It seems like a dead cat bounce. I'd be careful writing any covered calls with TSLA only because the uptick rule is in effect.
edit: Seems like we are headed down
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
It seems like a dead cat bounce. I'd be careful writing any covered calls with TSLA only because the uptick rule is in effect.
edit: Seems like we are headed down
Looks like you are too far away from the share price for smaller strike increments. I'm seeing $50 increments below a $700 strike for May 27 and then progressively smaller the closer to the current share price.
Yes, as @mongo also highlighted, you both are probably right. It seems to get better the less DTE you get. Are you on IBKR too?
Anyone out here on another brokerage platform can see more granular strikes for 5/27 below 600?
Fidelity for 5/27 ... 740, 720, 700, 650, 600 ... 50 increments to 200
TheTalkingMule
Distributed Energy Enthusiast
Set my first BPS limit order since the Janupocalypse just a little while ago with SP at 895. Literally the exact moment we started ratcheting up.
I think I signaled recovery to the universe. You're all welcome.
I find that happens a LOT. In both directions. Strong reminder we are definitely a herd.
Even stronger reminder of how the options market runs TSLA. I didn't think TSLA was going up. I was just fairly sure it wouldn't go down to 700 next week. Many folks likely have the same sentiment today.
I think I signaled recovery to the universe. You're all welcome.
I find that happens a LOT. In both directions. Strong reminder we are definitely a herd.
Even stronger reminder of how the options market runs TSLA. I didn't think TSLA was going up. I was just fairly sure it wouldn't go down to 700 next week. Many folks likely have the same sentiment today.
Zhelko Dimic
Careful bull
I recommend this strategy for light leveraging at quite low risk. This will create 20K-100K at most, for a $1M-$2M portfolio.
Advantage is low risk, "just a bit of extra return" to buy more shares, and very low or no maintenance.
Main con is it would work poorly for 1. someone with itchy fingers, or 2. someone who can't stand volatility.
If you have only shares, and you get nervous when TSLA drops 20-30-40%, this will add just a bit to that stress, so it's person dependent.*
Another danger is that at the end of couple of winning cycles, you feel like you're not optimizing returns for time. This is a dangerous thought, as optimizing returns increases risk; it could be done, as I do do it, but it's best done after one has a serious burn in their history to guide them
With higher leverage, stakes are higher and serious patience and calm is required.I've run this strategy for years with low leverage, and then leveraging up one way or another when TSLA drops precipitously. At this point I'm close to my max comfortable leverage, so I'd sweat a bit if we were to drop to $600; just in terms of margin call that I need to fend off by buying short term puts. I wouldn't exit positions though.
Otherwise, I couldn't care less. I watched this movie, and I know how it ends...
*(More tax efficient strategy may be buying leaps, or borrowing to buy shares (small quantities!) if everything goes right. However, in that case one doesn't get to sell time-premium, instead it's buying it, or paying interest, so returns are worse when stock doesn't appreciate rapidly. And vice versa, so those two would be higher risk higher risk type of strategy. I see put selling as a more defensive strategy with some, limited upside, and very low risk.)
Zhelko Dimic
Careful bull
Bear market bounces are rip your head off type of rallies...
Having said that, there are 3 strong levels of resistance btw 900 and 1000.
I think you like to live dangerous, right?
Yesterday's open interest shifted to lower strikes and puts. Based on similar to a previous setup, I'd expected today to go sideways ... close enough.
With yesterday's down pressure, I sold three BPS 50 wide for 4/29 at 830, 820, and 795, all the same premium. Could have gone wider, optimized for premium at a strike I felt good about at each sale. Would love to see a 875 or better close Friday.
BTC @$0.15 after reaching profit threshold of 75%
I caught the bump back to 900 this morning and closed the 800 strike puts I had open. Partly I didn't like the 800 strike as much overnight as I did yesterday largely because I had accidentally gone roughly 4x overweight in one account than I wanted to be (I blame it on Fidelity's interface - I am totally innocent in buying positions in the wrong account). Partly I had a small profit to show for things. In at $14 and out at $12 roughly. I kept the 750s. Small profit in this case also means that I hit my minimum weekly income target in 1 day, so actually awfully good.
I also kept the insurance puts as I think it likely I'll be selling puts again for May 6 and I can avoid churning those insurance puts when I don't need to.
