Donor advised charitable funds are quite nice for taking a lot of the work out of giving. Once created you simply transfer money, stock, or whatever into it at which point you are now able to take the deduction. Then you can at your leisure with a couple clicks direct the fund to give money to the charities of your choice and they do all the legwork of paperwork and so forth. You can also have the fund invest its assets in restricted ways (similar to a 401k) if you like.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
scubastevo80
Member
We don't have $100k+ in the account if I get the shares put to me. It's my parents "risk taking" account that has about $28k in it. They opened in Sept and I've taken it from $22k to $28k in 3 months (most of the gain is through the initial long stock/LEAPs that were put on), but they don't have the cash to consider all the options - hence my question on lower account size alternatives.
Scuba,
It's kind of the default to think in blocks of 100 shares - since that is 1 contract (put or call)
You can definitely buy stock and use that as margin - however all of the US brokers that I am aware of have limitations on Tesla stock as margin.
Most are 40% - so you will not get the full amount of margin that the securities are worth.
Leaps are also (usually and depending on the broker) not counted towards margin.
I would think that you growing the account and learning from doing what you are now is probably the best way to go about it, until you can get some slightly OTM leaps in there as well.
Happy to take this to PM if you want.
I should add that donating highly appreciated long term holdings is by far the best thing to do as it completely avoids capital gains tax. You get to take a deduction of the full amount of the value of the stock, and the charity gets the full amount of the value of the stock. It's win-win.
I sold cash secured 12/17 -1045P for $27.90 yesterday that's about 100% negative. I dont mind getting assigned if it comes to that. I also dont think we'll be in this range by 17th - so, I'm fine either way, but was wondering, does it make sense to roll to 12/23 for $8.80 credit?
If it was me..... *not advice*
I would not roll it - it still has a ton of time value in it being out at 12/17 and you would just be adding more at 12/23.
I'm feeling bold about the last 3 weeks of the year but you never know and if you roll it now, we could always leg down before quarter end.
Then you are rolling out for more time and premium.
If I was to roll, it would be next Friday.
I would be patient and see where we are at closer to the expiry date. A lot can happen between now and then, and you would be giving up a ton of time value by rolling earlier. Just my thoughts, others may think differently.
Edit: Yeah, what ultradoom said!
Hearty Congratulations!!Bonjour, mes amis! (Hello, my friends!) I shut down my 12/3 IC's BPS... $1M in 2 weeks - do you like it, boys?
View attachment 739446
The BCS i am closing on Fri.
In other news... Today is my 1-year anniversary doing options! I lived to tell the tale! I survived one full year of wins and losses (some were really, really, really painful). Can you imagine my first BPS had a width of 5??? I think -p600/+p595
THANK YOU SO MUCH
THANK YOU SO MUCH
THANK YOU SO MUCH
... to this thread and to everyone for your postings, comments, not advices, corrections, support, messages, help, trades that i copied, etc. I truly appreciate every single thing. I read all postings. This thread is my fave nighttime reading after i finish playing online games. In the morning, it's the TSLA ticker (of course), then maxpain, then Papafox, then this thread again. Always in that order. Some postings i print. Some i am still reading again up to now and STILL don't get it (ie LEAPS and timing it). I finally understand theta now... still working on what in the world has a strike price's vega got to do with anything.
If i have to give an anniversary speech and not be a drama queen, here's the #1 lesson i learned the most from experience: DO. NOT. BE. GREEDY. But what does it mean exactly?
When opening a position, don't let the credit determine if it's a go. The first priority is to make sure the strategy/position will give a very high probability of success. Then, get the credit, whatever amount it is. Too low? Suck it up. Does it matter? It pays the bills and you're doing this the next 30 years anyway. Nobody wants a loss... to avoid it, don't chase better premiums coz they come with higher risks. Slow and steady cash building up week after week is the key to surviving one year. Ask me, i know!
THAT IS ADVICE! YES! FOR REAL! (sorry for yelling)
Feels great to hear about the progress and the 1M in 2-weeks.
That said, you put $2M at risk there, were you comfortable with that position, timing while the SP was doing what it did during that time?
Did you have a high conviction that the SP will at least temporarily recover this week, or was it confidence in rolling, perhaps with 12/9 in mind?
Also, can you share/remind when exactly you placed that trade?
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TheTalkingMule
Distributed Energy Enthusiast
It just dawned on me I haven't even browsed the 1/21 call options for leverage going into 4Q earnings. You people have ruined me.
1/21 is the leaps series, and likely to be a bit weak into expiry as that expiring volume is absorbed. I had a short Jan / long Feb calendar play in decent size, but exited as we started this drop.
Might re-enter on weakness or an IV drop.
TheTalkingMule
Distributed Energy Enthusiast
Only leverage I'm going with is Jan 2023 LEAPs if we have any considerable dip from now til earnings.
While we're on the subject of LEAPs.....I sold covered calls just after the S&P inclusion that I've rolled up and now would like to erase. They're Jan 2024 $1400c and I'm totally fine rolling them out and up a bit or then letting them execute. What I really want back is the ability to sell weekly calls against those shares that are tied up.
I want to sell CC's rather than call spreads because once we go over $1300 I'm ready to liquidate and just trade far OTM options. I think I could get back in at $1300-1500 well down the line on a macro downturn.
