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Wiki Selling TSLA Options - Be the House

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I read the first 15 pages of this thread for the last hour. Very interesting read.


It's basically @adiggs and @Lycanthrope sharing strategies whilst others try and dip their toes in the same pool.🙃 Thanks for your contributions, everyone. This thread is hugely educational.
Difference is that @adiggs is very methodical, reasoned and logical in what he does, I'm just winging it 😅
 
It's my first week on the wheel!

Your post is well timed.... right as Biden dropped his cap gains comments. This is my first week on the wheel, some safe covered calls at 810 for about 1000 bucks profit, and yesterday, placed DITM put (4x750cp placed when stock was at 730 SP). I'm fine buying at whatever, but was going to be super stoked if my first week on the wheel started off with $11,000 gain. Will see how much this puppy bottoms out.

Lots of open puts at $700 tomorrow (25k?) - so assume we will end round max-pain $720 - 701.

Well, I bet on it.. as I re-sold 5x $700 naked puts for tomorrows expiry. ;-) $1500 is good money, (even though it ties up close to 100k in margin, its just for 1 day)- and I have a really hard time even imagine we close below $700 tomorrow.

Edit: I also rolled some naked puts (exp. 4/30 and 5/14) up from $700 to $750, for an extra $15k premium, as the $700 was at 75% profit. For these to end well, I really need an ER beat. ;-)
 
Bit pedantic, and probably bit eye roll inducing from the regulars here, selling options as described in this thread and in general (via The Wheel and other strategies):

--Is trading, not investing. Short term, not long term. It may sound like semantics but it is (at least IMHO) really important to mentally separate the two.
--Is far from pinned to the right side of the shitty<-->amazing spectrum. It is generally an approach that has modest returns (that are capped) for high risk (theoretically huge/unlimited risk, but practically closer to just "high") and pretty heavy trader involvement (lots of rolling, lots of fingernail biting, etc.).
I'm only in it for the fingernail biting...
 
Did you buy to close your 755 CCs?
Nah, I only close calls if I think they're going to finish ITM - very small chance of that now, IMO

So I bought 11x $TSLA @ $720 during the dip yesterday - as is my strategy

If we do get some magical reversal today then I can resell them to release funds to initiate a "heavy" roll (meaning rebutting and reselling bit-by-bit)
 
I'm a tad greedy, but not that greedy. I'll be happy to close out the $755 calls for a penny by the afternoon.

That's even greedier than me :)

I had some reasonably far OTM puts expiring today that I closed yesterday for $0.30 (in the morning, before the largish drop). Made me a lot more comfortable going into today where I was semi-expecting to wake up to another move down to start the day. I figure anytime I can close a 2-3% of share price option sale at an 85-95% gain, and especially under $0.65 (Fidelity threshold for 0 cost trade BTC commission) is a good time to act.
 
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Is anyone surprised with how low is the IV with earnings coming on Monday?

I think its an indication that, as discussed upthread, IV since ~early 2020 has been mad high and we're starting to return to the "normal"/pre-covid IV range.

Good news is that thesis means we're also in a decreasing volatility environment, which is of course good for selling options. Bad news, again, is that it means as time moves on one will continue to collects less premium from selling that volatility.
 
Because it looks like the MMs want this to end in the 720-730 range, I got brave and rolled my calls down from 755 to 735 a few minutes ago for some nice pocket change.

NOT ADVICE, given there is a much higher chance that these calls may execute. Needless to say I'm glued to the ticker right now.

EDIT - I have buy orders in for 0.03 on all the calls to close them out. I don't want them to sit around after market closes, and if it doesn't look like we will get that low by 10min to close, I will up that price to ensure they are closed out.
 
Because it looks like the MMs want this to end in the 720-730 range, I got brave and rolled my calls down from 755 to 735 a few minutes ago for some nice pocket change.

NOT ADVICE, given there is a much higher chance that these calls may execute. Needless to say I'm glued to the ticker right now.

EDIT - I have buy orders in for 0.03 on all the calls to close them out. I don't want them to sit around after market closes, and if it doesn't look like we will get that low by 10min to close, I will up that price to ensure they are closed out.
Looks like there are big orders in the last few minutes, watch out. I am not betting on it closing above $735, but good to keep an eye on the orders.
 
Considering selling 04/30 860C in IRA account. Thoughts?

I want to see how Monday after hours and Tuesday AM look before I sell calls. This spring seems wound pretty tight, and if you sell the same call on the upswing of something like that it would be worth multiples of what it is worth now.

Not advice.
 
Considering selling 04/30 860C in IRA account. Thoughts?

I bought 4/30 $840 calls. They cost $2 - I felt I got a great deal.. so... selling $860 sound like a bad deal. ;-) If you got $10-20 - sure, that might be worth the risk.

Why on earth would you consider this now? Only if you plan to sell you shares next week at $860.

A stellar ER - and MM might have to let the SP slip and $900+ wont be an extreme surprise imho.
 
I want to see how Monday after hours and Tuesday AM look before I sell calls. This spring seems wound pretty tight, and if you sell the same call on the upswing of something like that it would be worth multiples of what it is worth now.

Not advice.
This is the same reason I BTC my $695 puts today, instead of rolling them to next week. Even though I think that the earnings will surprise to the upside, I'm not willing to take a chance for $20/contract (when I looked earlier). If there is an earnings miss, I will sell more puts on Tuesday.
 
I want to see how Monday after hours and Tuesday AM look before I sell calls. This spring seems wound pretty tight, and if you sell the same call on the upswing of something like that it would be worth multiples of what it is worth now.

Not advice.
I am worried about everyone's expectation being positive, green, for both Monday morning, and post ER.
Considering hedging by selling a fraction of the total calls I usually sell.
 
I bought 4/30 $840 calls. They cost $2 - I felt I got a great deal.. so... selling $860 sound like a bad deal. ;-) If you got $10-20 - sure, that might be worth the risk.

Why on earth would you consider this now? Only if you plan to sell you shares next week at $860.

A stellar ER - and MM might have to let the SP slip and $900+ wont be an extreme surprise imho.
It's the positive expectation from almost everyone on price action, both Monday morning and post ER, that's concerning me. Would like to hedge by selling a fraction of calls today. And it's IRA account.
 
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