Wiki Selling TSLA Options - Be the House

[EnzoXYZ]

awesome thread!!!

i posted my 'greatest strategy ever' and got corrected 4? 5? 6? 7? times

priceless lesson learned before i made a mistake... holding unwanted shares would have seriously gone against my "all cash" mindset, what a fail

THANKS GUYS

methinks that the 'NEWBIE Trader' sign up there will be staying for a while

Not going to correct you but give you my experience and in no way directed at you.

Jan-Feb ‘21 I was enjoying “risk free” I dare you CC on 400 margin shares. Life was great since those shares I wasn’t attached to and Call premium was amazing. On top of this I was doing margin secured puts. Tesla SP goes from mid 800s to high 500s. The losses on the 400 shares and naked puts turned into hundred of thousand quickly. I didn’t have enough margin to roll the puts so forced to sell 700 shares to cover everything. -$240K in two weeks by March 5. I’ll never forget.

What I learned the hard way:
No such thing as risk free.
Need to watch margin.
Option level is important. I had level zero didn’t understand spreads needed level 2.
Don’t t jump in the ocean when there is a pool you can practice.

 

[Bunky]

In light of premiums this week not quite being all that we have been fortunate to experience the last few weeks, are any of you exploring further out expirations/stocks other than TSLA? Or just being content with what our golden goose gives us?

 

[adiggs]

In light of premiums this week not quite being all that we have been fortunate to experience the last few weeks, are any of you exploring further out expirations/stocks other than TSLA? Or just being content with what our golden goose gives us?

The premiums aren't quite what I'd like, but also completely adequate for me. I'm not exploring elsewhere (other than TSLA) due to how much work that will entail. An important, and I think essential, component of this trading strategy for me is my knowledge of the underlying business - the strategy, the execution, the financials, the long term plan.

I don't trade random underlying that have met a technical criteria (such as IV in the top 50% of the last 1 year IV).

As long as the golden goose is giving generously, and somewhere around 24%/year is something I consider generous, then I'm happy. Everything above that - like say 2%/week instead of 2%/month is sort of wonderful.

 

[bonk3125]

The premiums aren't quite what I'd like, but also completely adequate for me. I'm not exploring elsewhere (other than TSLA) due to how much work that will entail. An important, and I think essential, component of this trading strategy for me is my knowledge of the underlying business - the strategy, the execution, the financials, the long term plan.

I don't trade random underlying that have met a technical criteria (such as IV in the top 50% of the last 1 year IV).

As long as the golden goose is giving generously, and somewhere around 24%/year is something I consider generous, then I'm happy. Everything above that - like say 2%/week instead of 2%/month is sort of wonderful.

I dabbled in options trading with other companies last year. I thought I was super talented until all of a sudden I was not. Made me realize I'm not an options trader; I'm a TSLA holder/trader. TSLA + cash. What else do you need?

 

[adiggs]

I dabbled in options trading with other companies last year. I thought I was super talented until all of a sudden I was not. Made me realize I'm not an options trader; I'm a TSLA holder/trader. TSLA + cash. What else do you need?

I've done a bit with more general options trading previously, and found it random and money losing I was bad at it.

I think it was and is primarily because I fundamentally have a buy and hold mentality. That doesn't generalize well to purchasing options. But it does seem to generalize well to selling options - I think because 'do nothing' is frequently the right choice with a sold option, and I'm really good at that from my buy'n'hold.

 

[buttershrimp]

I've done a bit with more general options trading previously, and found it random and money losing I was bad at it.

I think it was and is primarily because I fundamentally have a buy and hold mentality. That doesn't generalize well to purchasing options. But it does seem to generalize well to selling options - I think because 'do nothing' is frequently the right choice with a sold option, and I'm really good at that from my buy'n'hold.

Well said.

 

[Xepa777]

In light of premiums this week not quite being all that we have been fortunate to experience the last few weeks, are any of you exploring further out expirations/stocks other than TSLA? Or just being content with what our golden goose gives us?

MSTR - basically bitcoin

There’s any army of people doing daily research on bitcoin (even more so than tesla) and I’ve been following mstr for over half the year so I know it’s trading patterns well. And the premiums are insane. I’ve been selling covered calls and outs against margin for awhile. Been a great game

 

[Yoona]

In light of premiums this week not quite being all that we have been fortunate to experience the last few weeks, are any of you exploring further out expirations/stocks other than TSLA? Or just being content with what our golden goose gives us?

Not complaining at all but actually super very thankful and excitedly looking forward to each Monday's opening bell.

