I've got a ton of margin, but I'm only doing one contract at a time. Also, I have so many random positions open I think it only took like 60k margin instead of the 200k or so it should have.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Do not believe that SP will clear 1400 by tomorrow. Not worried about that. Was simply making point. I sold a lot of those CCs yesterday as it was surging and I am down 100% on some of them even though they are all worthless tomorrow. The frenzy cannot be denied.
The DEC 3, OTOH, yeah shutting those down.
Thank you!
JusRelax
Active Member
Wherever you do actually have options showing up, try switching to a nice even number (like 1500) option, and then you should be able to choose Sep 23 and Dec 23. Your broker is probably blocking out Sep 23 and Dec 23 for strike prices that don't exist (yet).
My Not Advice is If they get ATM I would roll them out a month and for the highest strike that you can do for zero credit.Already 2% up pre-market, as usual I would say.
so let’s say it gets ITM 2 weeks from expiration, what would be the best strategy to roll them away?
buy back the 1325 26/11 Put and sell the same strike price 1325 with 24/12 expiration wishing me a Christmas gift?or extend even further to wish for a pullback in the 1100$ some day like you are currently betting on?
just ready my previous post, I apologize for the many typos my french keyboard is correcting many words in French and some sentences are barely readable. Sometimes I proofread sometimes I don’t, depending on the day I had.
Hah well this really didn't go how I had it plannedSold a -1150/+1105 BPS for 11/5. Now can I finally get myself into trouble!
Rolled it to -1200/+1155 for $6, expiry is still tomorrow. Maybe trouble incoming now?
Probably will shoot up to 1300 now..
Rest of my tomorrow expiring bull put spreads, I rolled to -1100/+1000 for some extra credits.
11/12 IC is 450 wide:
+p950/-p1000 11Δ 18% OTM
-c1450/+c1500 11Δ 18% OTM
Breakeven 994/1457
Knightshade
Well-Known Member
BTW per the discussion on shares vs LEAPS... anyone have any insight on how this impacts available margin to do other stuff like sell spreads? (like how available margin would vary if you had say 500k in shares and 500k in LEAPs, versus 1 million in just one of those, or versus say 500k in LEAPs and 500k cash?)
Google not being super helpful.... I did find this item:
Margin:
For purchases of puts or calls with more than 9 months until expiration, deposit / maintain 75% of the total cost / option current market value. When time to expiration reaches 9 months, the option no longer has value for margin purposes. Purchases of puts or calls with 9 months or less until expiration must be paid for in full.
Google not being super helpful.... I did find this item:
Margin:
For purchases of puts or calls with more than 9 months until expiration, deposit / maintain 75% of the total cost / option current market value. When time to expiration reaches 9 months, the option no longer has value for margin purposes. Purchases of puts or calls with 9 months or less until expiration must be paid for in full.
jeewee3000
Active Member
I used today's spike on open (and the high call premiums that come with it) to try and 'fix' my 11/19 1200cc's.
I split some of these into 11/19 1300cc's at a 2:1 ratio, for a slight credit. I have some cc's expiring tomorrow as well (1300's, I'm quite confident these will be fine), which would allow me to split out the remaining calls next week. If the SP goes bonkers next week, I'll split the 1300's even further. I'm trying not to roll out in time to make sure they expire worthless.
I'm not opening new cc positions until the 11/19 issue is resolved. At best this will be by 11/19. At worst I'm rolling for a while.
I'm not too worried about opportunity cost of rolling. I don't like selling cc's regularly anyway. I only did it after we rushed past ATH but as we all know that was a mistake. We all got blindsided by the strength of the rally.
I split some of these into 11/19 1300cc's at a 2:1 ratio, for a slight credit. I have some cc's expiring tomorrow as well (1300's, I'm quite confident these will be fine), which would allow me to split out the remaining calls next week. If the SP goes bonkers next week, I'll split the 1300's even further. I'm trying not to roll out in time to make sure they expire worthless.
I'm not opening new cc positions until the 11/19 issue is resolved. At best this will be by 11/19. At worst I'm rolling for a while.
I'm not too worried about opportunity cost of rolling. I don't like selling cc's regularly anyway. I only did it after we rushed past ATH but as we all know that was a mistake. We all got blindsided by the strength of the rally.
In my news feed on Fidelity this morning for Tesla, I get this article about Diess going before a special subcommittee of the board of directors to, in effect, defend his job. The money quote:
Cavallo is the works council boss - I believe that's the labor rep on the board.
Who seems to not understand that apparently the only thing Diess is thinking about are those huge challenges the company faces, and that Tesla / Musk are the yardstick to measure themselves against (and not measuring up very well right now).
Which got me thinking - I have no idea if Diess is actually any good as an auto manufacturing CEO. I don't know anything about him at all in fact, but it seems unlikely that he is actually bad at it as he's running VW - arguably the best car company in the world before Tesla came along. I also don't know if he's more the visionary type (Jobs) or the operations type (Cook) - would he make a good COO for Tesla?
Maybe as in sports he'd like to play for the winning team, instead of fighting with management about what the losing team needs, to match up well with the winning team.
Cavallo is the works council boss - I believe that's the labor rep on the board.