I figure that today's flat to up is strongly tied to the uptick rule being in effect today. I don't know that tomorrow will be another leg down, but I sort of expect that it will.
The larger problem, and I see it as largely macro driven, is where will the eager new buyers come from that will keep buying to push the shares back to 1050, 1100, ...? I figure they'll be back in June, but until then - I see a lot more (bad) macro news than (good) Tesla news coming.
I like playing both sides of things - for today I don't yet see enough upward move to open new cc's for May 6. Since I closed puts today, tomorrow is the soonest I will open replacements. I'm biased towards taking advantage of a strong down leg tomorrow though, with cash ready to buy, Buy, BUY instead of selling new CSP.
I also kept the insurance puts as I think it likely I'll be selling puts again for May 6 and I can avoid churning those insurance puts when I don't need to.
I figure that today's flat to up is strongly tied to the uptick rule being in effect today. I don't know that tomorrow will be another leg down, but I sort of expect that it will.
The larger problem, and I see it as largely macro driven, is where will the eager new buyers come from that will keep buying to push the shares back to 1050, 1100, ...? I figure they'll be back in June, but until then - I see a lot more (bad) macro news than (good) Tesla news coming.
I like playing both sides of things - for today I don't yet see enough upward move to open new cc's for May 6. Since I closed puts today, tomorrow is the soonest I will open replacements. I'm biased towards taking advantage of a strong down leg tomorrow though, with cash ready to buy, Buy, BUY instead of selling new CSP.
This dynamic of setting a limit and missing out on a position I want has led me to move most of my opening and closing short term transactions to market orders. The opens are frequently .20 wide b/a spreads, so with patience I can get half of that. Getting .10 on a position that I've seen lose 1.00 while I'm waiting has led me to take the open when I want it and not muck about.
Similarly on the close, except b/a spread is usually .05 or so. With patience I might get .02 of that. I'll care a lot more after a split and we're handling a significantly larger number of contracts with much smaller credits, but the b/a will also shrink a lot.
Definitely NOT-ADVICE - I've just found that the combination of avoiding those occasional missing out situations, plus immediate resolution, is worth more than close watching a position awaiting a fill.
The other approach, that I think you're using, is more of a "this is the price I'm ready to open for" idea, and then we either reach it or we don't. Clearly this is a job for limit orders
Can you share your expectation beforehand?
Knowing that there is a high probability of us going sideways would have helped ^^
Can you share your expectation beforehand?
Knowing that there is a high probability of us going sideways would have helped ^^
Ha, if I truly knew
... it is nothing more than taking a stab at spotting pattens , I'm a newbie trying to fit together the bits. Same that I shared in the below post, no analysis, just sharing the gamma exposure calculations. I'll post later tonight today's action and see if I can spot some parallel. Wiki - Selling TSLA Options - Be the House
I really want to get into this but would love to dip into a quick conversation if I had questions, which I will have. A revolving monthly 1% on my 1500 shares would effectively change my life as I've only made 60k in liquid a year for over a decade. Adding a few grand in the coffers would be...
teslamotorsclub.com
Ha, if I truly knew
Wiki - Selling TSLA Options - Be the House
I really want to get into this but would love to dip into a quick conversation if I had questions, which I will have. A revolving monthly 1% on my 1500 shares would effectively change my life as I've only made 60k in liquid a year for over a decade. Adding a few grand in the coffers would be...
But thanks in advance.
I read here all the great moves after the fact.. and i am here doing everythig wrong i can ... at least thats how it feels to me -.-
1110 for next week against 950 Jan 24 CC's i bought yesterday ... ~ $1 for each
(hoping it hits, so I can convert back to shares)
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scubastevo80
Member
I wrote BCS 1090/1170 this morning during the bounce, and then closed it just after 1pm at about 55% gain. I'd love to tell you I made more than $80 on this trade but it is what it is. I think $1050 is probably safe, but who knows with the volatility we're seeing. I don't see any TSLA specific catalysts between now and then that would drive the stock up 15% though.
Excluding this week, below are the top 50 TSLA weekly drops. Covid is the first (-25.60%)
72% of the time, the stock price is
4 weeks later.
66% of the time, the stock price is️ 8 weeks later.
72% of the time, the stock price is
4 weeks later.66% of the time, the stock price is
️ 8 weeks later.
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