My solution is to wait until the next big macro correction and buy calls $100 below to create spreads. Is that the most logical way to free up those shares? I'm in no hurry, a decent dip(maybe testing $1000) over the summer/fall would be fine.
While we're on the subject of LEAPs.....I sold covered calls just after the S&P inclusion that I've rolled up and now would like to erase. They're Jan 2024 $1400c and I'm totally fine rolling them out and up a bit or then letting them execute. What I really want back is the ability to sell weekly calls against those shares that are tied up.
I want to sell CC's rather than call spreads because once we go over $1300 I'm ready to liquidate and just trade far OTM options. I think I could get back in at $1300-1500 well down the line on a macro downturn.
My solution is to wait until the next big macro correction and buy calls $100 below to create spreads. Is that the most logical way to free up those shares? I'm in no hurry, a decent dip(maybe testing $1000) over the summer/fall would be fine.
If you can wait a bit, I'll be looking to sell, ooooh Feb c1300/1350's, depending on the end of year action - looking to harvest monthly theta against my 65x LEAPS
I also have a rather spiffy bridge at a very attractive price, if you're interested, nudge nudge, wink wink, say no more!
Perhaps this helps you:
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I had similar leaps though they were down to ~1 year to expiration. My solution was a combination of selling the shares they were covering, buying back the calls, buying replacement shares by way of long dated calls (June 2022 600s), and then selling weekly calls if/when I feel like it.
This only worked because I had actual shares backing those far out short calls. I also got that done just in time - about a month later was when we went on this tear from the mid/upper 700s to where we're at now. I also managed to roughly break even on the covered calls when I bought them out - that wasn't a consideration in the choice of when to swap things out this way, but it was a nice side benefit.
In short - I bit the bullet and paid the piper / bought out those covering calls with a long time to go to expiration.
I'd like to put the BPS income to good use by buying a single CC about 8 months or more out, similar to how you described @adiggs , then sell near expiry calls , weekly. When would I want to be closer to .70 than .80 delta? Why wouldn't I want a .90 delta, for instance?
He was supposed to tell me when he was doing this.
Pretty low volume to absorb a tranche today, but absorb it did. I bought a few.
Pretty low volume to absorb a tranche today, but absorb it did. I bought a few.
Nevermind, I found this post from Sunday at 4:22 - it answers most all. Thanks!
Wiki - Selling TSLA Options - Be the House
Do you all think “the market” has any clue there’s a fuss about 12/9? Big picture, that seems to me to be more of a nutty-insider thing. I would have though high IV for 12/10 is more likely because we all expect good news coming (factories, deliveries, Q4 margins) yet with the new Covid...
teslamotorsclub.com
I have an IRA that was all shares. I sold $30k to start selling weekly put spreads, as a modest experiment. I use $50 spreads, so every $5k cash covers one spread. So far I’ve turned the $30k into $56k. It’s a small amount compared to the $2M trade upthread, but it works for me and the percentage return has been pretty good. After another week or two I plan to start diverting some of the cash gains back into shares instead of just increasing the amount at risk for spreads. Though at some point I will need to have a conversation with myself on whether to cash in more shares and embiggen the whole exercise.
I might feel better buying $30k worth of shares, to get my share count more or less back to where it started, then increase the spread count with the gains after that for a while until I double the spread count, then put gains back into shares for a while, and go back and forth a bit like that.
i am EXTREMELY GRATEFUL for this thread and contributors. 30 years ago, i was a penniless immigrant and it was painful to even buy a spoon from the dollar store. But i saved, saved, saved nonstop 10% of my paychq. They all went to mutual funds. After i discovered TSLA, i cashed out everything and went all-in on the stock. When the 5-1 split happened, someone said i should do options coz i had enough to "sell covered calls". Huh? Took me about 4 months to understand the first 3 Beginner videos on optionsalpha. And why name it call/put anyway? That was really intimidating.
Strangely enough, the last 2 weeks were one of the most relaxing in my whole year.Congrats @Yoona ! How were you able to sleep those two weeks?
- Elon was still selling, but it was structured and it seemed no one was panicking anymore; in fact, chart shows SP is on uptrend
- Very strong support on 1060
- I had +theta overall, so account was making $ as the days dragged on
- So, yes, beauty sleep was very fabulous
BCS was 1450-1500, then 1300-1350, then 1250-1300. Closed today.
There was very strong support on 1060, so i wasn't that afraid. Another thing is that my -p premium was very high at 72, so the position was net positive from day 1. P/L was hovering within 70-80%. Any sign of trouble and i can quickly exit with profit. That was the backup plan.
As for stress level, 2 things really, really, really helped me.
- Going all cash was a tremendous positive change in my trading life - no margin headache and less fearful of SP swings.
- Most importantly, i gained high confidence on escape mechanisms: roll, roll-flip, split-flip, etc. I even recently did a "half-baked wheel roll-split split-flip" - i am typing up the results...
same time, if i am lazy
best if separate
Yoona, around what share price when you opened your BPS & how you decide 1060 was a strong support 2 weeks ago? 2 weeks ago the share price dropped to 980 and then up gradually that week.
Really amazed about your work and how you save that BCS during then hertz thing
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