Who seems to not understand that apparently the only thing Diess is thinking about are those huge challenges the company faces, and that Tesla / Musk are the yardstick to measure themselves against (and not measuring up very well right now).
Which got me thinking - I have no idea if Diess is actually any good as an auto manufacturing CEO. I don't know anything about him at all in fact, but it seems unlikely that he is actually bad at it as he's running VW - arguably the best car company in the world before Tesla came along. I also don't know if he's more the visionary type (Jobs) or the operations type (Cook) - would he make a good COO for Tesla?
Maybe as in sports he'd like to play for the winning team, instead of fighting with management about what the losing team needs, to match up well with the winning team.
I got my cc for this week 1200s rolled to next week 1250s for a $7 credit. To my way of thinking that's a great upgrade on cc that I sold looking for assignment on (I'm not looking really hard for assignment ). I've also decided that I'm going to use this position, given the chance, to continue making pretty aggressive week to week cc sales. I'm curious to see just how big of a range I can roll effectively, how big the credits can get rolling up and down with the share price, stuff like that. This has become, in effect, a play position for me where the downside is I finally sell some leaps at a good price that I would like to sell anyway. If I can roll $50 week to week with good credits then I think I'll be playing for awhile.
). I've also decided that I'm going to use this position, given the chance, to continue making pretty aggressive week to week cc sales. I'm curious to see just how big of a range I can roll effectively, how big the credits can get rolling up and down with the share price, stuff like that. This has become, in effect, a play position for me where the downside is I finally sell some leaps at a good price that I would like to sell anyway. If I can roll $50 week to week with good credits then I think I'll be playing for awhile.
ended up rolling some deep ITM calls to more like 900 as was suggested., left CC untouched for now
bought some Jan 24 1400-2400 vertical spreads with the difference.
Hope to negate the 1400, with the new 1400's bought and move the 2400 more to other underlying shares. noticed
+ just noticed, title of this thread was about selling options (bought and sold )
bought some Jan 24 1400-2400 vertical spreads with the difference.
Hope to negate the 1400, with the new 1400's bought and move the 2400 more to other underlying shares. noticed
+ just noticed, title of this thread was about selling options
(bought and sold )
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Holy cow the premiums for puts are high for next week. All my put spreads are losing money while the stock price is up $27! I had to roll my "I dare you" to next week because it was just too lucrative ($15.65/share for $150 spread at $117 OTM, wait, what?!?).
Must... resist... using... more... margin... except the damn margin available keeps going up! Must... resist...
Must... resist... using... more... margin... except the damn margin available keeps going up! Must... resist...
For TDA at least my longer dated options don't give me any margin benefit at all. I'm pretty sure this varies by broker. Shares (I have very few, but plan to start loading up if we see a pull back) give (I think?) 60% margin or so. More than I expected, at any rate. So I maintain a large cash position and use that instead of margin to sell BPS, then also have about 3k-4k of delta from long calls (equivalent to 3k-4k shares), depending on what I think the SP is doing.
jeewee3000
Active Member
Noticed that too.
I'm cautious for next week though:
- share price is soaring
- lots of puts get bought
= lots of incentive to push SP down soon and cash in on the sold puts
It can't keep going up. It just can't. When we retrace 10% is anyone's guess, but I think it will happen within the next two weeks.
BrownOuttaSpec
Active Member
Picked up a few more 795/895 for 11/12 @ 3.10.... Personally I am playing it pretty safe with this huge run up we had. I feel like 900/1000 would be safe but I want a little less stress. Would this be considered a "bunt" instead of hitting a "single" ? 
Now time to sit back and watch that sweet sweet Theta decay.
Edit: I am really bad at getting the peak drop.... now its $3.30. I guess the 10:30am MMD is now 11:30am
Now time to sit back and watch that sweet sweet Theta decay.
Edit: I am really bad at getting the peak drop.... now its $3.30. I guess the 10:30am MMD is now 11:30am
Before or after a 1/(1-0.1) further gain?
Asking for a friend.
I couldn't resist and closed my 11/5 BPS @ 70% profit and opened waaaay OTM for 11/12, 860/660 @3.82, STO leg delta 0.04.
corduroy
Active Member
I had put an order in this morning for that same exact trade, just filled at $3.20. That's great premium for that low of a risk.Picked up a few more 795/895 for 11/12 @ 3.10.... Personally I am playing it pretty safe with this huge run up we had. I feel like 900/1000 would be safe but I want a little less stress. Would this be considered a "bunt" instead of hitting a "single" ?
Now time to sit back and watch that sweet sweet Theta decay.
Edit: I am really bad at getting the peak drop.... now its $3.30. I guess the 10:30am MMD is now 11:30am
With such a bullish close yesterday I rolled the short strike of these up to $1,250 for a net credit of $30 (for a total credit of $70). When the stock was hovering around $1230 this morning I rolled them back down to $1200 for a $25 debit, leaving me with a total credit of $45. I just closed the spreads out at $10 a little bit ago, for a total net credit of $35 on the trade and ~78% returns.
My theory on this is TSLA is getting lumped with the MEME stocks of 2021; AMC, GME etc and hence the premiums are ridiculously good. Yes we can drop but tough to see anything that resembles the swings in AMC/GME.
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