Wiki Selling TSLA Options - Be the House

[Knightshade]

Not that I expect anyone to care, but anyone selling a premature BPS today (as we start dropping from the ATH), for NEXT Friday, is getting a from me today

I apparently got one from you for an IC- where the short call is ~20% green right now vs only 10% red for the short put (and the call part was ~60% of the IC value too)

 

[alterac000]

Feeling things are overheated, but going along for the ride however long it lasts. Back in recently with some conservative positions.
11/5 Bps 750/550 $2.12 rolled up to 940/740 today for $1.2 net credit
11/5 Bps 800/600 $2.4 will hang on for now until/unless something else declares this week
Cc 1500 $.60
Bcs 1500/1700 $.60 placed partially filled

May end up regretting the cc and bcs, already been burned on the way up last few weeks, but hopefully being almost 30% away from sp will be "safe". Actually in the time it took to write this post the bcs ordered filled and are already underwater lol

Opened 11/26 1200/1300 bull credit spread last week for $12 to try to capture some upside. This is nicely up and I'll be watching for a sell point.

I agree with adiggs that goals play into the overall strategy. With shares as high as they are now I don't feel as compelled to strive for wealth accumulation. Much more interested in 'safe' income (however safe TSLA options can really be) and minimizing losses. Could be famous last words whenever the next big TSLA drop happens though!

This volatility sure is interesting. I guess this is what makes traders hum?

Rolled the 11/5 940/740 BPS to 11/12 750/550 BPS. Astounding to get $0.91 credit on this roll. I have no appetite for risk to the downside at the moment even if it means leaving premium on the table.
I accidentally opened $1350 CCs for 11/12 (should learn to be more careful before pressing confirm - was trying to roll 1500 CCs down to 1350 for this week) but worked in my favor briefly and closed it out with a 5.66% gain.

Effectively now left with
11/5 ICs -800/+600 -1500/+1700 (1/2 of usable margin) and
11/12 ICs -750/+550 -1500/+1700 (1/10 of usable margin)
all legs opened separately at different times

No CCs at the moment but may try for some .01-.03 delta in next day or two. Good luck!

 

[EnzoXYZ]

These are my "safe" positions to use up a lot of the unused cash for this week.

My less safe positions open are:
11/5 -1000p/+900p (I'm not too worried about this, though, I don't think we'll go below $1000 this week.
11/19 1200cc's (already rolled a few times, they started out as 1050cc's when Hertz-Monday happened). I'm only rolling these if SP stays over $1200 an entire day or if we zoom towards $1250 on crazy volume on a single day.

Reason I prefer to keep my shares is largely tax risks, sprinkled with some FOMO and sentimental value.

I have a bunch of 1090cc that was rolled from 1050 also. Who knew 150 DOTM would be 50 DITM at expiration and worse. I’m thinking about rolling some into 11/12 if this drop doesn’t continue. Been painful as these shares have huge tax implications.

 

[vwman111]

I have a bunch of 1090cc that was rolled from 1050 also. Who knew 150 DOTM would be 50 DITM at expiration and worse. I’m thinking about rolling some into 11/12 if this drop doesn’t continue. Been painful as these shares have huge tax implications.

Are you looking to roll out just 1 week? Or rolling far enough out to get back ATM?

 

[st_lopes]

Added some sold puts at $900, and still comfortable with some margin left to manage positions if for whatever reason I need to manage my remaining IC for this week. I welcome having those be assigned given my net proceeds on assigned CC this morning was $905/share.

 

[adiggs]

I have a bunch of 1090cc that was rolled from 1050 also. Who knew 150 DOTM would be 50 DITM at expiration and worse. I’m thinking about rolling some into 11/12 if this drop doesn’t continue. Been painful as these shares have huge tax implications.

Not a tax pro (thus NOT-ADVICE), but as I understand it, if you roll those cc out into 2022 and then take assignment, then the tax hit will be in 2022 rather than this year (i.e. - the day of actual assignment). That might be helpful - if you can't avoid the tax hit, then you can at least put them into the tax year you would rather they happen in.

Heck - you could go crazy and roll out to 2023 or 2024. I'm not a fan (I'm a big fan of NOT rolling short calls out to distant strikes) but it's an extension of the idea on how to manage when the tax implications hit.

 

[InTheShadows]

STO BPS 11/12 -790/690.

33% and $390 OTM, and if I have to mange these I'm resigning from options trading.

If you have to manage these I am selling all of my shares and buying 2024 800c LEAPS.

 

[adiggs]

If you have to manage these I am selling all of my shares and buying 2024 800c LEAPS.

That'll be like serious party action if 800 strike calls are ever ATM again.

Yeah - there will be a lot of pain in this thread if we go there too quickly, but if we take a few months going down (which is kind of the same % drop as the previous $900 ATH down to mid/upper $500s) then I'm good to go! I'll do a MUCH better job of managing my puts on the way down, and totally ready to load up for The Return.

 

[bonk3125]

I think you're safe, but would probably make more money if we drop 10-20% first. The point is we don't know - a lot of trading still to happen the next few days. After my massive burn last week, I am all for more clarity.

I’m still opening contracts for THIS Friday lol.

 

[MindOverMatcha]

Made some poorly timed trades. So many trades I'm not even sure what my net gain was.

IRA: Sold shares at the bottom at 1155. Bought back some at 1165 after 10 minutes of FOMO and used some of the cash to do a 11/5 BPS at 1080/1040.
Brokerage: Used margin for 11/5 BPS 1000/970, 1010/985 when the stock price was at 1182. Now it's at 1172. Oh well. Just crossing my fingers and hoping that all ends well.

