I had a 875p that I didn’t bother closing. Fully expected to be assigned shares and was just going to wheel it. Pleasantly surprised that they expired instead. Notice SP bump up to 878 in AH. Still thought it was close enough that I would get assigned (since close was around 871). Definitely a first for me.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
⚡️ELECTROMAN⚡️
Village Idiot
What would your current strategy be, at todays prices? I'm assuming you wouldn't sell a weekly for $11.
Honestly I dont have a good answer to a 10:1, let alone a 20:1. Best I can do is lower strike & less contracts. Im also hoping the spread will be improved with a lower stock price and volatily will subside somewhat which means more safety to the lower strikes.
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A bit split and big increase in number of contracts is going to enhance my thinking about moving trading accounts to Tastyworks. They do $1 per contract on entry, $0 on exit, with a limit of $10 for each leg. So a 50 contract BPS will cost $20 in, $0 out, for the commission. Or in our new world order, and with a limit of 200 contracts per leg per ticket, a 500x BPS position will cost $60 in ($10 for each half of the spread, 3 transaction tickets) and $0 out (vs the $600 in (~$300 for each half of the spread) and $600 out unless the close of a short position is $0.65, in whch case that 1/2 of the exit is free. $60 vs $900 if I got all of my math right - that moves the needle for me.
Ya I'm also thinking of Tastyworks. Changing brokers especially when I'm holding crap ton of naked short options is a bit nerve wrecking for me. Has anyone tried Tastyworks vs IBKR?
Some of my friends say they're able to negotiate a zero commission deal with TOS. I don't know how reliable that is, though.
Sorry to disagree, but yahoo shows Monday’s low as $975, so you could not sell a put when it was at 950. Also Friday’s close was $870, which I would not classify as “damn thing almost went ITM”. Furthermore, Friday’s high of $934 was $134 OTM, so a perfect time to buyback for a decent profit after 4 days of theta decay. If this is too much stress, perhaps take a break and reconsider your strategy. BTW, I had to deal with -p1000s, which clearly were DITM.
Edit: sorry cyber bro, I missed the $821 intraweek low.
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jeewee3000
Active Member
Good post. But in his defense, "damn thing almost went ITM" refers to the 821 USD low later in the week. Ask me how I know
I would call your broker for an explanation. You definitely should be assigned shares at the $875, since closing was $870.
Ahhhh, good point, I missed that.Good post. But in his defense, "damn thing almost went ITM" refers to the 821 USD low later in the week. Ask me how I know
I been seeing lots of pain here and it’s heartbreaking. Many of us got into BPS/IC/CSP/BCS strategy to make extra income. So trying to see if there is some kind of overarching theme here…
I typically sell BPS 15-17% OTM. I would say 15%ish is about average for most weeks. I stick by my rules to do nothing until late Thursday and more often Friday to roll. Our strategy is time decay right?
I have never found a need to roll months or years to save my position. I’m not getting why I see this often here. If I remember correctly, ~2 years of options play, only once had I roll two weeks forward and that was my CC during the Hertz’s event. These CC eventually expired.
I find locking up the long term margins/shares a terrible proposition. I see a lot of midweek rolls and not seeing the week play out. If rolling I alway take max strike improvements as priority at near break even to small credit.
Here is my guess what maybe happening?:
Opening too aggressive BPS/CC?
And/or
Greed/Emotions making the decisions?
I typically sell BPS 15-17% OTM. I would say 15%ish is about average for most weeks. I stick by my rules to do nothing until late Thursday and more often Friday to roll. Our strategy is time decay right?
I have never found a need to roll months or years to save my position. I’m not getting why I see this often here. If I remember correctly, ~2 years of options play, only once had I roll two weeks forward and that was my CC during the Hertz’s event. These CC eventually expired.
I find locking up the long term margins/shares a terrible proposition. I see a lot of midweek rolls and not seeing the week play out. If rolling I alway take max strike improvements as priority at near break even to small credit.
Here is my guess what maybe happening?:
Opening too aggressive BPS/CC?
And/or
Greed/Emotions making the decisions?
And their platform is probably the best for option trading, they have good customer support and are very available by phone.
It's been a few year since I've used them but TOS dropped commissions when I asked.
oops i meant i sold it on tuesdayGood post. But in his defense, "damn thing almost went ITM" refers to the 821 USD low later in the week. Ask me how I know
Market might reverse Wednesday after the Fed meeting, but I'm afraid we are Red the next two days. I will be looking to open 1020/1140 BCS to make IC with the BPS I opened (too early) on Friday. If we climb Wednesday I will open more BCS into strength. I want to get something on the BCS side this week and my thought is if we keep dropping, near the open today might be my only chance. I'm usually wrong, so if we climb hard out of the gate today - you're welcome.
USA Tax related question. "consult your tax advisor" I know I know...lol
I'm relatively new to selling puts. I have a 930 that expires this week. I may take the shares but I may roll it out a week and down to 920. I have a faint recollection that closing and selling puts that are in the money have different, potentially negative, tax consequences. Am I dreaming this up and it doesn't make a difference? Just curious as this answer might dictate whether I take the shares or make the roll.
As an aside, I would probably just do it on Friday unless that's generally not the best idea.
Thank you all!
Best,
Gene
I'm relatively new to selling puts. I have a 930 that expires this week. I may take the shares but I may roll it out a week and down to 920. I have a faint recollection that closing and selling puts that are in the money have different, potentially negative, tax consequences. Am I dreaming this up and it doesn't make a difference? Just curious as this answer might dictate whether I take the shares or make the roll.
As an aside, I would probably just do it on Friday unless that's generally not the best idea.
Thank you all!
Best,
Gene
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