-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
If you have the margin for a naked Put, I don't see the point of doing a spread. You gave away some of your premium for nothing. I am doing spreads because I am able to do 5X the number of contracts with all my margin than I can do with naked Puts alone, and therefore make more money (but at increased risk - you don't get something for nothing).sold some 12/3 900/800 BPS $3.58 or ~ 1.7% per week. Not great but still better than nothing.(mine is just supplemental income ...). Not sure if most here are enticed by this type of low returns?
With margin, looks like I can roll the short leg to a put and close the long leg - any time this trade goes south.
All BPS for this week (and past 2 ), expired worthless
thanks.
is calculated, in that I don't want margin in the 1st place
Also with going to margin this way gives me more wiggle room to fix the issue. (+SP goes down by 15-20% - the BPS get's in trouble -- initiate the put -- and wait for reversion back to mean )need more weeks and change in mind set before taking on margin - for now I am thinking 10-15% margin will be OK. So more practice with margins needed for me
Just 3 weeks ago, I excercised some of my calls to stocks and have margin in account only since then.
All in Tesla with stocks, calls and CC's so need the extra level of carefullness.
pz1975
Active Member
If you want to increase your safety margin, you could do $200 spreads, but in reality have enough margin for $300 spreads (so do maximum number of contracts your margin allows with $300 spreads taking into account margin drop of your account when the SP drops too). Then if the SP goes against you, you roll and increase from the $200 to the $300 spread so you aren't losing profit on the roll as the long legs get more expensive from the SP moving against you.
Got it. So spreads let you do more contracts without dipping into margin, but if you need to bail and get out, you can dip into margin on the rolls and use it to switch to naked Put strategy.thanks.
is calculated, in that I don't want margin in the 1st place
need more weeks and change in mind set before taking on margin - for now I am thinking 10-15% margin will be OK. So more practice with margins needed for me
Just 3 weeks ago, I excercised some of my calls to stocks and have margin in account only since then.
All in Tesla with stocks, calls and CC's so need the extra level of carefullness.
I am more greedy than you - I'm using all my cash and my margin, but I've been doing this a while and feel confident (Hertz BCS debacle aside...). 
Wow 30% in one day, that's yummy. Around what SP yesterday when you opened the BPS -900/700?
Just STO 12/03 $995 P - $16.20 each - was going to do a play for next week but will be traveling with the family (wife and twin 2 year olds) in the new Plaid up to Southern Georgia and don't want to be worried about closing or rolling while stuffing my face and chasing down toddlers.
Chicagoguy
Member
Off topic, but I just put in a reservation for my first Tesla. I told myself that I’d wait to buy a Tesla and rather just buy more stocks, but honestly, the amount of information regarding selling spreads and ICs from this thread led me to gains that I wouldn’t have been able to get without you all. So glad this thread exists.
Attachments
Congratulations!
I did the same - only took a month to get my Plaid.... its another level. The new Model S is amazing and the yoke makes it feel like a spaceship!
Am I the only one that has option strikes for Dec 3 gap from 750 to 795? I can’t seem to find the options pricing for 750-795? On TWS btw, checked on the mobile app as well, same thing. What am I missing?
I see the same on Schwab. They don't always fill in all the increments if they're too far from the strike price. It's annoying.
Elon is cracking me up.
Congrats man. Had to defer my Plaid to March as I currently have no room to park it. The wait is rough...but I'm holding out hope that maybe they'll unveil a slight rear-end redesign in the next three months? (lol, yeah right)
As for something slightly more on topic...
I rolled these 11/26 -$1030/+$750 spreads up to 11/26 -$1100/+$900 for an additional $39.00 per share on Wednesday, for a total of $104.00 per share. I'm only being so aggressive because of my outstanding covered calls (now back to 12/17 at $1190 strike). The BPSs are currently trading at $31.00, so I've already made a nice profit, but I'm not interested in closing out early - I'm going to continue to sell these spreads very aggressively every week until I've successfully bought back my CCs. I'm not quite willing to buy those back at their current levels ($40.00 per share)...ideally somewhere around $10.00 or below would be great, though every week my BPSs expire worthless I'll up my target price.
