I never had a roll function, always a close and reopen, but I wonder why RH would remove this on expiry day, other than to hamper retail traders, seems bizarre...
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Yesterday I decided to handle the 900cc expiring today 3 different ways to see how things would work out.
1) In choice 1 I realized the $23 loss and have opened 800 strike csp / diagonal (buy-write dynamic) spreads for next week expiration on the big drop. I haven't opened as many as I had on the $23 loss - I'll wait for Monday to evaluate opening more, so even if the new positions become worthless I'll still have a net loss over this expiration plus next week expiration. I'll need another week or 2 to offset the loss, absent a big rise ($950?) in the share price that will make the realized loss a particularly good choice.
2) In choice 2 I rolled for the better strike and +$10 credit. That gives me a $16 total credit in the position and that new call for next week is down to $11. I haven't decided yet but I'm thinking of taking the early and positive close (net positive over the week), and go looking for a new position next week on a rebound. If shares continue down then I'll miss out on earning more of that remaining $11.
3) In choice 3 I held the 900cc expiring today. I haven't closed yet but have a close order in at $0.10. I'm confident at this point that the cc will expire worthless and I prefer paying the $0.10 later in the trading day in lieu of actually expiring worthless. I don't anticipate opening a replacement position today (expecting a Monday rebound) so I'll squeeze out 1/2 of the remaining .20.
Took the early close on this one. I had a $40 position with a $16 accumulated credit, out for $10 in 1 day. So I've realized $6 over 2 weeks - the roll yesterday got me about the same outcome as the third choice (hold and see what happens today) due to the big move down.
Despite having $10 remaining in the position and being ~$45 OTM, I decided to take the early close so I'm position for a rebound in the share price on Monday. I might get a second position for next Friday, where my target is to close a position for each expiration; a second position would be an unexpected bonus.
I can't see the SP dropping much more next week. Took the extra put premiums on the drop to open -690/+640 BPS for next week.
I was also planning on letting my old Buy/Write with 810CC end this week, but with the drop, I was able to get $8 to roll the same strike to next week!
My Buy/write just keeps printing money
AND, I got $18 to roll my mom's 850CC Buy/write to next week!
I was also planning on letting my old Buy/Write with 810CC end this week, but with the drop, I was able to get $8 to roll the same strike to next week!
My Buy/write just keeps printing moneyAND, I got $18 to roll my mom's 850CC Buy/write to next week!
I can't see the SP dropping much more next week. Took the extra put premiums on the drop to open -690/+640 BPS for next week.
I was also planning on letting my old Buy/Write with 810CC end this week, but with the drop, I was able to get $8 to roll the same strike to next week!
AND, I got $18 to roll my mom's 850CC Buy/write to next week!
I am trying to see if we continue the bull trend channel in the short term or if the market is going for a reversal to the bear market. One day of pullback is probably just a bear trap
I hope soI hope Elon is not selling stock today because if so I can see a continued sell off next week. I still don't understand why Tweeter is so important to him but what do I know 
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QQQ and SPY held their 5-day SMA very well. Pullbacks are healthy and can serve as a catalyst for the next leg up.I am trying to see if we continue the bull trend channel in the short term or if the market is going for a reversal to the bear market. One day of pullback is probably just a bear trap
TSLA seems to be doing its usual option expiry day thing. Amazing how a stock that looked so strong for the first 4 days of the week gets pummeled in this manner. I know this was a probably a sell the news event or Hedgies were hoping for the split announcement to run it up more. No split news so SELL SELL SELL
I sold my puts a bit too early but not worried about them yet!
yeah, and this late run-up to over 900 has been so fast, that a pullback was expected. It's a volatile stock. We've had what, like 10 green days in a row?QQQ and SPY held their 5-day SMA very well. Pullbacks are healthy and can serve as a catalyst for the next leg up.
TSLA seems to be doing its usual option expiry day thing. Amazing how a stock that looked so strong for the first 4 days of the week gets pummeled in this manner. I know this was a probably a sell the news event or Hedgies were hoping for the split announcement to run it up more. No split news so SELL SELL SELL
I sold my puts a bit too early but not worried about them yet!
3:1 split on 25th August: tsla-ex991_6.htm
scubastevo80
Member
RH previously showed us today's expiry so I could go in and select the two legs of the spread, and then select next week's legs and roll it all in one trade. Now we can just "close" and have to separately open another trade for the following week.
