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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Based on the $340 mid spread at close, $710 SP would be right about 0 time value. No way to tell when during the day they were executed though.
chiller
Member
They had lost all their value some time ago. (This is for June 03)
You could have waited to market open and sold both the shares and the 980 Puts, and would have been slightly ahead from the few cents of time value left in the puts. (At least that is my experience with the assignments I have gotten on E*TRADE.)
bubb
Member
Yep, I had been offline since the weekend and was more or less resigned to it, thankfully have cash to avoid margin. I use thinkorswim w/ a simple custom study for extrinsic at the mark to guess the risk for deep ITM, although the open interest seems pretty important too. Seems like once you are ~250+ ITM the liquidity really dries up and you are best rolling monthly/non-weekly expirations if you want a fighting chance to delay assignment.
corduroy
Active Member
I rolled my -750p's to next week -730 for $0. I'm only using max strike improvement rolls now, not worrying about any credits. In pure capital preservation mode.
My -690/590s opened when the SP was around $915 at 25% OTM are my last worry for this week. I can't believe these are in play, but here we are. Going to wait until tomorrow on these and hopefully close them out.
Good luck all.
My -690/590s opened when the SP was around $915 at 25% OTM are my last worry for this week. I can't believe these are in play, but here we are. Going to wait until tomorrow on these and hopefully close them out.
Good luck all.
jeewee3000
Active Member
Anyone selling calls today? My mind says "wait for a green day" but my gut says it couldn't hurt to sell some $750cc's expiring tomorrow.
Looks to me like we are going to break out soon
Thanks for sharing yet another play on price and time. Interesting, tempting , seems to be good up or down from 740 to 680, glad it exceeds my option level
Already have 660 and 650 short sided BPS 50 wide for the 20th."Wednesday would have been a great day for selling the call option in question and then buying the same strike option with a later expiration date when the market makes that option available at the same price. On strong up days you buy the new expiration date of the option first and then sell the older option (same strike) when it's valuable enough to pay for the call with the later expiration date. I deal with deep in the money options, so the two expiration dates are within $2 and $20 of each other. I don't do this particular rolling in non-IRA accounts because of the tax consequences, but in certain circumstances (slight gain on the sale and not a loss) it might make sense to do so."
does anyone know what is the significance of that $2-$20 range that Papafox mentioned this morning? why $18?
TIA !
does anyone know what is the significance of that $2-$20 range that Papafox mentioned this morning? why $18?
TIA !
jeewee3000
Active Member
I bet you say that to all the girls.
jeewee3000
Active Member
I read that range quite literally. Let's say he's trading $500 strike LEAPS, and the JAN2024 versus JUN2024 LEAP option pricing has a difference of around $2 to $20 (i.e. in that ballpark, usually it can be a lot more).
His strategy on predictable days (as if those exist
) is to sell the old/closer LEAP at the day's high and buy the new LEAP with farther out strike at the day's low for the same amount.Since the difference in price (at a fixed SP) is in the $2 - $20 ballpark (i.e. small IMO, for options this far out), the SP and/or IV needs to move little for his strategy to work out succesfully.
That is my interpretation.
jschwefel
Tesla fan/TSLA, Model Y and Cybertruck owner.
This is my new favorite thread! The "TSLA & the Investment World" thread has become unreadable.
BTW, like many here, I'm just trying to survive this downturn and not do anything I'll regret later. My short puts are DITM, and my margin balance is dropping daily. I'm really trying NOT to sell any chairs. Sure would be nice if the stock turns around soon.
BTW, like many here, I'm just trying to survive this downturn and not do anything I'll regret later. My short puts are DITM, and my margin balance is dropping daily. I'm really trying NOT to sell any chairs. Sure would be nice if the stock turns around soon.
bkp_duke
Well-Known Member
Sold 7 x 800 CC's for tomorrow.
You are all welcome. This MUST be the reason the SP is rising, right?
You are all welcome. This MUST be the reason the SP is rising, right?
I can confirm a (still) DITM Jan23 to Jun23 roll had a $25 price difference yesterday.I read that range quite literally. Let's say he's trading $500 strike LEAPS, and the JAN2024 versus JUN2024 LEAP option pricing has a difference of around $2 to $20 (i.e. in that ballpark, usually it can be a lot more).
His strategy on predictable days (as if those exist
Since the difference in price (at a fixed SP) is in the $2 - $20 ballpark (i.e. small IMO, for options this far out), the SP and/or IV needs to move little for his strategy to work out succesfully.
That is my interpretation.
No attempt to time that trade.
It is a green day!
And yes, I sold some, but for next week expiry - I'm very bearish right now and am happy to take the $20 premium now, ask questions later, well "later" as in mid next week
jeewee3000
Active Member
I went for some 5/20 $750cc's. And $770cc's.
I don't have a gambling problem, I swear.
Ya, I'm sitting on some Jan23 c500s that I'm having to think about more than I'd like. I would love to do a straight trade to June23 c500s. But I'm not nearly good enough to sell early on a down day and then try to buy later in the day. I can almost guarantee the day I do that will be the day the SP reverses and shoots up. Guaranteed.
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