Congrats man. Had to defer my Plaid to March as I currently have no room to park it. The wait is rough...but I'm holding out hope that maybe they'll unveil a slight rear-end redesign in the next three months? (lol, yeah right)
As for something slightly more on topic...
I rolled these 11/26 -$1030/+$750 spreads up to 11/26 -$1100/+$900 for an additional $39.00 per share on Wednesday, for a total of $104.00 per share. I'm only being so aggressive because of my outstanding covered calls (now back to 12/17 at $1190 strike). The BPSs are currently trading at $31.00, so I've already made a nice profit, but I'm not interested in closing out early - I'm going to continue to sell these spreads very aggressively every week until I've successfully bought back my CCs. I'm not quite willing to buy those back at their current levels ($40.00 per share)...ideally somewhere around $10.00 or below would be great, though every week my BPSs expire worthless I'll up my target price.
oh, it's for a quick daytrade, i closed it at 24%... net ~$10 credit spanning only 24 hrs
how did i decide on the Short Straddle? here is what happened inside my head late Wed afternoon:
- 11/19 CC is on autopilot? check!
- nothing for 11/26? check!
- 12/3 1050-1400 CC is up 51% and still quietly collecting theta? check!
- nothing else to do? arrange the plants on the pathetic aquarium while dancing to
- looked at the Tue chart; hmmm, it's odd that the 10am peak 1057 is almost the same as the 4pm closing 1057... are the MMs back in control? if they are, then that is good news coz the friday close probably won't be an unpredictable runaway SP
- looked at the Wed chart so far; large V peaked at the 1100ish ceiling about 6 times; yes, the MMs are back and they are capping
- since the MMs are in charge again, maybe the maxpain chart can predict the friday SP; looked at the volume - whoa, humongous fight at 1100; tallest call wall is also 1100
- how to earn max $$$ from this insider info? it's either Short Straddle or Iron Butterfly; hmmm, SS it is - i don't need insurance if SP is going to be nailed, anyway; plus, this is a daytrade
- but what strike to choose? 1050/1060 was Tue range, but i don't think we're going down that low based on this morning's multiple reaching out to 1100; 1070 and 1080 are so random... the only even number remaining is 1090; that's it - Short Straddle at 1090
- let's check credit... $40 in 2 DTE?!?! let's do this; what is the probability of a 40 swing if MMs are in charge and target strike is already near the 1100 call wall?
(listening to the music again... it's been a good weekkkkkkkkkkkkkkkkk)
I don't think it will fill in unless the SP gets closer to that range. So you may have to modify your strikes a bit.
On the Hertz Monday, it really complicated my rolling strategy because the calls above 1200 were in increments of 50. Just one more thing to consider when selling options, I think.
Knightshade
Well-Known Member
So I previously mentioned I'd rolled -1095/+995 spreads to next week -1080/+980.... Now hearing everyone talking about the big 12/3 premiums I looked at that.
I could:
A) Do nothing, just hope the short week 1080s expire worthless next week and then see about new positions after.
B) Roll same strikes -1080/+980 out to 12/3 and get ~$8 net premium per share
C) Roll to 12/3 at -1050/+950 for about $1 net per share.
Kinda like B so it's almost certainly a bad idea.
Any not advice thoughts?
I could:
A) Do nothing, just hope the short week 1080s expire worthless next week and then see about new positions after.
B) Roll same strikes -1080/+980 out to 12/3 and get ~$8 net premium per share
C) Roll to 12/3 at -1050/+950 for about $1 net per share.
Kinda like B so it's almost certainly a bad idea.
Any not advice thoughts?
watching my -1120/+1170 BCS slowly fading.. and watching the ticker.. when to close, when to close.. still over $2 of theta left with 3 hours to go.
same - except I'm watching my 1105 cc rather hoping the SP fades away to <1100 - $3.5 theta left. Current print is $7. Gonna be puckeringly close - finger on the button to roll soon....Similar threads
