BrownOuttaSpec
Active Member
Wow, I didn't even think about this option to offset the loses, Thanks!
This stock isn't boring.. $60+ swing in the first 15 minutes. from $990 to $1055.. Oh Mylanta!
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
This stock isn't boring.. $60+ swing in the first 15 minutes. from $990 to $1055.. Oh Mylanta!
So does that mean Elon is done selling?
Now I am tempted not to bother rolling anything
My shot legs are at -p1060 - probably too risky. Better to roll?
Edit - also have -p995. Keep those or roll out to next week?
Now I am tempted not to bother rolling anything
My shot legs are at -p1060 - probably too risky. Better to roll?
Edit - also have -p995. Keep those or roll out to next week?
I try to avoid "gambling" as much as possible. If you gamble and guess right, you make more money, and there lies the temptation. But guess wrong, and
. I personally would take this opportunity to move everything as far from the SP as I can to live to fight another day.
dc_h
Active Member
I sold some BCS 1300/1500 at the open to make more money in case I need to roll my 11/19 900/700 BPS. I can still do another similar number of contracts to make additional iron condors for next week. I will try to be patient and see how high we go, and maybe do 1400/1600 with the rest later.
I was going to do the same thing (close the sold leg, keep the bought leg), but the risk of a dead cat bounce or quick short term reversal before we continue downward kept me cautious. So, I instead rolled the entire BPS. 20x 900/950 11/12 flat rolled to 850/900 11/19. Now up 40% since the roll, but I intend to hold on to that BPS well in to next week.
And now I wait... never a dull day! Still waiting on all of these positions:
- 50x 700/800 1100/1200 IC
- 20x 840/890 1230/1280 IC
- 30x 840/890 1320/1370 IC
- 30x 830/880 BPS
- 50x 840/890 BPS
- 5x 910 naked put
BrownOuttaSpec
Active Member
Remember guys.... I think the Uptick rule went into effect yesterday (and today). It's possible that Thursday is going to be crazy again. Don't get too confident by this morning's stock price increase ($1070 already, wow).
I've rolled the majority of my spreads to next week for a healthy credit but a +$5 increase to the spread. I've left quite a few 1050/1080 to ride it out and see if I can get them to expire OTM. I also sold a couple of hundred $1150/1180 BCS for extra premium and margin. At this stage I'd say MM want it above $1100 and below $1150 but they may not get as much say in it.
Stretch2727
Engineer and Car Nut
Got to love this volatility if you are selling options. I am getting premiums 3-4x from what I was getting a few weeks ago.
dc_h
Active Member
Are the 1150/1180 for Nov 12? I just rolled 1300-1400 to 11/19, which is enough danger for me.
corduroy
Active Member
Closed my 11/12 -895/795s at 50% profit. At this point I am just trying to de-risk anything I can. I don't trust this move today.
Aging poorly so far
. All these ridiculous swings are designed to impact people who are reckless with margin imo. Market makers feast on that. I’m glad I kept most of my margin unused and did not panic.As an example I was prepared to take max loss on my 10 X 1100/1040 BPS but might have a chance to get out with very little damage.
Well, I finally dealt with my last -c805s yesterday. Bought back some CSP puts at a loss, freeing the cash temporarily, bought back the calls, then resold puts to regain some cash. Today I resold CCs and now have a tighter p1100 & c1205 (1:1 ratio) strangle for 11/19. That account took a pretty big hit in October, so I’m down 20% or so from my peak, but still significantly more than February, so not panicking. Other accounts are all ATM or ITM sold CSP puts for 11/19, with relatively little cash. Unless the SP keeps rising, I’ll get some shares back, wheeling style.
Definitely finding out that having more cash in the IRA accounts facilitates buybacks and position management, which is completely the opposite of my 100% mutual funds method for the last decade. I may actually document some of this stuff and finally develop/follow a trade plan. First WAG is 42.0% cash, 69% of remaining (40%) in puts, leaving 18% in shares/CCs. Numerology at its best.
Definitely finding out that having more cash in the IRA accounts facilitates buybacks and position management, which is completely the opposite of my 100% mutual funds method for the last decade. I may actually document some of this stuff and finally develop/follow a trade plan. First WAG is 42.0% cash, 69% of remaining (40%) in puts, leaving 18% in shares/CCs. Numerology at its best.
I am at 60% right now and will close at 70% for the same reason for 11/19 850 puts
NOT-ADVICE
I've decided this morning to return to the market but only through Friday this week (3 day positions). I'm also coming back with covered calls and cash secured puts - no spreads. My rationale on these types of positions is that I consider these to be highly manageable and that the outcomes will be desirable (no opening positions for $1 just because I want to open something).
My larger view of TSLA hasn't changed - I see hints today that the Elon poll is behind us, but they're only hints. In particular the uptick rule is going to make trading today somewhat artificial compared to recent behavior. The poll impact could easily be back with us tomorrow along with another big down day (in fact I'm sort of assuming that until proven otherwise).
In my return to the market I've opened cash secured puts at the 995 strike for this Friday. I consider these strikes to be in play this week but I am also confident that I can roll these down to 800 if needed, and I consider 700 to be firm support. I collect a $7 premium now and may be rolling for a few weeks before I earn it.
Naked puts are how I got into trouble back in Feb of this year, but what really got me into trouble was that I was chasing the share price upwards and then I didn't roll back down aggressively enough with the reversal. This time I'm closer to the middle or bottom of a trading range, and I'm more knowledgeable about rolling down if the shares keep going down. I won't be chasing the share price up nearly as aggressively as I did last time (something like an 820 put with shares at 850 early in the year; and then rolling for big credits 1 or 2 times instead of strike improvements).
