Wow - what an ending to this week - closing at 843 and up another $6 in after-hours!
Just catching up with all the posts from today - lots of new folks joining and plus we get @The Accountant joining in too! Yes, we definitely are playing in the big leagues now!
For those of you like @ammulder mentioning that this feels like buy the rumor sell the news, I have to disagree. To me this has the feel of October 2019 - just prior to the ER. At the time, folks on the main thread, with all the excellent analysis done by folks on the Near-Future Quarterly Projection thread, were predicting a massive beat - plus we had China Gigafactory close to completion...the expectation was that the stock was poised to take-off. I feel we are in a parallel situation now - MMM are underestimating TSLA, TMC folks are expecting a strong ER with a significant beat of expectations, and we are on the verge of 2 new Gigafactories starting production. We may still have plenty of red days, but in general FUD is having less impact. I just went back and looked through @Papafox's thread - $TSLA shot up almost 20% in after-hours after Q3 2019 ER. After that, it never came back down to those levels again.
So, I am not opening any BCS or CCs for a while from now, the premiums are not worth the risk. I am also staying a bit conservative on the BPS side - just being gun-shy after the pain with margin calls in Feb-Mar this year. My biggest worry for downside is the possibility of an FSD related accident - even if Tesla is not at fault, the FUD headlines will do some damage.
This week was not bad, although not as profitable for me as last week - still made about 30K, so no complaints here. I closed out most of my positions early - about 70% profit and opened positions for 10/22. Many of my orders for today did not go through, and I was busy at work and did not monitor enough to change the ask price. If there is a drop on Monday or a good IV jump, may open more.
Brokerage (Margin account): +p665/-p715 @$4.5 and +p675/-p725 @$5
IRA (Cash secured): +p680/-p730 @$5 and +p700/-p750 @$4.5
Roth IRA (Cash secured): +p700/-p750 @$4.5
My brokerage and IRA accounts are very heavy in $TSLA stock and Calls - these are all long term HODL so this week was excellent for my overall gains. The margin available in my brokerage is due to the TSLA stock in there - about 40% of the value, and I limit myself to 50% of available margin for selling options. In my IRA, I sold some of the LEAPS and stock to generate cash for selling options, but I am not planning to liquidate anything more. I prefer keeping a combination of both, long term stock and short term trading. My goals for selling options strategy are to learn to generate income from the available equity - while keeping majority of it for long term growth. I am still working full-time for reasons other than just getting a salary. I want to be comfortable with the trading strategies so in case I decide to retire, I will have means to generate alternate income.
Just catching up with all the posts from today - lots of new folks joining and plus we get @The Accountant joining in too! Yes, we definitely are playing in the big leagues now!
For those of you like @ammulder mentioning that this feels like buy the rumor sell the news, I have to disagree. To me this has the feel of October 2019 - just prior to the ER. At the time, folks on the main thread, with all the excellent analysis done by folks on the Near-Future Quarterly Projection thread, were predicting a massive beat - plus we had China Gigafactory close to completion...the expectation was that the stock was poised to take-off. I feel we are in a parallel situation now - MMM are underestimating TSLA, TMC folks are expecting a strong ER with a significant beat of expectations, and we are on the verge of 2 new Gigafactories starting production. We may still have plenty of red days, but in general FUD is having less impact. I just went back and looked through @Papafox's thread - $TSLA shot up almost 20% in after-hours after Q3 2019 ER. After that, it never came back down to those levels again.
So, I am not opening any BCS or CCs for a while from now, the premiums are not worth the risk. I am also staying a bit conservative on the BPS side - just being gun-shy after the pain with margin calls in Feb-Mar this year. My biggest worry for downside is the possibility of an FSD related accident - even if Tesla is not at fault, the FUD headlines will do some damage.
This week was not bad, although not as profitable for me as last week - still made about 30K, so no complaints here. I closed out most of my positions early - about 70% profit and opened positions for 10/22. Many of my orders for today did not go through, and I was busy at work and did not monitor enough to change the ask price. If there is a drop on Monday or a good IV jump, may open more.
Brokerage (Margin account): +p665/-p715 @$4.5 and +p675/-p725 @$5
IRA (Cash secured): +p680/-p730 @$5 and +p700/-p750 @$4.5
Roth IRA (Cash secured): +p700/-p750 @$4.5
My brokerage and IRA accounts are very heavy in $TSLA stock and Calls - these are all long term HODL so this week was excellent for my overall gains. The margin available in my brokerage is due to the TSLA stock in there - about 40% of the value, and I limit myself to 50% of available margin for selling options. In my IRA, I sold some of the LEAPS and stock to generate cash for selling options, but I am not planning to liquidate anything more. I prefer keeping a combination of both, long term stock and short term trading. My goals for selling options strategy are to learn to generate income from the available equity - while keeping majority of it for long term growth. I am still working full-time for reasons other than just getting a salary. I want to be comfortable with the trading strategies so in case I decide to retire, I will have means to generate alternate income.