Wiki Selling TSLA Options - Be the House

[elasalle]

Fingers got a bit itchy
Sold 10x 980 CCs for next week and bought 1 share.
I need to stop from getting tempted to sell jan 24's for a few more weeks ..plan is to sell against all shares.

 

[scubastevo80]

methinks there is reverse tomorrow...

i am curious if anyone is thinking of 7/22 buy-write 810 with 800cc 18 credit, 1 DTE

or is that a good/bad idea

I'm of the same mind. Put an order in to close my BPS for $0.05. I closed my BCS this morning at $0.50 (wrote at $1.51 on Tuesday), then opened an $820/$920 at $2.20. Closed that one at $1.20, and opened a subsequent one 845/945 at $2.00. I'm hoping we close around $820 today and then I'm likely to close this early tomorrow if we open flat/down. I'm not looking to hold throughout the day in the event we have further strength.

 

[Yoona]

 

[BornToFly]

I couldn't watch the SP today. Opened 650/550 BPS at the open. Before close opened additional 690/590 BPS. All for tomorrow. Just a little more gravy on top of a nice week of trading. Still have all my 900/1000 BCS for tomorrow.

 

[intelligator]

Wow, 800 is a thing, huh ... as if the edge interest dried up, gravitated to one strike ... get out the popcorn, let's see what tomorrow brings

 

[Yoona]

well.. if it really reverses you'll end up with shares that have cost basis of 792, not that nice if sp drops back to 700 or below and stays there..

good point, plus next week is FOMC again

 

[CHGolferJim]

Currently have <x CC open in several non-taxable accounts, mostly 0722$750 (until 7/22) and 2 x 0729$700 (waiting for next week). Interestingly, the credits for $10/1-week rolls on both have been steady within $1 all week despite SP and IV fluctuation, leading me to wait until 7/22 to see if those might expire OTM and/or close for dimes. Not expecting Friday’s close to be higher than today’s, but prepared if it moves.

Okay, 95% happy to have been wrong on that one! Rolled 0722-c$750 to 0729-c$755 for a $4.30 credit, so have $755 and $700 to watch next week. Prepared to take some flat/small weeks after a couple of huge credits in recent weeks with ATM rolls.

 

[WattsHappening]

Fingers got a bit itchy
Sold 10x 980 CCs for next week and bought 1 share.
I need to stop from getting tempted to sell jan 24's for a few more weeks ..plan is to sell against all shares.

Why are you selling Jan 24 CCs against all shares? Not questioning your judgment; just curious as to the strategy.

 

[elasalle]

Why are you selling Jan 24 CCs against all shares? Not questioning your judgment; just curious as to the strategy.

Here are a few reasons ..

My overall strategy has been:
1. All in TSLA . 2. Sell CC's as a hedge 3. Buy more shares to hedge against the CC's. Sell more CC's against shares from 3.
I am almost at 5x my initial shares and will soon finally be diversifying incrementally - mainly by taking out shares in personal account for $$, and keep trying to increase shares in 401k using this approach. The 5x is mainly all based on portfolio gains - added my wifes 401K around 2016, and some in my personal account. Principal in my personal account and 100% profits already removed, so gains mainly all on trading.

I don't like playing weeklies, because I don't like to be constantly on the edge lot's to monitor. IV up, down, SP up/down etc etc.
Also with weeklies, if one want good premium, you need closer strikes, and I don't want to sell CC's against all my shares at closer strikes with higher probability of touching.

I feel comfortable in this approach and it has worked for me multiple times. Selling (e.g.) Jan 24 2300+ strikes gives me a long runway and flexibility to manage them even with selling CC's against all my shares. When SP is high and if there is a big gap up, IV will jump, these very OTM Leaps jump in $ value and that would be good time to sell (& am waiting for the opportunity).

(Not all smooth sailing, but have survived 2018/2019 run ups .... but ended up with more shares. The past 2 dips in Feb etc allowed me to close sold CC's at 2200+ strikes which I had sold for more that like 120$ each at less than 20-30$)

+Previously all hit and trial approach, but now thinking what the price of leap CC should be to make it comparable to weeklies? Say if I sell a CC for 52$ for a CC that is 1 year out, I would be getting $1/week trade for the next 52 weeks ... so would one consider that a good trade ..especially since you can make this trade against all your shares and have time and runway to manage it?

