Sadly if you do, it would guarantee you have enough time to earn the cost of the car before it’s delivered — and not because of how quickly you can make money trading options. (New orders estimated to deliver in May-June!!)
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Sadly if you do, it would guarantee you have enough time to earn the cost of the car before it’s delivered — and not because of how quickly you can make money trading options. (New orders estimated to deliver in May-June!!)
Heh not too sad. Maybe I can get both!
When do you guys think the IV will start to go up with earning happening next week on Wednesday? I am try to decide if I should close my BPS from last week today and open more midweek for this Friday.
edit: I end up closing most of my BPS at 80-90% profit.
edit: I end up closing most of my BPS at 80-90% profit.
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My 10/15 BPS 695/595 closed shortly after opening with the GTC 75% profit order I put in late last week.
Not sure if I’ll be able to open another position for 10/15 - travelling this week in Korea and time zones are a b*tch.
Not sure if I’ll be able to open another position for 10/15 - travelling this week in Korea and time zones are a b*tch.
I was wondering if Berlin and FSD were going to cause a bump this morning. Value for selling BPS for this week really dropped, so I just sold 700/650s for next Friday after the ER. I'm definitely trying to play it safe for 10/22 after seeing some really nasty drops after really good earnings reports in the past.
mickificki
Member
Nicely done. Closed my 4 680/580 BPS, and my 2 710 strike sold puts for slightly over 80%. Hopefully can get back in later today or tomorrow for another round this week.
Yikes, where's the morning drop? I also closed some put spreads on the jump this morning and would like a good spot to get back in... by which I mean "for the love of *** at least drop back under $800"! 
Right now I think the FSD Beta is definitely something to watch out for as a negative surprise. I have it as of this morning and based on my first drive I would not be too surprised if we hear about an accident soon with someone using it. It's both incredibly impressive and wildly not ready for public use in my opinion. I hope they roll it out extremely slowly.
I was wondering: have any of you been setting up BPS and BCS on other stocks than TSLA? I've so far not ventured to other stocks because TSLA has some of the best option premiums, although IV has gradually been dropping over the past nine months and there must be stocks out there with better premiums. I have a lot of faith in TSLA and wouldn't want to dabble with NIO, BYND or other young stocks because I consider them too risky. But TSLA is not immune to a possible black swan either and putting all my eggs in one basket might not be the best risk management.
mickificki
Member
Earlier this year (August I believe), a lurker (@KTC Lurker to be exact) posted that they'd been doing trades in shopify (SHOP) and had been doing really well. They were very bullish on SHOP, just like TSLA.
edit: Wiki - Selling TSLA Options - Be the House
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I'm putting some faith in the MM to keep the price down this week before letting it run up next week. Adding to the 300 x 735/760BPS opened on Friday.
STO 400x BCS split between 820/850 830/860 & 835/860 @ $3.35, $2 & $1.35 also a few $745CC @ $1.35
Now waiting to see if there's a delayed MMD to sell a couple more BPS or IC.
STO 400x BCS split between 820/850 830/860 & 835/860 @ $3.35, $2 & $1.35 also a few $745CC @ $1.35
Now waiting to see if there's a delayed MMD to sell a couple more BPS or IC.
dc_h
Active Member
After opening my positions early last week, I have again rolled about 40% of my positions early this week. I had 75 to 90% profit on my 650-600 and 705-655 bps and rolled to 650-600 10-22 and 705-645 10/22 bps. I extended the spread on the 705, which has a little more risk. I think I'm in a very low risk spread and leaving money on the table, but would prefer to in that 99 out of 100 spreads, versus a 9 out of 10 payout. I think earnings will be blowout, so think moving up to 750-700 spreads later in the week, may be in the cards. I feel obliged to do something if I log onto the account, so checking out for the rest of the day.
I'd expect a fight for 800 today and maybe all the way to earnings and see that as a new base after earnings. I seem to have one of the more conservative approaches in the thread. Going into earnings has some IV advantages, so it seems like a good opportunity to lock in early profits, knowing an earnings miss is very unlikely. The downside, as I see it, is leaving myself exposed to macro issues for 2 weeks, instead of the one week time spans I have used in the past.
I'd expect a fight for 800 today and maybe all the way to earnings and see that as a new base after earnings. I seem to have one of the more conservative approaches in the thread. Going into earnings has some IV advantages, so it seems like a good opportunity to lock in early profits, knowing an earnings miss is very unlikely. The downside, as I see it, is leaving myself exposed to macro issues for 2 weeks, instead of the one week time spans I have used in the past.
Knightshade
Well-Known Member
Yup... I closed my Friday-opened BPSes (635/735) this morning when it got over 800 for "only" bout 70% profit, figured that was good enough versus risk of some new FSD tester doing something dumb immediately after release.
Call premiums continue to be awful, so might consider opening new BPSes on a pullback but will see how it goes
Opened 2 small 101521 BCCS (bull call credit spreads) as "educational opportunities":
- 1 x -c850/+c890
- 1 x -c820/+c830
- net credit of $0.2k (ha!)
Isn't the correct terminology BEAR Call Credit Spread?
Anyone subscribe to any of the Option monitoring sites to see what other big traders may be doing? Sites like cheddarflow.com. Wondering if it may be worth a subscription?
