Wiki Selling TSLA Options - Be the House

[UnknownSoldier]

Does anyone feel safe selling puts over 900 yet? I’m looking at 895’s for next week.

I'm trading BPS in the 800's, and I'm also not going further out than a week. TSLA retracements can be sudden and sharp.

 

[juanmedina]

Gamma squeeze for Friday? $1087 already . I still have my spreads and 10x 1090cc for tomorrow hoping they expire worthless and 1070cc and 1060cc for next week I was hopping to roll them tomorrow if they are OTM to 11/12. Are you guys planning on selling your shares in your retirement accounts? Maybe sell some CC Leaps as protection? What goes up must come down, right? We are up 18.5% for the week. We are going to be at the 1.2T market cap in no time. This reminds me of the AMC short squeeze were it would gap huge after hours and drop in the open market.

 

[MindOverMatcha]

Gamma squeeze for Friday? $1087 already . I still have my spreads and 10x 1090cc for tomorrow hoping they expire worthless and 1070cc and 1060cc for next week I was hopping to roll them tomorrow if they are OTM to 11/12. Are you guys planning on selling your shares in your retirement accounts? Maybe sell some CC Leaps as protection? What goes up must come down, right? We are up 18.5% for the week. We are going to be at the 1.2T market cap in no time. This reminds me of the AMC short squeeze were it would gap huge after hours and drop in the open market.

I don't have any advice, as I'm just sitting tight holding my shares. I feel the itch to sell some BPS but will wait. I've gotten lucky sitting on my hands this week and will keep doing what's working until it doesn't.
Almost sold a CC expiring tmrw and am glad I didn't due to after-hours. What has helped occupy my mind a bit is reading some quotes from one of the original traders, Jesse Lauriston Livermore (1877-1940). A man of many wins, losses, contradictions, and more. A movie on him would be a great watch. Both sides to the same coin, and for every one truth, there's an opposite and equal truth in the market.

It never was my thinking that made the big money for me. It always was my sitting.
Jesse Lauriston Livermore

"Never try to sell at the top. It isn't wise. Sell after a reaction if there is no rally."

Statement: "No one ever went broke by taking a profit."
Contradicton (Regret?): "They say you never grow poor taking profits. No, you don't. But neither do you grow rich taking a four-point profit in a bull market. Where I should have made twenty thousand dollars I made two thousand. That was what conservatism did for me."

One of my favorite that's helped me wait, accept missing out on premiums, and value the insurance time gives that a trade will be correct:
"Don't take action with a trade until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don't be an impatient trader."

"Never buy at the bottom, and always sell too soon."

"It isn't as important to buy as cheap as possible as it is to buy at the right time."

"The stock market is never obvious. It is designed to fool most of the people, most of the time."

 

[UnknownSoldier]

I keep waiting to just buy calls because I know the moment I finally capitulate and buy calls, they are going to dump it.

Maybe I'll just ragesell more BPS instead. We'll see.

 

[corduroy]

Infrastructure (EV tax credit) vote delayed until next week. This could mean we cool off tomorrow?

 

[AquaY]

Infrastructure (EV tax credit) vote delayed until next week. This could mean we cool off tomorrow?

Perhaps but Tesla doesn’t need the tax credit and some might argue that the infrastructure bill is inflationary and therefore harmful.
it’s certainly not a layup.
more important than the EV subsidy would be the billions paid to Tesla to expand their super charger network

 

[PastorDave]

Wow! That's bold but I understand why you feel those are still somewhat "safe"/ doable. I feel like there's still more to climb for next week. What spread width are you using? Are you selling and buying over a few days?

I've been using 20 wide for the safer ones (it looked like we would end the week between 1030 and 1050 to me earlier in the week) and 100 or 200 for the ATM plays. My plan was to roll them into next week if needed, as I expected us to go up from here sooner rather than later. I think we're going through a fundamental rerating of the stock, mostly driven by institutional buying. If that's right, we shouldn't go too far down from these levels. Certainly looks like every tiny dip is getting bought up. Anyway, I think the gamma squeeze from weekly options theory is hogwash; those absolutely happen, but this isn't one based on the OI, which for the week is not anywhere close to high enough to cause this kind of price action. If positions aren't held overnight, then why should the hedge be held?

Also, this has been my most successful week of trading - ever. I'm on track to realize nearly 200k in gains from options alone (not including appreciation of long calls). Condolences to those managing short call positions .

Edit: I forgot to mention that I've been holding for an average of 2 days maybe? This week has seen quite a few unintentional 60% day trades too. I'm opening positions thinking of the end of the week, but in this environment I'm going to take 50% or 60% if I see it.

 

[Ogre]

Perhaps but Tesla doesn’t need the tax credit and some might argue that the infrastructure bill is inflationary and therefore harmful.
it’s certainly not a layup.
more important than the EV subsidy would be the billions paid to Tesla to expand their super charger network

This is so much more important.

It is a huge payout for work Tesla was already doing that will benefit all Tesla (indeed, all EV) owners.

 

[BornToFly]

I think if the EV tax break goes through, TSLA is going to really jump (the Hertz news will be a blip in comparison). I had sold covered calls earlier in the week to replace the money I had lost on the BCS. Regretting it now. The good news is that if TSLA goes to 2,000, I'll have so much margin that I will be able to sell so many BPS that I'll break WallStreet.

