... In total he wanted to sell ~20m. Monday was not even 1m.Dang, it’s a good thing he sold on Monday! He just missed that sell off the next morning
Let's see if we get another filing tomorrow..
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Let's see if we get another filing tomorrow..
Yes!! Thank you so much! It makes a lot of sense and I'm happy where my placements are. Now that Elon has sold his shares, looks like the stock is roaring back up!
It's true, I panicked and made some of the worst possible moves in the moment, such as BTC my BPS at the bottom, instead of rolling. I've definitely learned a lot. I can't wait for my BPS to be expired. I'll be much happier.
Really appreciate your insight.
I'm with you there. I have been waking up every other hour with my heart racing. In some ways, I'm not sure options are the way for me to go. Buying and holding shares have worked for me, with less stress, so I am reconsidering my approach. Speaking for myself of course and you do you. Just wanted to empathize with your situation.
And I thought I was cowboy with my 1300 CCs.YepCrazy, right?
It might help to know that I opened them when the shares were aroudn 1000 this morning - they'd be 1150s instead as the final position of those that I opened.
you have balls of steel my friend being 0.1% away from being ITM :X
I had sold my 995 12/11 puts for 9.50 this Monday
tried to buy back this morning at 7.50 but the order didn’t go through.
when the stock was going back down I tried to buy them back at 12.25 and sell 845 26/11 puts for 12.25
The BTC buy order for the 995 12/11 puts for 12.25 went in but not the STO for the 845 26/11 puts. It went through 1h after when the stock went down.
My broker doesn’t offer to roll in a single 2 leg transaction. I have to call to set up those. Really terrible trading platform. Glad it was only 2 contracts and not 100 of them. At first, only the buy back at a loss did go through, then 1 hour after the STO went through. I would have to roll by STC and BTO at market value to be sure both orders pass at the same time but with 2 suboptimal prices.
Yes, I know I rolled for absolutely nothing. Just practice when the stakes will be higher.
Have the trading weeks been this calm before? It’s almost more exciting than driving a Plaid Model S.
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So you lowered your strike price by $150 dollars? That's not nothing. Good practice, and you'll sleep better the next two weeks. And you can make money by rolling again soon.
scubastevo80
Member
If we have a big move at tomorrows open, I may close most/all of my BPS and regroup on strategy going forward. Certainly had a nice introduction to “too close for comfort” rolls 3 weeks into trading.
Sounds good to me. What sounds even better to me right now is waiting for a lull tomorrow and loading up on EOY calls. Wish me luck.
This is a tremendous idea. While I like the concept of “Being the house”, it seems like my best results have been with buying vertical call spreads. I can usually get a double or triple in just a few months. The obvious downside is you get wiped out if you get greedy.
Selling puts is similar though, if the SP drops too fast you can lose a lot of money fast.
Thinking maybe combine the two, selling safe put spreads when things are stable, then when the SP dips load up on vertical call spreads. Often when the price moves fast enough you can cash out the spreads for a big profit long before expiration.
EDIT: Also, considering the catalysts: Berlin, Texas, 4680 production ramping up, Cybertruck in late 2022, it’s likely late 2021 and into 2022 it’s going to be painful watching the SP run away even as you profit from your safe BPS.
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Latest: breaking ....
He even sold today and yet we end green!!! We gonna be so good coming days. Back to $1200 immediately.
He even sold today and yet we end green!!! We gonna be so good coming days. Back to $1200 immediately.
All of the forms account for about 4.5 million shares sold. Only another ~12 million shares to go before he has sold 10%... (i.e we are only a quarter of the way there.)
I can relate - it has been an absolutely wild few weeks. Hopefully we come out of this with a period of relatively high IV even after the stock stabilizes a bit.
If we are at 1100, 950 is only 14% away. Given the volatility, I'm not a fan. My closest it 900/700, and it makes me a little nervous.
I started the week with a smallish 70x position in 900/700 BPS for next week. Obviously the premiums were too juicy on Tuesday and I couldn't resist adding another ~20x, bringing it up to 90x
Seeing no form 4 yesterday, at open today, moved 45 of the 900 shorts strikes to 790 for December expiry and replaced the rest of the bps (45x) with 22x outright short puts at 1050 for this Friday. The new 790/700 actually is now a diagonal and I have punted rolling the 700 because I don't want to pay for the high IV. Hopefully will be cheaper to roll late next week when the dust settles.
Both these trades today were roughly for even credit.
