Wiki Selling TSLA Options - Be the House

[traxila]

Don't forget that there is also an ETF fee, and I've heard some of them can be pretty hefty, such that trading at a 0% change for days can even eat away at its performance.

Which might make it a nice candidate for long term shorting. These leveraged etfs eat themselves up like options with theta.

 

[AquaY]

I think its not a good use of time focusing on this ETF.
Time is better spent understanding options risk and strategies and paying attention to macros and industry/company issues

 

[dc_h]

Another MMD. No more BPS for me this week, but seems like a good day trade opportunity.

 

[Chenkers]

I'd closed my previous 630/670 BPS yesterday and also opened some 760/800 BCS. Today I've re-opened a smaller quantity of 630/670 BPS along with some 610/650 BPS. I managed to time the MMD OK getting $5 and $2 respectively.

Now to let the MM's do their thing.

 

[intelligator]

Just before the dip, STO 7/15 -675 CSP at $6.00

 

[scubastevo80]

Had a bps 7/15 630/530 that I wrote Monday for $2.60. Just rolled to 7/22 590/490 for $4. I am now trying to roll lower and lower for premium since I feel like we’re around a bottom. I could be wrong but I’m willing to take the risk at these prices ahead of the split.

 

[Knightshade]

For example this Monday I sold -600/+500 spreads, with -600 being ~20% OTM from the open

And for the -600 spread I got $1.23/sh, or $123 in premium. And required $10,000 in backing (both #s are per spread)

That's a return of 1.23% weekly if they expire worthless... (or probably more like $1.10-$1.15 if I close them out for pennies earlier sometime to be extra safe)

Which compounds to over 50% per year.

FWIW just closed these at $1.11/sh profit from a close-at-90%-or-better limit order I had in.

 

[Max Plaid]

Had a bps 7/15 630/530 that I wrote Monday for $2.60. Just rolled to 7/22 590/490 for $4. I am now trying to roll lower and lower for premium since I feel like we’re around a bottom. I could be wrong but I’m willing to take the risk at these prices ahead of the split.

Split, you say? GOOGL 20:1 after close tomorrow, not that you'd know it from the price action....

 

[scubastevo80]

Split, you say? GOOGL 20:1 after close tomorrow, not that you'd know it from the price action....

I also own GOOGL and dont believe you’d see a benefit, if any, until after the reduced split-adjusted price… same for TSLA. Either way, I think this helps with the floor price more than it does to encourage upward price pressure.

 

[Max Plaid]

I also own GOOGL and dont believe you’d see a benefit, if any, until after the reduced split-adjusted price… same for TSLA. Either way, I think this helps with the floor price more than it does to encourage upward price pressure.

Historically stocks rise before a split, we saw it most recently with $AMZN, $NVDA before that, $TSLA a couple of years ago...

Maybe it's dependent on the amount of short interest, perhaps GOOGL has none, so little, or no effect

Nothing happening today, maybe tomorrow we'll see a last-minutes run?

 

[ninpb]

Another good week for me partly thanks to everybody in this thread. In preparation for my family vacation next week, I closed out all of my weeklies except for one where I have the BTC off by a penny. Hey, gotta get my last rush before a whole week off. I'll be able to prep for the trip tomorrow... at work.

Good luck all and make a lot of money during earnings week and make me jealous!

PS. I might be able to stop by Fremont on the trip and take a pic.

 

[OrthoSurg]

AAPL in interesting bullish breakout bringing the qqq with it. Might be a good precipitating factor for a bullish trend in the Nasdaq. Hope TSLA follows

 

[Drezil]

AAPL in interesting bullish breakout bringing the qqq with it. Might be a good precipitating factor for a bullish trend in the Nasdaq. Hope TSLA follows

- what he says about AAPL .. (video is from yesterday.. every day ~2h after close the next one comes).

 

[Jim Holder]

Hi all, long time lurker, refreshed Model X owner and huge fan and Long TSLA.

Trying to learn about options and see if there's a smart way out of a TSLA pickle I got myself into

I’m upside down on a about 400 day trade TSLA shares I bought when they were up in the high $900’s-$1,025’s, hoping to ride them for some profit. I got stuck with them as the price fell in May/June.

Right now I’m stuck with around $350k on margin (@8.5% int.) and looking for best way how to get off margin and cover the interest, and hopefully even make some money while waiting for TSLA to recover back up there.

Since I’m planning to cut the 400 day-trading shares loose once TSLA recovers at least to b/e so I’m not longer on margin, does it make sense for me to sell a covered call today for 6mo or 12 mo. out at say $1,050 strike, and pocket the premium now (which will cover the interest between now and then) and the actual stock purchase price at assignment will pay off margin loan.

(I’ll be keeping the other 950 of the shares Long.)

I've attached a screenshot of my unrealized gains/loses/positions.

Any suggestions how to best deal with this? Sell a CC for 400 shares @ the highest number $1,088 or $1,067, does it make a difference? and what strike date? Lastly, what are some downsides to this idea and any better suggestions?

Thanks!!