Really annoyed at myself this week. I made 6 trades - five of them winners from 20-250%, and the TSLA 880/800 BPS that I closed at a loss. The loss ate up almost all of my gains. I should have just closed this morning when we started to dip. I really need to try harder to get more comfortable taking losses much earlier. I would probably have thousands more in my account if I didn't play the wait and lose more game.
Have a great weekend everyone... FSD 10.13 and more (split adjusted) shares are coming soon!
corduroy
Active Member
Conditions are so different than the last split. My guess is it will be a non-event.
(opens calculator and types in the numbers and then falls off the chair) : 2x the avg income of the last 16 weeks!
this week has been very good to me and i am very thankful to everyone , i read and like every post even if i forget to click on
few things i learned recently (from my notes):
this week has been very good to me and i am very thankful to everyone
, i read and like every post even if i forget to click onfew things i learned recently (from my notes):
- don't be ashamed/afraid of small gains and leaving money on the table; 4 quarters still add up to a dollar
- ignore noise (ie other thread's opinions that have no facts); focus on hard data and don't follow the crowd
- everyone on news/social media has an agenda or bias, trust in your own research
- plan your trade and trade your plan (this prevents emotional and spur-of-the-moment actions)
- have discipline (don't just trade left and right especially if they were unplanned the night before)
- have self-control especially when tempted; don't get caught up in the moment
- stick to the plan and don't abandon your strategy while thinking fast about something new
- the point is to reduce emotions, not remove emotions; we are not algo-bots
- let your stop loss or exit plan determine when to close a losing position; hoping for a reverse is not a strategy
- you can't control stock price up and down, but you can control your exit; there is nobody to blame for a large loss
- you don't need to time the lowest dip and highest peak, all you need is a piece of the move; stop maximizing gain
- you don't need to trade all the time, if there is no opportunity then rest on the sidelines
- think of risk-reward ratio; is risking $10k to gain $10 really worth it even at OTM, what if there is black swan tom?
- overtrading increases chance of losses, stop the addiction
- it's ok to relax on Mondays... sometimes, the best credits arrive on Wed/Thur
- don't do revenge trades (to make up for loss) if you didn't really think about the risk of the position's quick payback
- if lost money, there is no shame in walking away to try again another day
- if you don't want to own the stock, don't sell the put too aggressively (and then spend weeks fixing a problem)
- plan your trade's entry and exit; if there is no plan then it's gambling
- it's ok to earn even just a little here and there, stop trying to get rich quick
- it only takes one mistake to undo months of work
- options is not a salaried job, stop thinking you need to have a certain income every week (ie force a trade)
- there is no perfect strategy, all you can do is be consistent in following what works for you
- if you are not constantly looking at the stock price, then your process/system is working
- most problems are caused by sizing; reduce size and you have less problems
- focus more on why you are opening a position, not how to fix it once problem comes
- institutions are the ones making money, so observe/follow what they are doing
- you don't need to be good at everything, master what works for you and consistently do it
- being consistent doesn't mean profit is also consistent; it means you have discipline
- if you only care for a 2 DTE trade, why do you worry about next month's stock price?
- you can't control steep drops and hikes, so focus on what you can control: entry and exit
- most of all and most important, protect your capital
- the real goal is not to earn $$$ a week, it's to make sure positions have high probability of success
- if you want good income, then have high-probability setups
- ask yourself "how much can i lose?" instead of "how much can i make?"
- making money is the easiest part, preventing a large loss is why we plan ahead (entry/exit)
- control risk: it is not sexy and it is not popular because it means less income, but do it or you will lose everything
I was expecting a +6.63% SP move on this news release. Of course the exact opposite happens.
Problem:
-If EM is selling we probably have at least three more days.
-By the time he is done we might be in low 700s.
-Why the hell did I buy this dip aggressively when I knew this? No one cares about splits when the CEO is dumping a couple million shares a day.
Ask Yoona from her latest excellent post.
-If EM is selling we probably have at least three more days.
-By the time he is done we might be in low 700s.
-Why the hell did I buy this dip aggressively when I knew this? No one cares about splits when the CEO is dumping a couple million shares a day.
Ask Yoona from her latest excellent post.
If we really go in the $700's I am swapping shares for options starting in the low 800's. Right now I have zero long calls and zero cash
.Why does everyone suddenly think Elon is selling? TSLA ticker pretty much followed the shape of the Nasdaq, S&P, and the Dow today + typical Tesla "sell the news" beta.
P.S. - I was hoping when I sold Puts yesterday that this time would be different, but I never learn....
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