Wiki Selling TSLA Options - Be the House

[scubastevo80]

i'm waiting for the fed on wednesday to make some plays..

currently just a bit smooth sailing with portfolio-theta about 0 for maximum upside exposure, but some CC that will print if the fed raises interest rates by 1% instead of 0.75% that the market expects.

Same with me. No volatility today and I don't want to step in front of a move in the wrong direction which could be compounded on Wednesday. As I look right now, call and put premiums about 10% OTM are 35-45% down from Friday's close.

 

[Yoona]

TSLA stuck at the fibs... i've been daytrading -c820, up 49.2% in 3 hrs after 4 rounds

 

[Discoducky]

I just have this Friday -c900 and waiting for a spike up to test the 850 call wall this week to possibly sell more, but nervous about the Fed rate hike and don't want to have to roll to next week and risk any news surrounding the annual shareholder meeting and stock split announcement date.

 

[BornToFly]

I have noticed this too. Most likely this is just the post earnings IV drop.

Yeah, but I would have thought that uncertainty around the Fed Meeting Wednesday would have kept IV up a little...

 

[OrthoSurg]

My 900CCs sold at 1.60 are now worth 1.10. I feel like closing them because the FOMC could send us either side.

Easy choice if I had sold them for 6, the profit would be interesting however I am stucked in the Wait and see or act now on IV drop

 

[WattsHappening]

My 900CCs sold at 1.60 are now worth 1.10. I feel like closing them because the FOMC could send us either side.

Easy choice if I had sold them for 6, the profit would be interesting however I am stucked in the Wait and see or act now on IV drop

I'm in a similar situation.

I sold 925CCs for this Friday the morning after earnings were announced. I didn't wait long enough in the morning and sold at 1.00. Selling for $0.53 now. These feel safe to me (hard to see SP getting past the 900 wall by Friday eod), but since I was aggressive with the number of contracts, I'm definitely paying attention.

 

[Discoducky]

My 900CCs sold at 1.60 are now worth 1.10. I feel like closing them because the FOMC could send us either side.

Easy choice if I had sold them for 6, the profit would be interesting however I am stucked in the Wait and see or act now on IV drop

Sold mine at $4.65 but I'm still worried about the Fed. If they do a half point raise or guide for less, the top could pop off.

 

[Yoona]

 

[Discoducky]

View attachment 832620

So, you are saying there's a chance for a half raise?

Guess I'll continue to hold onto my -c900's

 

[Drezil]

View attachment 832620

So.. this means the market prices 0.75 in. And will relief ralley if it was right and tank if we get 1.0..
Do I have that correct?

 

[OrthoSurg]

I'm in a similar situation.

I sold 925CCs for this Friday the morning after earnings were announced. I didn't wait long enough in the morning and sold at 1.00. Selling for $0.53 now. These feel safe to me (hard to see SP getting past the 900 wall by Friday eod), but since I was aggressive with the number of contracts, I'm definitely paying attention.

Sold them at 1.60
My order to BTC at 0.80 today filled in. Happy with a 50% profit for what had been a -250% position the day after earnings.

Will wait after AAPL, GOOG, AMZN earnings and see what Wednesday has for us. Might sell some other CCs if we have a big green day tomorrow

 

[Yoona]

So.. this means the market prices 0.75 in. And will relief ralley if it was right and tank if we get 1.0..
Do I have that correct?

IIRC from the last FOMC... wait 5 mins before the 2pm news release, then sell ATM Straddle with Stop Loss on both sides... the big move of the winning side will pay more than enough the small loss of the losing side

trying to find that screenshot...

 

[john tanglewoo]

Took advantage of the pop on earnings Friday and sold 8 Aug 19 930c's, which at the time was around 17% out of the money (but the stock had already risen 10%).

Got them at 16.25, hoping things stay relatively stable until I can get out. Based on the charts looked like there were some strong levels of resistance ahead.

I'm always wondering if I should continue selling 5-10 contracts 20% OTM looking for ideal $15-25 premium levels, or I should go even further out of the money, double or triple the amount contracts, and just look for $1-5 levels of premium?

 

[WattsHappening]

Took advantage of the pop on earnings Friday and sold 8 Aug 19 930c's, which at the time was around 17% out of the money (but the stock had already risen 10%).

Got them at 16.25, hoping things stay relatively stable until I can get out. Based on the charts looked like there were some strong levels of resistance ahead.

I'm always wondering if I should continue selling 5-10 contracts 20% OTM looking for ideal $15-25 premium levels, or I should go even further out of the money, double or triple the amount contracts, and just look for $1-5 levels of premium?