I've also opened 1100 and 1150 strike covered calls for this Friday for about a $7 premium. My timing opening these was .. bad (but better on the 1150s!). My thinking is that time is short and that I can roll these upwards to the 1200 strike at least, and maybe even 1300, should that need arise. And from there taking assignment at those prices isn't onerous to me in the least. Heck - if I were ready to be assigned last week at 1200, then I'm also willing to be assigned at that strike this week (with a roll or 3). I'll probably be better off in fact to get some of these assigned, but I'm not really seeking that.
The net of these positions is that I've put myself into 995/1100 and 995/1150 short strangles. This is the type of strategy I was using last year into the first few months of this year, and its one that I like. Back then I called this my semi-perma strangle where my objective was to keep both sides of the strangle open nearly full time. The specific value I see in this sort of position is that one side is always winning and if I do it better this time around, then the other side is being managed effectively until the day that it can return to generating income. And sometimes both are winning because the share price is nicely tucked in between the put and call strikes.
I won't be attempting to keep both sides open continuously. Instead I'll bias towards taking early wins and opening positions into strength / closing positions into weakness (open puts on down days; close puts on up days).
Bigger picture is that I believe I've got a wider range of tools that I can make use of. I think that these high volatility times are better served (at least for me) with naked puts / covered calls making up short strangles. Also no margin at all.
The low IV times over the summer were very well served with the put spreads (very well served = most profitable months for me, ever).
I view these on a continuum and will be trying to be more dynamic about the particular type of trade that I choose each week. At the start of the year I couldn't have done this, mostly because I didn't have any experience with spreads.
Something I'll also be considering starting next week will be really wide spreads. Like $400 wide spreads on up to 1/2 share price spreads. The intent with these wide spreads would be to get a little bit of leverage into the puts where I've always made the best money (still no call spreads). My intent as always with the wide spreads is to create positions that behave like naked puts. If I were to do a $400 wide spread today instead of the naked puts, I could be doing 600/1000 put spreads for $7 - $0.03. Those will have effective rolls down to 800 with good rolls down to 900. Sort of like how a naked put would work, which is what I would be aiming for.
I've decided this morning to return to the market but only through Friday this week (3 day positions). I'm also coming back with covered calls and cash secured puts - no spreads. My rationale on these types of positions is that I consider these to be highly manageable and that the outcomes will be desirable (no opening positions for $1 just because I want to open something).
My larger view of TSLA hasn't changed - I see hints today that the Elon poll is behind us, but they're only hints. In particular the uptick rule is going to make trading today somewhat artificial compared to recent behavior. The poll impact could easily be back with us tomorrow along with another big down day (in fact I'm sort of assuming that until proven otherwise).
In my return to the market I've opened cash secured puts at the 995 strike for this Friday. I consider these strikes to be in play this week but I am also confident that I can roll these down to 800 if needed, and I consider 700 to be firm support. I collect a $7 premium now and may be rolling for a few weeks before I earn it.
Naked puts are how I got into trouble back in Feb of this year, but what really got me into trouble was that I was chasing the share price upwards and then I didn't roll back down aggressively enough with the reversal. This time I'm closer to the middle or bottom of a trading range, and I'm more knowledgeable about rolling down if the shares keep going down. I won't be chasing the share price up nearly as aggressively as I did last time (something like an 820 put with shares at 850 early in the year; and then rolling for big credits 1 or 2 times instead of strike improvements).
I've also opened 1100 and 1150 strike covered calls for this Friday for about a $7 premium. My timing opening these was .. bad (but better on the 1150s!). My thinking is that time is short and that I can roll these upwards to the 1200 strike at least, and maybe even 1300, should that need arise. And from there taking assignment at those prices isn't onerous to me in the least. Heck - if I were ready to be assigned last week at 1200, then I'm also willing to be assigned at that strike this week (with a roll or 3). I'll probably be better off in fact to get some of these assigned, but I'm not really seeking that.
The net of these positions is that I've put myself into 995/1100 and 995/1150 short strangles. This is the type of strategy I was using last year into the first few months of this year, and its one that I like. Back then I called this my semi-perma strangle where my objective was to keep both sides of the strangle open nearly full time. The specific value I see in this sort of position is that one side is always winning and if I do it better this time around, then the other side is being managed effectively until the day that it can return to generating income. And sometimes both are winning because the share price is nicely tucked in between the put and call strikes.
I won't be attempting to keep both sides open continuously. Instead I'll bias towards taking early wins and opening positions into strength / closing positions into weakness (open puts on down days; close puts on up days).
Bigger picture is that I believe I've got a wider range of tools that I can make use of. I think that these high volatility times are better served (at least for me) with naked puts / covered calls making up short strangles. Also no margin at all.
The low IV times over the summer were very well served with the put spreads (very well served = most profitable months for me, ever).
I view these on a continuum and will be trying to be more dynamic about the particular type of trade that I choose each week. At the start of the year I couldn't have done this, mostly because I didn't have any experience with spreads.
Something I'll also be considering starting next week will be really wide spreads. Like $400 wide spreads on up to 1/2 share price spreads. The intent with these wide spreads would be to get a little bit of leverage into the puts where I've always made the best money (still no call spreads). My intent as always with the wide spreads is to create positions that behave like naked puts. If I were to do a $400 wide spread today instead of the naked puts, I could be doing 600/1000 put spreads for $7 - $0.03
. Those will have effective rolls down to 800 with good rolls down to 900. Sort of like how a naked put would work, which is what I would be aiming for.Similar threads