KTC Lurker
Member
Good memory! I did do quite well on SHOP, until I didn't. There are some lessons learned as I had some large, and relatively safe *at the time* BPS open for SHOP when it dropped ~150 points over 4 days a couple of weeks back.
Things to keep in mind when trading outside of TSLA:
- Volume is your friend. A low volume stock, compared to TSLA, makes rolling and closing positions much harder. My EOW SHOP positions usually go to expiry because the OTM volume is so low I can't find a buyer. Volume also allows for more support, making manipulation harder.
- Momentum can also mean increased risk. SHOP had not dropped below 1400 in 3 months when I placed my -1390/+1320 BPS and the share price was currently ~1450. It had seen highs in the mid 1600's recently and had a very bullish Q2 ER. BUT, because it had only really climbed for 6-8 months the support levels were so much lower than the current stock price that a massive pull back on the Evergrande news exacerbated an existing pull back.
- Without a community like we have here, when the stock turns against you it can be a lonely slog to look for data and insights to plan your path to fix the position. The lessons learned here helped me get through it, but the discussion that TMC brings and the insight it collects are not matched with other stocks and make TSLA more predictable than any other stock I've found. This is one of the largest reasons why I will be taking one of the suggested tax strategies from the advisory company I hired and start a non-profit in 2022. That non-profit will focus it's investment on building communities like this one for the other stocks I feel passionately about the future of (SHOP & PLTR, to start).
I was moving my account from a personal to a business account last week, so I didn't do as much trading. Also, I'm trying to keep it to 2 days a week, as I tend to do better when I don't constantly adjust things, and I'm still trying to work .
As I mentioned a couple of weeks ago, I decided to stop selling calls for a while and focus more on puts. That's been reasonably successful, but I'm making in the 20-25k range instead of the 40s as I had been. So I'm moving slowly back into calls, although I probably will be cautious this week. My general strategy for mitigating risk is the inverse of most posters here; I prefer to have some of my trades as high gain with high likelihood of loss (but a small loss) over high likelihood of win, but utter ruin in the case of a black swan. I still have 25% of my account or so (at least) in those sorts of trades, but I actually feel better with an ATM call spread like this one:
STO: 10/15 800c/810c @ $4.37
Than the other spread I opened:
STO: 10/15 815c/835c @ $3.86
The former has a risk/reward that is close to 1:1. I'll probably have to manage it, and I expect to close it early if given the chance, maybe at 40%. But if it wins, that's about 10% of my goal of the week on relatively low risk.
The latter has a risk/reward of 1:4 or so. So I make $1 for every $4 I might lose. This has a much higher chance of being just fine and no management. However, if it goes away from me, it will ruin half of my week's efforts while still only getting me 10% of the way to where I want to be.
So I'm trying to ladder my trades a bit like this:
50% of premium from "safe" black swan event trades (eg, 730/710 BPS for this week)
25% of premium from more manageable, but riskier trades (eg, 750/700 BPS for this week)
(Combined this is about 25% of my account value, so a total wipe out with zero management is only going to hit me for 22% or so)
25% of premium from riskier, but low capped loss trades (eg, the ITM BPS I sold last week: +780/-800 @ $10ish. I closed this for about 33% gain this morning although I do give over 800 a better than even chance as our end of week. I'm concerned about this being a monthly options expiration, so decided to take my gains early).
Also, it took HOURS this weekend to catch up on all of the posts! I'm iffy about moving to a private forum, but am willing to make that move so long as I'm invited. I'll be good, I promise!
. As I mentioned a couple of weeks ago, I decided to stop selling calls for a while and focus more on puts. That's been reasonably successful, but I'm making in the 20-25k range instead of the 40s as I had been. So I'm moving slowly back into calls, although I probably will be cautious this week. My general strategy for mitigating risk is the inverse of most posters here; I prefer to have some of my trades as high gain with high likelihood of loss (but a small loss) over high likelihood of win, but utter ruin in the case of a black swan. I still have 25% of my account or so (at least) in those sorts of trades, but I actually feel better with an ATM call spread like this one:
STO: 10/15 800c/810c @ $4.37
Than the other spread I opened:
STO: 10/15 815c/835c @ $3.86
The former has a risk/reward that is close to 1:1. I'll probably have to manage it, and I expect to close it early if given the chance, maybe at 40%. But if it wins, that's about 10% of my goal of the week on relatively low risk.
The latter has a risk/reward of 1:4 or so. So I make $1 for every $4 I might lose. This has a much higher chance of being just fine and no management. However, if it goes away from me, it will ruin half of my week's efforts while still only getting me 10% of the way to where I want to be.
So I'm trying to ladder my trades a bit like this:
50% of premium from "safe" black swan event trades (eg, 730/710 BPS for this week)
25% of premium from more manageable, but riskier trades (eg, 750/700 BPS for this week)
(Combined this is about 25% of my account value, so a total wipe out with zero management is only going to hit me for 22% or so)
25% of premium from riskier, but low capped loss trades (eg, the ITM BPS I sold last week: +780/-800 @ $10ish. I closed this for about 33% gain this morning although I do give over 800 a better than even chance as our end of week. I'm concerned about this being a monthly options expiration, so decided to take my gains early).
Also, it took HOURS this weekend to catch up on all of the posts! I'm iffy about moving to a private forum, but am willing to make that move so long as I'm invited
. I'll be good, I promise!
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