Wiki Selling TSLA Options - Be the House

[alterac000]

sto 50% 8/27 cc710@9
sto 50% 8/27 [email protected]

Have 700/740 call vertical from last week's 690/730 roll which I'll close or roll later this week. Same with 680/640 bps.

 

[InTheShadows]

That’s an impressive MMD

 

[UltradoomY]

Thoughts and strategy for the week -
TSLA rises on open and throughout the day today and maybe tomorrow - raising Max Pain to around $700.
Fed minutes come out Friday - so even with a rise above MM's will have an opportunity to crush TSLA on Friday to get what they want.

My not advice -
Leg into an IC today - on the call side selling $730/$780 call spread to match with my BPS sold Friday of $650/$600
Possible close out of the BPS depending on how much profit is there today or tomorrow - will close over 85%
Wait for down day Wednesday or Thursday to leg back into the IC with a resold BPS of the same strikes and close out the BCS side on the down day for 85% profit.

So closed out my BPS from last week ($650/$600) for just over 85% - yay
Now looking to hit my preferred premium of $7 each on $730/$780 BCS sometime today.
Cheers!

 

[juanmedina]

I closed my BPS and naked puts as well. I opened a few covered calls mostly 750s.

 

[adiggs]

Closed out my 8/27 expiration put spreads at around 5/6th profit this morning. The ~$30 rise this morning was too good not to take advantage of. The 9/3 put spreads haven't moved enough yet and I've decided to let them run. I should probably also take these off the table but I'm looking for another up day tomorrow to put these to bed.

The overall profit on these positions was merely good as these were rolls out of poor positions last week.

I sort of expect another up day tomorrow (but closed out the put spreads in case I'm wrong).


Using the "up day - sell calls" pattern, I've opened 725 strike cc's for this Friday (for $5). Around 1/2 of the cc slots available - my thinking is that I'll open more tomorrow when the shares are up again. And if they aren't up again tomorrow then I'll at least be earning on 1/2 as man cc slots as I'd like to be in.

I end up in a nicely mixed position - some put credit spreads in case the shares go up and some cc in case the shares go down. On both sides I have the opportunity to open additional positions - probably waiting for tomorrow to see which I'll be adding on.


My learning of the last week on these put spreads is that I may move out to $150 or $200 put spreads. I want these to behave like naked puts and with the realization that effective rolls are at the halfway point or better ITM, then a $200 spread size will give me a $100 window to maintain the positions well. One reason for the larger spread size is that I also see a straightforward approach into a higher delta for positioning these spreads.

Something like a 490/690 for a 5.20 - 0.07 or 5.13 premium (.25 delta for the short put). The 540/690 is 5.20 - .20 or a 5.00 premium and the ability to sell ~33% more. The difference in the price of insurance at $150 and $200 spread size is nearly the same (negligible) and both positions will behave almost exactly like naked puts probably down to around $650 share price.

 

[dl003]

Like most of you (I imagine ), I missed the top selling 735c for this Friday. It's all good though.
I cut my -725p a bit too early this morning. I thought TSLA was gonna get rejected hard for the 3rd or 4th time at 696 so I cut it right there, thinking I could re-open at 690 but alas she acted like the lady she was and started running away from me. I'll wait for 700.

 

[Oil4AsphaultOnly]

on Fri, STO 8/27 740c
today, despite SP having gone up $30, those short call options are still GREEN!

closed the short leg of my 10x 630p/520p spread (I think TDA messed up, because I've only got $45k cash, but there's no margin balance?!?! Maybe the TSLA shares are factored in too?) for an 88% profit. Rolled the long put leg into next week in preparation for reselling the short leg later in the week when the market makers try to bring the stock price back down to near max pain. As long as TDA continues to get their margin calculations wrong, then I'll continue keeping a 100 point spread - feels much safer.

 

[vwman111]

on Fri, STO 8/27 740c
today, despite SP having gone up $30, those short call options are still GREEN!

closed the short leg of my 10x 630p/520p spread (I think TDA messed up, because I've only got $45k cash, but there's no margin balance?!?! Maybe the TSLA shares are factored in too?) for an 88% profit. Rolled the long put leg into next week in preparation for reselling the short leg later in the week when the market makers try to bring the stock price back down to near max pain. As long as TDA continues to get their margin calculations wrong, then I'll continue keeping a 100 point spread - feels much safer.

We had great IV on Friday, higher than we have seen in long time excluding the usual earnings bump. IV is back to normal this week.

 

[bballshinobi]

IV is so low I feel like the reward almost isn't worth the risk

 

[UltradoomY]

IV is so low I feel like the reward almost isn't worth the risk

You should consider buying calls or puts then at such a low IV - I did that and was quite successful earlier this year.

