Wiki Selling TSLA Options - Be the House

[corduroy]

When IVs and premiums are down, I'm finding it's good to have another stock to trade. Of course I am all in with TSLA, but I have also opportunistically traded NVDA options for the last 9 months. By having another stock to trade, I am less likely to force TSLA trades when setups aren't ideal, and less likely to get myself into trouble.

This week I have done pretty well selling ICs on NVDA and GOOGL before earnings. I've not made any trades on TSLA with premiums and IV so low.

I know our major advantage with TSLA is knowing the company inside and out, probably more than the "experts". While I don't have that with other stocks, I find it manageable to follow 1 or 2 other companies with a few minutes extra a day. Just enough info to trade on.

A benefit I have trading NVDA is that I can use my favorite strategy, the IC. I rarely run anything on the short call side of TSLA because I am always afraid of huge upside moves. I am more dispassionate with NVDA (and more neutral). I've also utilized rolls between TSLA and NVDA to de-risk from one to the other on a couple occasions, which opens up some interesting management possibilities.

Not advice of course.

 

[Yoona]

quick FOMC play, 25% in 15 mins

a few here and there - they add up to

 

[intelligator]

BTC 7/29 745 CSP at 0.50 , snagging 90% in one day. Clearly could have expired worthless, why be greedy. Now focusing on rolling out 7/29 780 CC that may not survive.

 

[Discoducky]

You are aiming at selling CCs for this Friday on next one?

I'm liking this pop, but was hoping for a bit more. Thinking about selling some $860s for this Friday, finger on the button right now...

 

[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?

This worked out really well for me, closed these 4 days later (yesterday) on a 3% Tesla drop, bought them out at 5.10 for a quick 70% gain which equated to $2300 per day! Those same calls are back up to almost $10 today so I really feel like I got the timing right.

 

[BornToFly]

I'm liking this pop, but was hoping for a bit more. Thinking about selling some $860s for this Friday, finger on the button right now...

You are braver than me. I debated rolling down 950CC to 910, but worried about GDP data tomorrow causing more pop and a short squeeze.

 

[Discoducky]

You are braver than me. I debated rolling down 950CC to 910, but worried about GDP data tomorrow causing more pop and a short squeeze.

Yep, tax free account so don't care if I get assigned and need some cash anyways to get back on the wheel with selling puts.

I bought these 1000 shares at $800 so no worries if I need to sell them for $860

 

[intelligator]

The $850 wall went up a bit and the $900 wall went down a bit. I'm waiting until after Fed news unless we spike to 850 prior.

... true, 850 went up quite a bit, put interest trimmed back as well. Will look for the MMD tomorrow morning as an opportunity to roll cc to next week before premiums are nil.

 

[dl003]

TSLA flat out refused to even enter the gap. GOOG and MSFT short squeezes surely helped. We are past the point for a fill & go. It either goes up from here or market is going to test the recent low @ 363.. Call IV held steady after Powell's presser so I think we have a legit extended rally on hand till SPY 410. Next week we might a have a little FOMO going into 8/4. July China sales coming out on Monday the week after should also help retain a lot of strength.

 

[BornToFly]

TSLA flat out refused to even enter the gap. GOOG and MSFT short squeezes surely helped. We are past the point for a fill & go. It either goes up from here or market is going to test the recent low @ 363.. Call IV held steady after Powell's presser so I think we have a legit extended rally on hand till SPY 410. Next week we might a have a little FOMO going into 8/4. July China sales coming out on Monday the week after should also help retain a lot of strength.

You mean the China July sales numbers that will be much lower than June sales, because of exports, and will be completely miss characterized by the media to create massive FUD and drop the SP? Those July numbers?....

 

[dl003]

You mean the China July sales numbers that will be much lower than June sales, because of exports, and will be completely miss characterized by the media to create massive FUD and drop the SP? Those July numbers?....

the one coming out on the 8th should have both exports and domestic sales, or so I thought?

 

[BornToFly]

the one coming out on the 8th should have both exports and domestic sales, or so I thought?

As far as I know they have a pretty good guess on domestic sales (from registrations), but production and export are a total guess since Tesla doesn't provide the data, and the usual suspects will try to make the sales numbers sounds bad....

 

[sunhelm]

As far as I know they have a pretty good guess on domestic sales (from registrations), but production and export are a total guess since Tesla doesn't provide the data, and the usual suspects will try to make the sales numbers sounds bad....

This guy from twitter reports the numbers (both exports and domestic sales, i.e., inferred from wholesale less exports)). Data is provided by the CPCA (China bureau on car sales).

https://twitter.com/x/status/1545320699291901952

 

[BornToFly]

I wonder if the new EV tax credit news tonight is going to cause another Hertz week scenario on our Calls.... I'm suddenly worried about the 910s I have.

 

[dl003]

I wonder if the new EV tax credit news tonight is going to cause another Hertz week scenario on our Calls.... I'm suddenly worried about the 910s I have.

Thanks for the heads up at midnight right before I go to bed. Restful sleep here I come.

Actually I have grown quite wary of this knd of “news.” Every time the stock outperforms in 2022, I have to ask myself if it is the market has come to its senses or if somebody knows something. Classic sell the news setup.

 

[Buckminster]

I'm already underwater on my sold calls. It is the weirdest sensation when your portfolio goes up massively in a day but all you think about is your sold calls that make a fraction of your portfolio. Sold puts don't bother me at all - keep rolling out.

 

[OrthoSurg]

I'm already underwater on my sold calls. It is the weirdest sensation when your portfolio goes up massively in a day but all you think about is your sold calls that make a fraction of your portfolio. Sold puts don't bother me at all - keep rolling out.

Yes, that mixed feeling of your sold calls getting ITM or close to be ITM. The bearish wish the stock doesn’t go up too fast. Our sold CCs make us experience the world of the bears or the shorts who doesn’t want to see Tesla go up. However I am still happy even if I have sold CCs because my overall position goes up however there I still a part of my brain that wishes it doesn’t go up too high too fast even if overall with my underwater puts I benefit a lot more when the stock rises fast than the opposite.

 

[samppa]

I too have 7/29 itm calls, -c780 and -c810, these were rolled from last week. Lots of intrinsic left on these so probably I'll wait until tomorrow to roll. Then I'll sell puts so that these become straddles.

Not worried, with this volatility tsla will have deep red days eventually.
Such a good problem to roll calls and let puts expire. I've been doing these sort of perma-straddles the last few weeks, it's been working great, and premiums have been amazing.

 

[ZsoZso]

I am also worried a bit about sold calls (covered or spreads) going ITM, but I prefer that to puts going ITM. Not just because of overall account gain due to the stock appreciation outweighing the value lost on options, but also because my available margin grows, so no danger of margin call. On the other hand, when the stock drops fast we get a double whammy: puts going ITM and margin getting thinner, which requires protective action, you can't just swallow the loss.

 

[Yoona]

could be explanation why it's green on the day of FOMC