I was really excited until the last part. No idea what that means....
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
TOS = Think or Swim. You can get an API key here: TD Ameritrade for developer | APIsI was really excited until the last part. No idea what that means....
I guess you weren't playing this game back in May? This is nothing by comparison, at least not yet!
Good thing is that experience from then puts one in good stead for now, and what is that learning?
Assignment's just another word for got a bunch more shares...
Premiums keep adding up until they're free
-not Janus Joplin
Found the wrong week to reverse roll my 12/10 ~930s to 12/3 ~1040s. Had to roll them back to 12/10 ~950s for a small credit. These are all the short legs of a bunch of BPS. No harm no foul, and I I am giving myself a NiceTry for that attempt to shed the BPS quicker. 
Anyways, I did think about going out a week or 2 like several here are doing, but my main concern is with the macro. QQQ / NDX are still in a negative gamma territory where downside vol can feed on itself. I have shifted a bit into capital preservation mode rolling for strike improvement and not necessarily the best returns.
While the premiums are appealing, rolling out for time reduces the management flexibility. So decided to just sit on 950s for next week until that strike is threatened (if it does). Unlike @adiggs I am rolling by wide bps as soon as my short strike is threatened and not waiting till it goes ITM. Just a bit less risk / reward as these are margin backed BPS.
I do think the time is getting ripe to roll up the DITM strikes (at 300) and add more contracts in our IRA.
GLTA.
Anyways, I did think about going out a week or 2 like several here are doing, but my main concern is with the macro. QQQ / NDX are still in a negative gamma territory where downside vol can feed on itself. I have shifted a bit into capital preservation mode rolling for strike improvement and not necessarily the best returns.
While the premiums are appealing, rolling out for time reduces the management flexibility. So decided to just sit on 950s for next week until that strike is threatened (if it does). Unlike @adiggs I am rolling by wide bps as soon as my short strike is threatened and not waiting till it goes ITM. Just a bit less risk / reward as these are margin backed BPS.
I do think the time is getting ripe to roll up the DITM strikes (at 300) and add more contracts in our IRA.
GLTA.
Here's a weird one. The 12/10 1500 strike call I sold Wednesday before the 12.4% drop, is worth 22% more today (I'm in the red). It is 131% higher at close today than close yesterday, despite the stock dropping almost 7%. Must mean there is increased demand for calls, which is supposed to mean MM will have to buy shares at some point to hedge - right? 
Hopefully next week brings a nice pop to 1100 or 1200.
Hopefully next week brings a nice pop to 1100 or 1200.
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bkp_duke
Well-Known Member
Here's a weird one. The 1500 strike call I sold Wednesday before the drop, is worth 22% more today (I'm in the red). It is 131% higher at close today than close yesterday, despite the stock dropping almost 7%. Must mean there is increased demand for calls, which is supposed to mean MM will have to buy shares at some point to hedge - right?
Hopefully next week brings a nice pop to 1100 or 1200.
IV was also up considerably since Wed.
Phew. I had -p1000/p900 expiring today and was too cheap to pay $15 bucks to close them out with a minute left when they were $15 OTM. Was a little worried someone might exercise them on me in AH.
I also let a -p1050 exercise today and sold a 12/10 -c1050 to start the wheel. I got $24 for it, which seemed better than rolling down to a ~990 put.
I also let a -p1050 exercise today and sold a 12/10 -c1050 to start the wheel. I got $24 for it, which seemed better than rolling down to a ~990 put.
llirk
Member
Posting my recent activity as I hope it helps some, but I’d also like feedback if I’m missing something in my “strategy”.
I sold 12/17 cc1000 back in October before the recent run and watched as the SP ran but I only gained the difference in delta between the DITM leaps and the CCs, which was less than satisfying to say the least.
So I used the hedge from these CCs to get more aggressive with my BPS and it has worked out rather well. Instead of more conservative 20% OTM strikes, I have been doing mostly 10% OTM strikes, bringing in more premium.
I have only had to roll a couple of BPS positions over the Elon sell phase, but as the SP has declined, I found a new opportunity. The cc1000 that were left for dead just weeks ago, can now be rolled for a decent strike improvement (cc1000 to cc1075 with a $5 premium for Jan 21).
Add in the fact that by rolling these CCs, I’m taking losses to offset BPS gains for 2021 and it’s win win. Of course, I expect the Jan 21 cc1075 to be DITM by expiration, but I’ve seen this movie before and since the positions they are covering are Jan 2023 and Jun 2023 leaps, I see no reason to not rinse and repeat a few more times!
Enjoy the weekend and looking forward to my newly sold CCs to be ITM on Monday.