TSLA is the gift that keeps on giving even if prems collapsed. Just a weekly $1 credit is already nice 1.28% total portfolio weekly growth and i'm ok with it. I found that chasing after more prems (ie introducing needless risk) and 'pls just give me $1 more' is what gets me into trouble most of the time: they are adding avoidable drama and unnecessary loss.

Options trading is my fullltime dayjob for the next 30? years and the future is amazingly bright no matter what the prem is. Key is to be flexible coz there are many options strategies to try if one isn't working anymore.

 

[mickle]

In light of premiums this week not quite being all that we have been fortunate to experience the last few weeks, are any of you exploring further out expirations/stocks other than TSLA? Or just being content with what our golden goose gives us?

The goose already gave me a golden egg, I just need to wait about 1-2 years for it to hatch. Anything I can make easily with low risk between now and then will decide whether my yacht will be 55, 60 or 80ft, and I'm not really sure it matters. Just don't want to lose the egg.

 

[BornToFly]

I was just joking with my wife that I retired and now have another full time job with TSLA spreads. I'm constantly looking at options chains, TMC forums, Twitter Tesla news, TSLA SP history, learning about trading strategies, and crunching numbers. To be successful you have to know the stock REALLY well. I'm not trying this with anything else - I don't have time.... Hopefully doing this with TSLA will get easier as I continue to learn more. Being less greedy would help too with safer spreads - Gotta keep reminding myself that!

 

[⚡️ELECTROMAN⚡️]

The goose already gave me a golden egg, I just need to wait about 1-2 years for it to hatch. Anything I can make easily with low risk between now and then will decide whether my yacht will be 55, 60 or 80ft, and I'm not really sure it matters. Just don't want to lose the egg.

Wind and solar powered?

 

[Oil4AsphaultOnly]

Wind and solar powered?

I thought the kite-sail variant wasn't in production yet? So it's just solar + batteries for now, isn't it?

 

[Oil4AsphaultOnly]

The goose already gave me a golden egg, I just need to wait about 1-2 years for it to hatch. Anything I can make easily with low risk between now and then will decide whether my yacht will be 55, 60 or 80ft, and I'm not really sure it matters. Just don't want to lose the egg.

What, no 100-footer? It was just announced recently.

 

[mickle]

What, no 100-footer? It was just announced recently.

Darn them, hadn't heard of the new 100 footer until now, with a helipad even! Might have to take on a little more risk

 

[Tslynk67]

Are you adjusting for the appreciation we recently have had? 100 below 700 is further than below 900.

I haven’t been putting as much weight into the put and call walls lately. Especially around earnings and also Dave’s (or was it Rob) interview with the MM dude also reduced my trust in max pain theory a bit. I still take it into consideration like all other TA.

Sure I re-evaluate the strikes every week, but also take into account that after a sold run, we could get a pull-back, so I may stay a little cautious until I feel we've consolidated at a new price point

 

[traxila]

If thought this many times privately, why else would someone embarrass themselves this way continually?

Cause they are getting paid. Whatever the profitable actions of their sponsors are exactly (many possibilities. My fav is the annual budget of big oil to slow down the transition. Gotta put the money somewhere!) their mission is to drive the TSLA SP down as much as possible by any means necessary. They are paid actors.

But we all know this.

 

[jeewee3000]

Hi all, I just joined this thread and read most of it but not all. What is this spreadsheet? Can someone share?

He is referring to his personal spreadsheet where he tracks gains and losses per week of options trading.

 

[InTheShadows]

I've done a bit with more general options trading previously, and found it random and money losing I was bad at it.

I think it was and is primarily because I fundamentally have a buy and hold mentality. That doesn't generalize well to purchasing options. But it does seem to generalize well to selling options - I think because 'do nothing' is frequently the right choice with a sold option, and I'm really good at that from my buy'n'hold.

Do you think you could take what we have learned here and use it with another mega cap company like aapl or msft, or spy or the q’s?

 

[Criscmt]

I was just joking with my wife that I retired and now have another full time job with TSLA spreads. I'm constantly looking at options chains, TMC forums, Twitter Tesla news, TSLA SP history, learning about trading strategies, and crunching numbers. To be successful you have to know the stock REALLY well. I'm not trying this with anything else - I don't have time.... Hopefully doing this with TSLA will get easier as I continue to learn more. Being less greedy would help too with safer spreads - Gotta keep reminding myself that!

I am sure, a lot of us on this thread can very well relate to what you are saying/doing . It takes away a lot of time which likely otherwise would’ve gone to family. Hoping it continues to get relatively more easy, as we individually, and collectively learn more on the subject. Cheers!

 

[Yoona]

anyone has a 10/29 -c guess? my -p will hide below the 805 maxpain.

last friday's volume: