P/D where the Tesla story will take over. And then by mid-April P/D will be forgotten and an even worse inflation reading will take center stage.
That's my guess of the moment, and more important - what I see that leads to those guesses.
What I'm hoping for is an early close opportunity on those 760 calls
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