 

[Knightshade]

First thing I'd suggest is you move to a broker that at least uses lube on their margin rate- IBKR you'd be looking at half that rate or less for example on 350k

 

[Jim Holder]

First thing I'd suggest is you move to a broker that at least uses lube on their margin rate- IBKR you'd be looking at half that rate or less for example on 350k

Wow, had no idea. Would I have to transfer the whole account and would IBR assume/pay off the margin loan? How does that work?

I also heard that IBKR is very aggressive with margin requirements and one can trip into an automatic call liquidation quite easily, where’s my current broker (TD) is a bit more flexible around this (dunno if this is accurate).

I’m sitting now at 60% equity (TD requires 50%), so I’m safe until TSLA drops to $584 or so I’m in PNR territory

 

[MikeC]

Hi all, long time lurker, refreshed Model X owner and huge fan and Long TSLA.

Trying to learn about options and see if there's a smart way out of a TSLA pickle I got myself into

I’m upside down on a about 400 day trade TSLA shares I bought when they were up in the high $900’s-$1,025’s, hoping to ride them for some profit. I got stuck with them as the price fell in May/June.

Right now I’m stuck with around $350k on margin (@8.5% int.) and looking for best way how to get off margin and cover the interest, and hopefully even make some money while waiting for TSLA to recover back up there.

Since I’m planning to cut the 400 day-trading shares loose once TSLA recovers at least to b/e so I’m not longer on margin, does it make sense for me to sell a covered call today for 6mo or 12 mo. out at say $1,050 strike, and pocket the premium now (which will cover the interest between now and then) and the actual stock purchase price at assignment will pay off margin loan.

(I’ll be keeping the other 950 of the shares Long.)

I've attached a screenshot of my unrealized gains/loses/positions.

Any suggestions how to best deal with this? Sell a CC for 400 shares @ the highest number $1,088 or $1,067, does it make a difference? and what strike date? Lastly, what are some downsides to this idea and any better suggestions?

Thanks!!




View attachment 828626

Have you considered leveraging with LEAPS instead of margin? You could sell around half your total shares (maybe ~650) to pay off the margin and then buy some 2024s while the price is low.

The downside is you’re risking some of your non-trading shares if we trade flat for the next 2 years (but still seems less painful than paying out 8.5% and no risk of margin call, which also risks your non-trading shares).

 

[Jim Holder]

Have you considered leveraging with LEAPS instead of margin? You could sell around half your total shares (maybe ~650) to pay off the margin and then buy some 2024s while the price is low.

The downside is you’re risking some of your non-trading shares if we trade flat for the next 2 years (but still seems less painful than paying out 8.5% and no risk of margin call, which also risks your non-trading shares).

Interesting idea. I guess I have to weigh the different suggestions and choose one that has a good balance between dangerous and best upside.

 

[sonofjorel]

Wow, had no idea. Would I have to transfer the whole account and would IBR assume/pay off the margin loan? How does that work?

I also heard that IBKR is very aggressive with margin requirements and one can trip into an automatic call liquidation quite easily, where’s my current broker (TD) is a bit more flexible around this (dunno if this is accurate).

I’m sitting now at 60% equity (TD requires 50%), so I’m safe until TSLA drops to $584 or so I’m in PNR territory

You can call TD and ask for a lower margin rate. Point out that other brokers offer lower rates and provide those rates to the TD rep you speak to. $350k is a good amount to be collecting interest on so I doubt they’d want to let you go elsewhere. You can buy cheap puts to get out of PNR.

 

[vikings123]

Hi all, long time lurker, refreshed Model X owner and huge fan and Long TSLA.

Trying to learn about options and see if there's a smart way out of a TSLA pickle I got myself into

I’m upside down on a about 400 day trade TSLA shares I bought when they were up in the high $900’s-$1,025’s, hoping to ride them for some profit. I got stuck with them as the price fell in May/June.

Right now I’m stuck with around $350k on margin (@8.5% int.) and looking for best way how to get off margin and cover the interest, and hopefully even make some money while waiting for TSLA to recover back up there.

Since I’m planning to cut the 400 day-trading shares loose once TSLA recovers at least to b/e so I’m not longer on margin, does it make sense for me to sell a covered call today for 6mo or 12 mo. out at say $1,050 strike, and pocket the premium now (which will cover the interest between now and then) and the actual stock purchase price at assignment will pay off margin loan.

(I’ll be keeping the other 950 of the shares Long.)

I've attached a screenshot of my unrealized gains/loses/positions.

Any suggestions how to best deal with this? Sell a CC for 400 shares @ the highest number $1,088 or $1,067, does it make a difference? and what strike date? Lastly, what are some downsides to this idea and any better suggestions?

Thanks!!




View attachment 828626

It depends on what your goal is. Are you just trying to get out of these at close to break even? Are you trying to reduce margin?

I think it’s probably a combination of finding a better broker and selling ITM calls against those 400 shares. Selling the deep ITM calls will help reduce margin balance and cover for any short term risk due to macros and/or Q2 impacts on SP.