 

[Ogre]

I think if the EV tax break goes through, TSLA is going to really jump (the Hertz news will be a blip in comparison). I had sold covered calls earlier in the week to replace the money I had lost on the BCS. Regretting it now. The good news is that if TSLA goes to 2,000, I'll have so much margin that I will be able to sell so many BPS that I'll break WallStreet.

I think I need to liquidate most of the Amazon, Microsoft, and Apple shares I’ve been holding on to to make room.

 

[MrMoo]

I had sold calls on almost all my shares, in and out of IRAs last Friday. I think I started the week with cc's at 980,990,1000,1050.

I rolled about half of them so far, always for a little credit to
Nov 5 $1070
Nov 12 $1040
Nov 26 $1050
Dec 3 $1100
Dec 17 $1110
Mar 18 2022, $1300

I still have some $990s and $1000s to roll, hoping for that dip by Friday! And I'm not even mentioning the single Dec 17 $850 that was rolled last month!

Some of the rolls might be ok, others might need more adjustments. But they buy more time to hope for a better way out.

Hey man thanks contributing and letting me know. I had a similar conundrum, roll for a credit or just start eating into my "profits" from previous sold calls and start rolling them far OTM again. I'm desperately selling calls to try to recoup premium back lol. If we consolidate here those you should be out of the woods I think. Looks like we are for now at least. That 850 Sucks though! That is a real problem.

 

[ammulder]

I had been pretty confident of staying over $1000 at this point… but with both Amazon and Apple crapping on the macros, tomorrow may be… interesting. On the up side, the after hours money seemed to be going INTO Tesla, so maybe we’ll be the beneficiaries instead?

 

[InTheShadows]

I think I need to liquidate most of the Amazon, Microsoft, and Apple shares I’ve been holding on to to make room.

Haha. I did that about 4 months ago. I am literally all in. (Unless it’s some cash I need in case I need to manage positions ). The other day my son asked what other stocks we should invest in. I told him none. He was like that’s bit what you told me last year. Yea. Well that was last year and it’s wrong now. There is only tsla.

 

[InTheShadows]

I had been pretty confident of staying over $1000 at this point… but with both Amazon and Apple crapping on the macros, tomorrow may be… interesting. On the up side, the after hours money seemed to be going INTO Tesla, so maybe we’ll be the beneficiaries instead?

I actually think the other mega caps disappointing helps tsla. People will be saying oh, it’s over for them now. They are just another GE, ATT, V,VZ, KO. Time to look for the new growth stock. Let’s get in on this tsla thing.

 

[MrMoo]

Same here. Didn’t bail early. I’ve got 30 1000-1050 contracts. I’ve made up 1/3 of the loss with bps plays I closed yesterday and some otm covered calls. Is there really anything otm anymore?
Anyhow, I’m taking my queue from the Dave Lee gamma squeeze video and my personal stupidity. I’ll look for a roll tomorrow and today, if there’s a dip. I’m thinking I’ll add a bps condor to the trade to try to minimize my costs. The shift up is more than a gamma squeeze, it was driven by fundamentals and those will be reinforced going forward. It seems likely market makers will establish control again, but it may not be next week. Terrible macro news may still bail me out, but they appear to be tailwinds this week with budget deal likely tomorrow morning. The administration will want a full weekend news cycle. Worst case for me is full lose on 20 contract with 50 point spread. Not good, but less than my share gains.
Thanks @Yoona for some inspirational trading. I made 11 trades the last two days to reduce my losses. A bit of work to go.

Thanks for your input mate.

Good to hear that you have made some pretty darn decent plays to get back 1/3 of the losses. I'm selling margin secured puts (at safe OTM ranges) to claw back some of the losses too but at least over the last 3 days it felt like I was trying to fix a broken dam with Band-Aids.

I think the best we can really do is just what everyone in this thread is already doing. Keep on making trades, time will help stem the losses. Will need to see where this momentum ends.

 

[InTheShadows]

Hmm. Maybe I should sell some call spreads on LCID. IV 134%

Edit: nope, chain is too small.

 

[PastorDave]

FWIW, The Stocks Channel thinks we are likely going much higher if we get above 1080:

 

[buttershrimp]

FWIW, The Stocks Channel thinks we are likely going much higher if we get above 1080:

Which do we break first? 1200 or 1000? Make a guess.... I dare you.

My short term prediction, I think tomorrow we ATH on opening surge, but close at 1067.

We are currenty in meme mode on this stock. Next week I see a opening salvo early in the week followed by drop to 1000...

 

[EVCollies]

Last update from the manic and lucky investor.

Sold 50 shares at 1075, closed that March Call and reserved a Roadster to lock in the $200k price I'm sure will go up before release. Met my initial Roadster goal I set in 2018, no more options open, locked in massive gains overall, down only 50 shares, all in TSLA with everything else. Life is good. I'm logging off from my broker now and going for a run.

Love you all!

zoom zoom

View attachment 726666

So jelly, my wife discovered my reservation and made me cancel...

 

[mickificki]

Jeez I thought my 1300 strike CC for 11/5 were safe, now not so sure. Might need to just sit out of CC until this run is over, ugh.