Good info. You're gonna love the IV crush tomorrow. If you get a chance let us know how that goes for you as well.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I closed out my c1100 for this Friday for a couple hundred bucks profit from selling it a couple days ago.
Didn't have to but rolled my Friday p945 to next Friday p940 for $850 profit.
I don't play with margin and am just looking, at this point, for an easy grand a week so it made sense to take advantage of the downside just in case the stock flies up [which I doubt unless the report is bananas to the upside]
Note to self....wait until the day before earnings to sell options. Can't believe the IV spiked so much that it was dramatically more valuable than the time decay of three days.
Good luck everyone!
Didn't have to but rolled my Friday p945 to next Friday p940 for $850 profit.
I don't play with margin and am just looking, at this point, for an easy grand a week so it made sense to take advantage of the downside just in case the stock flies up [which I doubt unless the report is bananas to the upside]
Note to self....wait until the day before earnings to sell options. Can't believe the IV spiked so much that it was dramatically more valuable than the time decay of three days.
Good luck everyone!
Report is out. Bet the right way, the bullish way.
TBH this quarter was an exception. It had everything to do with the Netflix ER and the strange comparisons of TSLA vs NFLX growth/competition. I don't remember it being the case for previous quarters.
I'm so glad i covered everything i had with 1250LCC @0.90$ a bit before close. IVwas insane. I doubt that we see 1250 this week. If we do i still can roll out & up - as the underlying calls only expire in may.
IV-crush will be so hard tomorrow.
Sadly i had not the capital to open 900/800 BPS or similar for friday .. would have been easy money. :/
IV-crush will be so hard tomorrow.
Sadly i had not the capital to open 900/800 BPS or similar for friday .. would have been easy money. :/
Yesterday I'd opened an ATM BCS for 5/20 near high for the day and closed it at today's low, keeping 30% of the credit. Tomorrow I'll decide whether I will close out a -985/+925 BPS for 4/22 that I rolled to this week or let it sit. Seems it can expire worthless, we'll see. Closing early tends to leave more on the table but it feels so good being ahead some.
The other thing that the early close does, that took me a long time to figure out, is it sets you up to open a replacement position the next day. A big move up today is frequently paired with a big move down tomorrow.
So closing the puts on a big up day will frequently create a good opportunity to open new puts tomorrow. Sometimes it needs an extra day or 2, but the dynamic is there.
The short hand is opening into strength, close into weakness. For puts - open on down days, close on up days.
not-advice of course; individual positions have a lot more going on than such a simplistic rubric.
Let's see if the 1090-1120cc survive. I rolled half of them up to $1170. I sold $880 puts at the last hour.
Zhelko Dimic
Careful bull
I've been with Tesla for 7 years now, quite actively trading around position. I've done what you want to do, and lived to regret it.
Take into consideration that TSLA could leap up to 100%-150% (up to 2.5x) from the 200 day line.
200 day line is at $894.
So while it would delight me, it wouldn't surprise me to see TSLA up to $2200 this year. Not that I would bet on it either.
I have some long dated BPS for Jan 2024. They are close to being OTM and should definitely be OTM come 2024. Assuming sufficient margin, Does it make sense to sell the long puts and turn it the position into a naked Put? That assumes I'm bullish on the stock and the that the short leg is OTM come 2024.
Jan 2024 1100/1000 BPS
Jan 2024 1100/1000 BPS
EVNow
Well-Known Member
Just hoping for 1050+ close - I've underwater puts.
You would be turning a position that tied up $10k of margin (per contract) into a position that ties up $100k of margin (per contract). Also, if TSLA drops, your available margin would drop as well, and that drop affects $100k put positions more directly than $10k BPS positions. On the other hand, although you won't be able to carry as many naked puts as BPS, you can turn a naked put into a BPS as needed (by throwing money at the problem and buying long puts).
Although you'll be tying up a lot of margin to do this, it's definitely safer than having 10x as many BPS.
Edit: Note that you don't need to buy long puts that expire at the same time as your short puts. You can simply buy enough to cover you until whenever you think TSLA would recover enough to restore your available margin.
I have not been through many earnings events while trading options (18 months only), but this one seemed to be very manipulated. The options prices were kept up while the SP dropped $50 (multiple day event, but very obvious today). The IV seems to be the MMs method of choice for this manipulation. We will see what happens tomorrow, but I’m expecting the IV to be lower, even though the SP should trend higher, normally catalyzing more call buying (and hence higher IV). Furthermore, there were very few options traded throughout the week, implying that many traders were aware of the shenanigans. What did we learn and where do we go from here? No idea, I’m just hoping to get out of this week without losing my shirt (and shares) again. Maybe those -p1000s will finally die.
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As far as I am aware the MM's cannot manipulate IV, there are too many factors in play including the demand of the very contracts they sell.
You can pull it forward to e.g. June, Dec or so. This will destroy Theta faster and cost no margin. If you pick the wrong date, however, then you are on the hook. Depends on your cost basis.
jeewee3000
Active Member
Yes but remember that pulling forward is easier/cheaper when SP is higher. Might be good to enjoy the post Q1 earnings rally first before making this move.
To those who bought $1150 calls for next week, what is the plan?
Slightly related — have May 20 $1200 which I expect to euthanize soon.
I’m looking for ideas too but my usual strategy with very short term calls is sell 50% on a pop like this and let the rest ride into next week.
I will be looking for option flow in the morning and go from there. If I see big call buying I might hold off any sales until tomorrow.
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