I sold 12/17 cc1000 back in October before the recent run and watched as the SP ran but I only gained the difference in delta between the DITM leaps and the CCs, which was less than satisfying to say the least.
So I used the hedge from these CCs to get more aggressive with my BPS and it has worked out rather well. Instead of more conservative 20% OTM strikes, I have been doing mostly 10% OTM strikes, bringing in more premium.
I have only had to roll a couple of BPS positions over the Elon sell phase, but as the SP has declined, I found a new opportunity. The cc1000 that were left for dead just weeks ago, can now be rolled for a decent strike improvement (cc1000 to cc1075 with a $5 premium for Jan 21).
Add in the fact that by rolling these CCs, I’m taking losses to offset BPS gains for 2021 and it’s win win. Of course, I expect the Jan 21 cc1075 to be DITM by expiration, but I’ve seen this movie before and since the positions they are covering are Jan 2023 and Jun 2023 leaps, I see no reason to not rinse and repeat a few more times!
Enjoy the weekend and looking forward to my newly sold CCs to be ITM on Monday.
On a pullback like this - if you're still bullish and expecting your next CC to go ITM, and you have the collateral - you might consider flipping the short call to a short put instead.
E.g., BTC 12/17 1000c @ 72 and STO 12/17 1035p @ 72
One nice thing is that the short call lost a lot and the short put gained a lot today. If you had opened this position in the morning, you'd have had to buy the short call back at $121 and sell the short put at $44 (a difference of -$7700 per contract vs. an even trade right now).
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The only problem is margin. If the cc was using LEAPS, and he flip rolls to Puts, now he needs margin/cash for the Puts.
Agreed. I got rid of some of my Hertz CCs by closing one ITM CC/selling 100 shares for the collateral to do a flip roll, but it's in an IRA and I wanted to cash out some for BPS anyway.
Oh I was thinking about rolling today - I very much wasFound the wrong week to reverse roll my 12/10 ~930s to 12/3 ~1040s. Had to roll them back to 12/10 ~950s for a small credit. These are all the short legs of a bunch of BPS. No harm no foul, and I I am giving myself a NiceTry for that attempt to shed the BPS quicker.
Anyways, I did think about going out a week or 2 like several here are doing, but my main concern is with the macro. QQQ / NDX are still in a negative gamma territory where downside vol can feed on itself. I have shifted a bit into capital preservation mode rolling for strike improvement and not necessarily the best returns.
While the premiums are appealing, rolling out for time reduces the management flexibility. So decided to just sit on 950s for next week until that strike is threatened (if it does). Unlike @adiggs I am rolling by wide bps as soon as my short strike is threatened and not waiting till it goes ITM. Just a bit less risk / reward as these are margin backed BPS.
I do think the time is getting ripe to roll up the DITM strikes (at 300) and add more contracts in our IRA.
GLTA.
But they're already 12/10 puts and I'd be rolling to 12/17 or 12/24 and with a full week of time decay to go, and a belief in a strong upward move really soon now, I'm holding off. The wide spread is making that possible. Finishing at 1015 instead of 1005 is also helpful, but I don't have a lot of room left to maneuver in - I'll be rolling at 975 whatever is going on.
llirk
Member
I may try a flip roll on a smaller amount of contracts, but I like the downside risk protection of the CCs balancing out the risk of the BPS going ITM. This is in a brokerage account, so margin isn't the issue.
For those that have done the flip roll, how did it work out? While I'm bullish longer term, anything can happen short term, which is why I like my current hedging strategy.
Short calls to short puts was going well...until the last couple of days. Maybe that's why a flip roll looks like such a good deal to me right now.
I agree about balancing CCs and put spreads so that you can profit in either direction. I flipped about half my 1/22 CCs to puts so I'd have opportunity in either direction. So now if the SP moves back up, I should be able to flip one of the puts back to a CC at a significantly higher strike than it originally was.
Yeah, this grasshopper is still in broken wheel-land (flat tire ville?) where I sell puts at strike-premium points where I'd buy the stock anyway (and sell calls to keep them). Though closing them yesterday or even this morning would have been more profitable, the sold calls balanced it out.
Good fortune to your leaps! Picked up some DITM Jan and Jun 23s.
IV goes up hard if so tanks. That is Vega working against you. But that's should overpower it in some days/weeks + IV will stabelizeHere's a weird one. The 12/10 1500 strike call I sold Wednesday before the 12.4% drop, is worth 22% more today (I'm in the red). It is 131% higher at close today than close yesterday, despite the stock dropping almost 7%. Must mean there is increased demand for calls, which is supposed to mean MM will have to buy shares at some point to hedge - right?
Hopefully next week brings a nice pop to 1100 or 1200.
Holy dump in the crypto markets this evening. Hopefully that is not foreshadowing markets on Monday…
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