While 900 never got into trouble, I wanted to deal with it rather proactively as it was next week expiry. My calculations show that for farther in time the expiries, it's better to deal with them much sooner than when they become ATM. So was a bit proactive with it.
Luckily, got into this week with a relatively smaller position and that gave me a ton of room to manoeuvre. Hopefully we stay above 1050 next couple of days, but may have to roll them out.
Seeing no form 4 yesterday, at open today, moved 45 of the 900 shorts strikes to 790 for December expiry and replaced the rest of the bps (45x) with 22x outright short puts at 1050 for this Friday. The new 790/700 actually is now a diagonal and I have punted rolling the 700 because I don't want to pay for the high IV. Hopefully will be cheaper to roll late next week when the dust settles.
Both these trades today were roughly for even credit.
While 900 never got into trouble, I wanted to deal with it rather proactively as it was next week expiry. My calculations show that for farther in time the expiries, it's better to deal with them much sooner than when they become ATM. So was a bit proactive with it.
Luckily, got into this week with a relatively smaller position and that gave me a ton of room to manoeuvre. Hopefully we stay above 1050 next couple of days, but may have to roll them out.
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I'm with BTF here, don't get carried away with the general euphoria of Elon selling (how weird is that to say!), I expect the stock to remain frothy and volatile
Bottom line is we have no idea, so just, well, err on the side of caution
Is an advice
100% full ack!
This is why I'll try to close my 11/19 -900/+700 BPS I rolled into yesterday asap. They're already at 50% profit, and I suspect that with a further 74% of shares to sell, we are far away from BAU with TSLA. Even closing @ >50% doubles my weekly target income with options, so I'm fine with that.
A lot of people report closing positions with a loss (sometimes while panicking). Am I the only one who has never closed a position with a loss? I simply refuse to take one! I've been selling TSLA options for 1,5 years now and been through some big drops and rises, been under water on plenty of occasions, but have always waited for the stock to go my way again (back to the mean, which somehow it always does).
Knocking on some wood now.
I only sell naked options and those are definitely easier to handle than spreads. And I don't dip too deep into margin. But I found that trying to stay detached from the money involved, trying to looking at it as extra money I can afford to lose, helps me to not worry if a position turns deep red and helps me make the good decisions. If I see the stock going the wrong way I try to pro-actively roll a position (always trying to receive extra premium, absolutely never paying premium).
Avoiding a loss at all costs may not always be the best decision. Sometimes taking a loss can open the opportunity to collect more premium in the future with better positions. But still, taking a loss simply doesn't feel right.
Knocking on some wood now.
I only sell naked options and those are definitely easier to handle than spreads. And I don't dip too deep into margin. But I found that trying to stay detached from the money involved, trying to looking at it as extra money I can afford to lose, helps me to not worry if a position turns deep red and helps me make the good decisions. If I see the stock going the wrong way I try to pro-actively roll a position (always trying to receive extra premium, absolutely never paying premium).
Avoiding a loss at all costs may not always be the best decision. Sometimes taking a loss can open the opportunity to collect more premium in the future with better positions. But still, taking a loss simply doesn't feel right.
I'm mostly with you on that and could have said the same until relatively recently. The only times I've really come unstuck is with spreads close to expiry that I'm expecting to expire worthless but go ITM with a rapid and counter intuitive change in the share price. In this situation there is little prospect of rolling a spread and when you can roll it's going to be to a relatively poor position.
So these days if I'm put in the same position again (hopefully rarely if ever) then I just close them out and take the loss and then choose the time and nature of the option I want to replace them with and when. Rolling always involves taking a loss anyway as the first step in the process. Just blindly rolling to whatever position gives you a neutral premium or small credit can just be jumping out of the frying pan into the fire.
You're absolutely right: rolling a position means taking a loss first. I should have said: never closing a position with a loss and then not immediately opening a new one for more premium than the loss.
Ah, but that means sticking with the original strategy vs picking a new one which may be more profitable.
For instance, one could roll calls from 600 to 1200 without extra debt, but it may be better overall to have taken the initial loss to gain the appreciation of the shares.
P/L vs account balance metric.
It also depends on original intent. One could sell calls to get a higher return per share than the current price: I'd sell at X, but we're at X-$20. Or I'm happy with this price, but let's get a little more (if you don't mind keeping the shares). If the situation changes, say price is at X+40, one might think, "given the new information, I'd buy back in at this price" which is equivalent to buying the call back.
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