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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
john tanglewoo
2012 Roadster Owner
Got out of these today at 10.00 for a quick 46% profit, I should probably just be patient and hold them, but so much uncertainty in price movement surrounding the split.
The 885 can be rolled to 9/16 890 for $11 per week ($44) today. The support breaking has me thinking a roll out now might be best rather than taking assignment today at 882 or so effective with credit. That could also put these DITM if post split we stall.
EDIT: Wait, what am I thinking? They can be rolled down to 8/26 850 for better than $6 ...
right side says they were part of a spread. Can you look up other options trades around that trade-time (±2 secs) with a corresponding amount?
maybe it was 1050/1200 bear call spread. Maybe it was a 900/1050 bull spread..
Just keeps dipping, found a little dry powder for few stock purchases @ SP 880 with a sell placed at 899.
corduroy
Active Member
STC some 8/26 -790/690 BPS and -800 CSP for $2.5 and $3.60. I hope the bleeding has stopped today, but it wouldn't surprise me if we take another leg down.
Yesterday before close due to anemic volume I thought it best to close my 19AUG2022 890 put....only took home 59.40% on 2 days work ($8.62->3.5), but it clearly saved me from being assigned today.
On the dip this morning, I opened a 26AUG2022 850 Put ($10)...Wasn't really intending on holding something over the weekend into next Weds, but maybe we'll finally see the macros / volume pick up?
On the dip this morning, I opened a 26AUG2022 850 Put ($10)...Wasn't really intending on holding something over the weekend into next Weds, but maybe we'll finally see the macros / volume pick up?
Closed out this week's -c900's and put a limit order for next... yes I know it's not the best moment to be selling calls, but what if Monday it's lower... who knows, I'll take what I can now, it's still good money...
Or at least it would be good money if $TSLA wasn't being held lower than the macro, very annoying... I'll wait and see
Or at least it would be good money if $TSLA wasn't being held lower than the macro, very annoying... I'll wait and see
I have a lot of buffer left of my margin, but Interactive Broker's software would not let me place an order to sell share-covered calls.
The error message claims it would violate margin requirements. I opened a support-ticket, which got closed by a representative repeating the BS claim that my order would increase my margin requirement beyond the max available. As far as I know selling OTM share covered calls should have no margin requirement at all. I can sell such calls on non-margin accounts.
Anybody else experienced similar troubles with IBKR software ?
It is one thing that they have buggy software that throws out baseless error message, but I hate their attitude in response to customer complaints on said bug.
The error message claims it would violate margin requirements. I opened a support-ticket, which got closed by a representative repeating the BS claim that my order would increase my margin requirement beyond the max available. As far as I know selling OTM share covered calls should have no margin requirement at all. I can sell such calls on non-margin accounts.
Anybody else experienced similar troubles with IBKR software ?
It is one thing that they have buggy software that throws out baseless error message, but I hate their attitude in response to customer complaints on said bug.
Are you sure it's a bug? I've found TD and Schwab to occasionally block an order, because there's another pending order (STO or roll) that I'd forgotten about. Did you check those?
I think the issue is that the shares are currently your collateral for your margin. If you sell CCs against them, the CCs are using the shares, leaving no/less collateral for your margin. (You can't use the same share value to cover two different positions.)
The only orders I had open were for closing some long positions, so those would not have margin requirement either.
This explanation makes sense. I have very little cash so my margin all comes from shares owned and I do have some put spreads which require margin. Removing the shares to cover the CC would reduce that base. Thanks for clearing this up. The message I got from IBKR did not make this connection, it was claiming my "Initial Margin" would go up.
That doesn't ring true to me - that would mean that if one covered all their shares with CCs, they would have zero margin available? My available margin doesn't change when I sell CCs.
Are these shares bought in the last couple days that haven't settled yet?
Edit: Actually, seems like a bug in IBs trading platform. Lots of Reddit threads on IB sometimes needing margin for CCs. This thread mentions trying to put the order in through TWS instead of the app:
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Same here. I was complaining about that since they migrated me from london to ireland post-brexit in the beginning of 2021.
In a small account they even liquidated spread-position that were fully covered.. complaining i need 1500 margin to cover a $1000 max-loss-position..
They suck at pairing up stuff and not calculating things correctly. I.e. they will par 5 long calls with 10 short calls hallucinating a margin-deficit (for a 3-sigma-move), whilst ignoring the 5 other long calls that would cover it completely.
I often have a net-delta-exposure to TSLA in the range of 500-1000. If i want to limit my downside, then going 50 shares short is no margin problem. going 500-1000 shares short is also no problem (basically removing all delta-exposure). BUT going short i.e. 300 in-between WITH LOWER POTENTIAL LOSSES blows up my margin by an order of magnitude..
I have TONS of these examples. Many can be fixed with "*sugar*-puts".. i.e. buying 1(!) 850$ OTM put for $3 (in total .. 0.03/0.04 bid/ask on the contract) will reduce my margin 90 minutes before close by $1600... because logic.
I get the "same" "protection" on my portfolio (according to their margin-logic) by buying 5x 750p for next week (for $130)..
Their calculations got really bad after the "meme-stocks" went through the roof.. the whole GME-Saga was companioned by margin-increase after margin-increase.
Currently the required margin is often equal to the max-loss.. then in other cases it is totally not.
But i have sadly no alternative (i did look already!).
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