So that's the main idea. cheers!!

 

[Yoona]

 

[Discoducky]

My $860 CCs will be rolled if needed to next week and will raise the strike as well as I don't want to have anything open for the week of the ASM (Annual Shareholder Meeting) since we'll approve a split and it should send the stock up depending on the date of the split.

Also sold $900 CCs already for 7/29 I got for $4.65 yesterday (which are now at $5.60) :0

 

[juanmedina]

Now I am worried about my 900's for next week lol. If we get there that would a 23% move from Monday the 18th open.

 

[OrthoSurg]

My $860 CCs will be rolled if needed to next week and will raise the strike as well as I don't want to have anything open for the week of the ASM (Annual Shareholder Meeting) since we'll approve a split and it should send the stock up depending on the date of the split.

Also sold $900 CCs already for 7/29 I got for $4.65 yesterday (which are now at $5.60) :0

Well you got a good price. Sold those 900 CCs for $1.60 2 days ago because I was expecting a push down after the earning calls. Now it seem the stock will go to $1200 with no train stop.

 

[Discoducky]

Well you got a good price. Sold those 900 CCs for $1.60 2 days ago because I was expecting a push down after the earning calls. Now it seem the stock will go to $1200 with no train stop.

I'm both worried and overjoyed. I love the options roller-coaster until it is >30% swings in one week, but when it is going up, it is mostly gravy so sa la vie!

 

[MP3Mike]

I don't want to have anything open for the week of the ASM (Annual Shareholder Meeting) since we'll approve a split and it should send the stock up depending on the date of the split.

No, we will approve the ability for the Board to issue additional shares. Then at some later time the Board will approve a split.

They say they intend to authorize a split, but they don't have to:

Our Board intends to approve the Stock Split, subject to and contingent upon stockholder approval of the Authorized Shares Amendment.

 

[OrthoSurg]

I'm both worried and overjoyed. I love the options roller-coaster until it is >30% swings in one week, but when it is going up, it is mostly gravy so sa la vie!

It if hits my 900 by the beginning of next week I’ll roll up and out for the following week, if it does again hit my strike price I’ll roll far out and far up at $1450 December to make a strangle with my -p1200 expiring in December this way I’ll pray every day we finish between 1300 and 1400 in 5 months :X

 

[ZsoZso]

Oh, but I countered that by selling 800CC as well as buying 700P, so this guarantees that we will have a surprise rally

As you can see my sacrifice worked!
But now I have a few -800CC that is getting deeper ITM.
I know, I should have closed or rolled them yesterday before we hit 800, but I had my hopes in MMs to protect that 800C wall
I am very disappointed in them, this morning they seem to have tried to push the SP down but gave up pretty quick.

So now I am asking for not-an-advice: should I roll these to next week, later or close them at the current loss before it gets worse?
I do not want them exercised because it is in a taxable account and those shares have a purchase price in the 70s (pre-split 360s), so the tax hit would be much worse than the loss for closing them.

ps: next week Fed report, that might cause a macro drop, so maybe that can save these if I roll ?

 

[juanmedina]

It if hits my 900 by the beginning of next week I’ll roll up and out for the following week, if it does again hit my strike price I’ll roll far out and far up at $1450 December to make a strangle with my -p1200 expiring in December this way I’ll pray every day we finish between 1300 and 1400 in 5 months :X

and then retire

 

[mongo]

As you can see my sacrifice worked!
But now I have a few -800CC that is getting deeper ITM.
I know, I should have closed or rolled them yesterday before we hit 800, but I had my hopes in MMs to protect that 800C wall
I am very disappointed in them, this morning they seem to have tried to push the SP down but gave up pretty quick.

So now I am asking for not-an-advice: should I roll these to next week, later or close them at the current loss before it gets worse.
I do not want them exercised because it is in a taxable account and those shares have a purchase price in the 70s (pre-split 360s), so the tax hit would be much worse than the loss for closing them.

ps: next week Fed report, that might cause a macro drop, so maybe that can save these if I roll ?

Non advice because I'm terrible at processing the data points.

With the recent moves, it seems hard to rely on a short time frame roll to improve things.
Two weeks out is annual meeting.
After that will likely be split announcement.

 

[Yoona]

so far, multiple fails to stay above 840