 

[stealthyc]

Today has been very pleasant I must admit. My stress about my BPS on a scale of 1-10 has dropped from a peak of about a 4 to a 1. I think it has been a very good experiment, as I've gotten to understand firsthand the stresses and management involved and how it differs from selling naked puts so now I can better calibrate my positions going forward to my preferred risk levels. I am happy that I did an early roll last week, it helped give me time to consider things. For now I will continue to ride this week out, though I did sell a few 750c in my IRA.

 

[winfield100]

just curious since i only lurk here and only hodl.
how are folks poised and positioned for a possible “melt up”

 

[bballshinobi]

You should consider buying calls or puts then at such a low IV - I did that and was quite successful earlier this year.

Yea, I've been adding to my LEAPs! Just surprising to see the IV so low. I guess most of the Wall Street Bets people are getting tired of getting burned lol

 

[InTheShadows]

just curious since i only lurk here and only hodl.
how are folks poised and positioned for a possible “melt up”

That’s where the credit put spreads come in.

Also deep ITM leap calls that you sell short term calls against and roll them up if the stock runs away with them.

If we do start rallying, will have to watch to see if we start getting daily gap ups like we did last fall. I made a lot buying a few calls at market close and selling at open last fall when the gap ups were happening almost every day. I’ll be watching for that patter again because if it comes back I will not be selling any calls.

 

[UltradoomY]

just curious since i only lurk here and only hodl.
how are folks poised and positioned for a possible “melt up”

Howdy fellow Floridian!
I normally just go ahead and speak for everyone here anyway, so....

Most posters here from my observation (myself included) own a mix of shares and long dated leap calls.
This allows the selling of covered calls, leap covered calls and spreads against them to pay for the long dated calls or for other purposes.

Rolling the sold option is pretty easy once you do it a couple of times, so it is not too difficult to keep your hand on the pulse of where TSLA is going in the very short term.
Long term we all know where it is going so, positioning and making additional money along the way is why we are all here.
Feel free to join us more, and see the thought process.

 

[InTheShadows]

Yea, I've been adding to my LEAPs! Just surprising to see the IV so low. I guess most of the Wall Street Bets people are getting tired of getting burned lol

Or they have run out of capital.

 

[LN1_Casey]

Closed my call I had for today for $.04, and will probably sell another close to the money one next Monday. I expect the weekend for the AI day to stew and settle and pop the SP on opening.

Could be wrong but hey. Can’t hurt trying.

Guessed right, and woke up to the SP +$28 this morning. Quickly sold a 720c for this week for $7 when the SP was about 709. There are three walls of calls before that will come into play (700, 710, and 720 itself), so I feel fairly confident on closing it later this week for pennies.

 

[dl003]

just curious since i only lurk here and only hodl.
how are folks poised and positioned for a possible “melt up”

The current macro environment plays a big part in my decisions to sell and close short calls/puts. Right now the market is really hot. It is almost impossible for QQQ to go up everyday like today without pulling back big time every now and then. When that happens, it will pull TSLA down with it. Our goal is to hang on till then because it will happen. It's easy to get carried away on days like this, thinking this is the new normal but tomorrow the market can do a complete 360 like it has the last year and half. As option sellers, we bet on reversal to the mean and now that TSLA is a mega cap company I think the odd is more in our favor. The trendline in effect since March 2020 has acted as the destination for every FUD attack and right now it's still about $50 below where we are today. You can bet that the manipulators and their MSM cronies are not quitting yet.

 

[adiggs]

on Fri, STO 8/27 740c
today, despite SP having gone up $30, those short call options are still GREEN!

closed the short leg of my 10x 630p/520p spread (I think TDA messed up, because I've only got $45k cash, but there's no margin balance?!?! Maybe the TSLA shares are factored in too?) for an 88% profit. Rolled the long put leg into next week in preparation for reselling the short leg later in the week when the market makers try to bring the stock price back down to near max pain. As long as TDA continues to get their margin calculations wrong, then I'll continue keeping a 100 point spread - feels much safer.

What is the financial advantage to rolling the long leg to next week as insurance then? Thinking this through the best I come up with is that you can open the new long put position at the lowest possible price by opening it now (assumes that you'll be able to sell a new short put next week at a more desirable price point than is available right now. Is that it? Just trying to understand - if I'm in the right ballpark that sounds interesting

 

[JustMe]

Just popping in to say that max pain remains unchanged at $680, and today’s big move was carried through on relatively low volume ~ 20 million shares.

I suppose market makers will have their way again this week and suppress the stock price unless volume picks up a lot.

I’m telling myself these things after selling $705 8/27 CCs this morning.

My timing is peccable