I've considered the same thing for covered calls: (1) more time for higher premiums, (2) less OTM for higher premiums, or (3) higher number of contracts?

The previous time I chose the second option, selling CCs around 8-10% OTM with DTE of 5 (sell on Friday or Monday). Those have worked well until last week, when my 7/22 CC750 blew up on me. I rolled to 7/29 CC765 and am holding for now. Ready to roll again or let get exercised this week, depending on what happens the next couple of days. I'm perfectly fine experimenting with the wheel on this one.

I've come to the realization that I do not want to lose any shares. So this time around, I went with the 3rd option. I was a bit nervous on Thursday, but the 20% OTM rule seems to be holding, even though I went seven DTM rather than the recommended 5 or less).

Given I don't want to lose shares, I don't feel comfortable with option 1: selling time. TSLA is so volatile, and we know the SP can spike on little or no news. I prefer lower risk as I want to minimize the chances of losing shares. With some near term potential catalysts such as shareholder meeting (stock split and who knows what else) and possibly an upgrade of credit to investment grade, I don't want to be short calls for longer than a week.

Good luck with your decisions.

 

[traxila]

I've considered the same thing for covered calls: (1) more time for higher premiums, (2) less OTM for higher premiums, or (3) higher number of contracts?

The previous time I chose the second option, selling CCs around 8-10% OTM with DTE of 5 (sell on Friday or Monday). Those have worked well until last week, when my 7/22 CC750 blew up on me. I rolled to 7/29 CC765 and am holding for now. Ready to roll again or let get exercised this week, depending on what happens the next couple of days. I'm perfectly fine experimenting with the wheel on this one.

I've come to the realization that I do not want to lose any shares. So this time around, I went with the 3rd option. I was a bit nervous on Thursday, but the 20% OTM rule seems to be holding, even though I went seven DTM rather than the recommended 5 or less).

Given I don't want to lose shares, I don't feel comfortable with option 1: selling time. TSLA is so volatile, and we know the SP can spike on little or no news. I prefer lower risk as I want to minimize the chances of losing shares. With some near term potential catalysts such as shareholder meeting (stock split and who knows what else) and possibly an upgrade of credit to investment grade, I don't want to be short calls for longer than a week.

Good luck with your decisions.

I am also more aggressive with CCs in my 401k. Even sell ATM occasionally. BUT, shares get called away, eh, no biggie. No taxes and sell a CSP.

All my other accounts… a taxable event would absolutely suck and I would have to market time to the tune of at least 35% just to break even with the same number of shares.

As we all know, tax considerations can be huge with our option selling ways. I envy those with the ability to go into cash at will without tax consequences. I have no doubt that part of my portfolio would have been liquidated and rebought the past few months (already done in 401k).

But there is no way I am smart enough to reliably hit that 35% target. Not even close.

 

[TheTalkingMule]

~$1.57 premium for 8/5 $650/550 BPS with SP at $792......18% out. That's absurdly low premium, right?

Guess that's a good sign of put demand dwindling.

 

[corduroy]

~$1.57 premium for 8/5 $650/550 BPS with SP at $792......18% out. That's absurdly low premium, right?

Guess that's a good sign of put demand dwindling.

Yes, IV is low. I think we all got used to high IV the last few months.

TSLA implied volatility (IV) is 54.8, which is in the 31% percentile rank. This means that 31% of the time the IV was lower in the last year than the current level. The current IV (54.8) is -17.2% below its 20 day moving average (66.2) indicating implied volatility is trending lower.

I have a GTC limit order set for that same BPS for $3, but I doubt it will fill.

 

[traxila]

Sold a -790P Nov 18 strike at 102.25.

Sounds pretty safe, no? Assuming success works out to 6 points a week. Not so bad.

Like my chances.

 

[UltradoomY]

Sold a -790P Nov 18 strike at 102.25.

Sounds pretty safe, no? Assuming success works out to 6 points a week. Not so bad.

Like my chances.

Only thing I don't like is that is $263.333333 after a 3 way split - $750 probably better for that.
Still not a bad play

 

[brianhn1]

Sooo which one of you sold some spreads this morning at around 9:47? Was poking around on TOS and found options flows.

TSLA 10/21/22 -P590/+P580, qty. 460 contracts for ~$1.70 premium per share.

-That's only $460k collateral so maybe just medium sized option trader?
-Looks to be 25% OTM.
-Not sure what's the advantage of being so far out in October.