Very messy set of trades and would've done better just sitting on my shares like the past two weeks. Was anxious to sell some BPS and got nervous about how high we've come (though we are now under the upper BB). Nothing to do but watch and wait

edit: Feeling thankful for the green after-hours.
Wondering if Max Pain could used as a helpful "floor". I know Max Pain hasn't been helpful as an indicator the past month during this bullish run.

 

[dl003]

Seems like I'm a lot more gung ho than I should have been this week. Still have naked -1000p for this Friday and -900p for next. The way I see it, today was the test and we passed. Tomorrow the Fed is unlikely to surprise the market with anything other than beginning to taper as scheduled. We are going up on massive volume and already had 2 big pullbacks. Good to go.

 

[CHGolferJim]

My condolences. It's painful to part ways and accept the losses. But better to cut the losses now before it gains further. A lot of trading is psychological and pivoting to different methods depends on emotional and cognitive flexibility. TSLA is a beast and as bullish as I am, I'm still just sitting on my hands. I want to sell puts and put spreads, but I know mentally I may not be able to handle the unease. This is my way of "taking a vacation".

Buying back into TSLA or selling puts can generate enough gains to make for these losses in the next few weeks. Crazy to think we may break 1200 today or tomorrow.

Well, it cost $100k less early Monday than at Tuesday's close!

 

[MindOverMatcha]

Well, it cost $100k less early Monday than at Tuesday's close!

Wahoo! Well that's a win!

 

[Right_Said_Fred]

The stock went vertical for a week. Now it might be coming down. Nobody knows what it will do. I don't understand rolling on Tuesday to next Friday all ready. What if we drop to $1000 by this Friday? You will probably get the same premium for a much lower strike in a few days, and maybe have more clarity about what next week will bring. It just seems to me that when the stock has been doing the unexpected, the least number of days between your trade and expiration is probably best. Patience....

I’m not in the business of predicting what the stock will do, I’m in the business of earning premium. My puts for this Friday already lost 75% of their value and I expected them to lose less value from now on than puts for next Friday, which is why I decided to roll them. It could very well be that we go down and I was too early. But we can also get another leg up.

I don’t know if doling out disagrees on other people’s trades is the right approach.

 

[corduroy]

I tried something new today. After taking heavy losses this week, I am admittedly gun shy with new trades. So I STO'd what I would consider a risky BPS and immediately after it filled set a stop limit order for the trade amount. It was moving in the profit direction for about 15 minutes then turned around and I got stopped out.

I've done a ton of trades that went red for a while then ended up 100% profit, so this technique obviously would be very restrictive. I wouldn't use it on high conviction trades. But it might have it's purpose in trying more risky maneuvers that I don't want to get away from me.

 

[ammulder]

I have also rolled my put spreads to 11/12. Got the premiums I was looking for, and still plenty OTM. It’s true that things could change, and also that I could have done still better if perfectly timed. But my existing spreads for 11/5 were already near worthless so there was nothing to be gained by sitting on them, and since I can get the prices I want for next week, why leave the chance for a horizontal or up move to take that away?

If the stock falls more than $100 I’m going to need to be on alert, but that’s nothing new.

I did find today’s action somewhat bullish. This was supposed to be the big down day, the blow-off. That all ya got?

(Famous last words…)

 

[MindOverMatcha]

Trying to sort out profitable routes for BPS in IRA account. It’s helping me figure out what optimal premium count I can shoot for while “beating” the gains I’d get from holding the stock.

Example: Using 30k in IRA.
Goal: gain from 25 shares < Premiums from 7x BPS (11/5, 1080/1040)
2.66 x 7= $1862
$1862 (premium)/25 shares = 74.48
Goal would be to beat a share price increase of $74.48.

The BPS strategy could win when the stock trades flat, down, and up. As long as BPS doesn’t go ITM and share price gains aren’t greater than premiums given.

On the bearish trend, as long as the stock doesn’t hit the short leg you’re good. Because you got the premium and you sold when it was higher, now you have more cash to buy the shares at a cheaper value.

On the sideways/flat move, you win because you have extra income from the BPS, the BPS expires worthless, and you can buy more shares with the premium.

On the uptrend, you win because the BPS expires worthless and maybe you made more from the BPS premiums from paper gains of the stock . Even better when the premium gives you more than what the growth of the stock would give you. Then you can buy more shares or keep doing BPS to net more premium that would be more than the possible gains of the share price at the end of the week.

Buy to close BPS, then use the cash to buy shares Thursday/Friday before Monday spike.

 

[UnknownSoldier]

Premiums seem just awful on the call side, I priced out some CC's and noped out of there because I would genuinely have to risk my shares for any real money. Testing out some BCS were even worse, it was telling me I could get $690 for a $320k max loss risk. Really?

Traded 100x 11/5 -880/+820 BPS instead and collected about $6k premium. Just need stonky to stay above 880 before Friday, i think I might be safe here haha.

 

[Drezil]

Thanks to TSLA, Options & confidence from here i had my best month ever.
+406.8% gain in one month on the entire portfolio - at least to the statistics of IBKR.

Thank you, guys

 

[JustMe]

I sense we are past the peak.

Today was a pretty even struggle between the bulls and the bears. We ended the day right on the VWAP. But the close was red and we are off $40 from the high. the SP is slowly drifting down after hours.

According to self-proclaimed experts- If the run up was driven by short term options bought yesterday and today, MMs will unwind their hedge positions over the next few days. Of course that was expected to happen last week but there was a huge amount of FOMO. Once people sense the squeeze is over, they will rush to the door to take profits. Fear will overtake greed

I expect the next three days to be red.

Full disclosure, I bought 11/5 $1150 puts at the end of the day (I feel a little dirty)

What interesting times we live in