I have 300 x 580/680 PS for next Friday. Thinking of adding some safer 570/620s for a little more play money. I've been at this long enough to know that <700 next Friday is unlikely, but NOT out of the question thanks to Macros....
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Actually, I take that back. Looking at the BB, I don't see that we have ever gone from just below the top, to out the bottom in one week. 700 should be a safe bottom next week. Should...I have 300 x 580/680 PS for next Friday. Thinking of adding some safer 570/620s for a little more play money. I've been at this long enough to know that <700 next Friday is unlikely, but NOT out of the question thanks to Macros....
Actually, I take that back. Looking at the BB, I don't see that we have ever gone from just below the top, to out the bottom in one week. 700 should be a safe bottom next week. Should...
Anyone taken a look at the max pain chart for next week 10/08 yet?
Weird that max pain is listed at $725.... because there is a solid put wall at $720 of 55k puts but also a call wall at $700 of almost 32k calls....
Just weird IMO.
More likely the 14k of puts at $750.Probably the 23k calls at $800 skewing it upward.
Personally, if I can close out my positions on Friday, I don't intend to open anything till late Mon or early Tues. And then it will just be quick, I don't want to hold any calls or puts for the 10/7 shareholder meeting.
The CCS portion at 1000/1050 is paying only 0.05 per option. I know it is a free bet, but is it worth the trouble going for it? I guess depending on how many options could be beer money.Pretty sure the price on 10/8 will be 700-800, +/- 50. So I'm opening a 50/100/1000/1050 IC, limit fill @$4 premium.... hasn't filled yet.
I like to live dangerously, so I might tighten the spread to 1000/1010 to demonstrate my confidence that it will close under 1000 next Friday. I could lose hundreds (if not thousands) of cents if I’m wrong. wish me luck gentlemanThe CCS portion at 1000/1050 is paying only 0.05 per option. I know it is a free bet, but is it worth the trouble going for it? I guess depending on how many options could be beer money.
End of August 2020 the BB were more than 30% apart, and SP dropped about 30% in one week without coming out the bottom. Now the BB are less than 10% apart. Hopefully that keeps us safe (if using 700 as a Put play next week).
What is an IC? Thanks!!Pretty sure the price on 10/8 will be 700-800, +/- 50. So I'm opening a 50/100/1000/1050 IC, limit fill @$4 premium.... hasn't filled yet.
What is an IC? Thanks for all the great info!Pretty sure the price on 10/8 will be 700-800, +/- 50. So I'm opening a 50/100/1000/1050 IC, limit fill @$4 premium.... hasn't filled yet.
'The Wheel' Thread Glossary:What is an IC? Thanks!!
You forgot shitputs/shitcalls - please amend'The Wheel' Thread Glossary:
IC: Iron Condor
BPS: Bull Put Spread
BCS: Bear Call Spread
CC: Covered Call
LCC: Leap Covered Call
C+: Bought Call Option
C-: Sold Call Option
P+: Bought Put Option
P-: Sold Put Option
STO: Sold to Open
BTC: Buy to Close
LEAP: A long dated option, typically 12 months+
BB: Bollinger Bands
SP: Share Price (TSLA)
IV: Implied Volatility of an Option
OTM: An option that is Out of the Money (eg a Call above current SP)
ITM: An option that is In of the Money (eg a Call below current SP)
DITM/DOTM: Deep In or Out of the Money
OI: Open Interest (number of contracts at a strike on the options chain)
Call/Put Wall: A significant high point on the OI graph (Stock Option Max Pain)
The Wheel: An Options strategy where if a call is exercised you sell an aggressive Put that may get exercised.
And the opposite of these: "I dare you calls/puts"You forgot shitputs/shitcalls - please amend
800cc OI dropped slightly to 22.283 today.800cc 10/1 OI (open interes) update:
monday 9/27: 12.600 (+/-)
tuesday 9/28: 17.355 [+4.755]
wednesday 9/29: 22.520 [+5.165]
The call wall at $800 has therefore nearly doubled since Monday. Volume on these calls was around 120k (!) yesterday, so lots of trading going on. The deeper into the week without $800 being breached the higher the probability IMO of closing below $800 on Friday.
I'm still holding on. Will only think of rolling if we breach $800 on volume.
Before Jan 2024I'm loading up on LEAPs in retirement account. Went with 10x $750 Jan 2024 to start off the day.
Will be looking to load up more if anyone has some non-advice on when might be a good time.
Another question, if I buy a DITM calls and then sell CC off of that and get assigned, is there a way for me to choose which shares get taken away? Or does the broker have sole control over that?
Thanks in advance!
Go back about 3 months and read and take notes on @Lycanthrope and @adiggs posts in this thread.I'm loading up on LEAPs in retirement account. Went with 10x $750 Jan 2024 to start off the day.
Will be looking to load up more if anyone has some non-advice on when might be a good time.
It depends on your broker and account setup. I did some careful analysis about a month ago comparing various strategies. I HODL my shares and sell spreads (IC, BPS, BCS) against the excess margin liquidity backing in the account. This gives me the maximum premium return against allocated margin. And the excess margin accumulates most by keeping premiums in the account as cash. So for me the best approach has been to accumulate cash to maximise the account liquidity to then sell even more contracts to generate more cash. At some point (very soon) I top out the number of contracts I'm prepared to sell and then use the generated cash to accumulate by buying LEAP spreads and shares.Looking for some advice here from everyone.
I get that some people are using the wheel to act as an income replacement. I am not in that stage yet -- I am still in the growth stage of things (long term goal of TSLA to 2-2.5k, maybe 5 years?). With the weekly premiums that I am accumulating, I want to reinvest that back into TSLA because I think there are 2-3 more legs up before we level off for a while. I also really am reticent to touch any of the shares I have and lose them, so I am playing pretty conservative and not selling CC and focusing exclusively on selling puts right now. This is also a taxable account. What is the best approach to grow from your perspective?
Buy DOTM LEAPS (Jan 24 1500 calls)?
Buy DITM LEAPS (Jan24 600 calls)?
Buy shares?
Another question, if I buy a DITM calls and then sell CC off of that and get assigned, is there a way for me to choose which shares get taken away? Or does the broker have sole control over that?
Thanks in advance!