What was the expiration date on these, if you don’t mind me asking? Sorry if I missed it earlier.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
expiration tomorrow.
This was not an intentional ITM spread.. more like a result of some bad position management after Elon started selling, and too much hope for rising sp, too aggressive trades, too much risk.. too much greed. And too many successful trades with no big losses for the past 6 months.
I began to believe that I'm so good at managing that I can get out of anything.. well that's really not true.
Otoh this was not such a bad outcome, because a stock rally is in the looks.. also my cost basis is around $50 split-adjusted, so even 500 at 1250 doesn't bring that up too much.. I was planning to have more cash in the account, well now I don't, but maybe not such a bad thing.
Time to sell aggressive covered calls then
Edit: couple years from now, shares at 1250 are gonna look real cheap.. only worrying thing is going into next year with a negative cash balance.
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TheTalkingMule
Distributed Energy Enthusiast
Anyone else having issues with Fidelity? Mobile app is updating, but I don't get quotes on my laptop and therefore have to put in spread closing trades manually. Been like this since about 9:15.
Yeah, the positions are showing yesterday's values on my desktop. Annoying.
scubastevo80
Member
#donefortheyear ...maybe. We closed all 3 of our BPS this morning which were up over 70%. As it sits now, we've made just over $9k (on ~$31k cash) since trading began 11/1 (~27% return in two months) and hold 5 TSLA shares at a cost basis of ~$905. Extremely happy with the result, learned quite a bit including the correlation between premium/strike and personal anxiety, and will likely take the last few days of the year to plan for 2022. Still thinking about trading some weekly premium for more shares/LEAPs, but need to model different setups through 2022.
Happy holidays everyone - wishing you all health and TSLA related prosperity now and into the new year!
Happy holidays everyone - wishing you all health and TSLA related prosperity now and into the new year!
This recent dip (-$340) confirmed for me and my spouse that even with being 15%-20% OTM that cash secured / naked puts are where we want to be for a number of reasons. For us, we have always added to our position when we have this massive dips so worst case scenario we get assigned more shares that we will HODL.
When this massive dip started I had a bunch of puts at 950 that expired on 12/10 originally. In retrospect, I should have never rolled them since we never got below $978 but since then I have been able to manage them down to 890 pretty easily while maintaining our weekly income target. It has taught me how to manage a once in a year position since this isnt the first or last time for a $300+ dip. It is TSLA after all! I look at this whole 10% Elon sale as learning on the job and I have NOT lost much if any sleep over it.
To the early exercise post earlier, during the S&P 500 run up we bought a bunch of call options for January 2021 at like $560 a share. I called our broker on January 2nd and had them exercise them early (it was a giant PITA), but we were so far ITM I wanted to pull forward our long term tax date as far as possible. They put up a fight about how much time value was still left, but I was insistent and they did it for me early. So there are many reasons people might want to exercise early IMO.
When this massive dip started I had a bunch of puts at 950 that expired on 12/10 originally. In retrospect, I should have never rolled them since we never got below $978 but since then I have been able to manage them down to 890 pretty easily while maintaining our weekly income target. It has taught me how to manage a once in a year position since this isnt the first or last time for a $300+ dip. It is TSLA after all! I look at this whole 10% Elon sale as learning on the job and I have NOT lost much if any sleep over it.
To the early exercise post earlier, during the S&P 500 run up we bought a bunch of call options for January 2021 at like $560 a share. I called our broker on January 2nd and had them exercise them early (it was a giant PITA), but we were so far ITM I wanted to pull forward our long term tax date as far as possible. They put up a fight about how much time value was still left, but I was insistent and they did it for me early. So there are many reasons people might want to exercise early IMO.
bkp_duke
Well-Known Member
They are aware of the problems. Website works, but mobile and Active Trader Pro are missing lots of data. No ETA to resolution.
I hope the options experts here can sanity check my ideas and assumptions. I've got quite a lot of Tesla shares, enough that Norways 1% wealth tax is eating hard into my spending money from my regular job and regular income.
At the same time Norwegian tax laws will tax any earnings with about 35% and after the FIFO principle. The result of this is my earnings are locked in and unless I sell my shares and then spend 65% of that on fun stuff the shares are only a liability and not an asset for practical purposes.
So my idea is that I start selling covered calls. I'm in the process of transfering 500 shares to Interactive Brokers from my Norwegian broker. No Norwegian broker AFAIK lets you sell american style covered calls, so I had to set up an account with a US broker.
I "need" to generate around 1% of my assets in yearly income to help me pay my tax bill, but at the same time I'd rather not sell until 2023-2024 ish when we might use part of this money for a house upgrade. So looking at covered calls it seems to me I can generate a small income with weekly/biweekly calls with strikes around 20% above the current TSLA stock price.
I'm fairly new to this so probably start conservative with just 1 or 2 calls and maybe start at 25% OTM.
If my shares gets called away that is of course not a big problem, but I will then get a tax bill around $35 000 next year and my income can't cover that so that means those 100 shares stays sold. So I'd rather roll or buy back any call that goes against me before they force me to sell the shares.
Does this sound like a decent strategy, any risks I haven't considered?
At the same time Norwegian tax laws will tax any earnings with about 35% and after the FIFO principle. The result of this is my earnings are locked in and unless I sell my shares and then spend 65% of that on fun stuff the shares are only a liability and not an asset for practical purposes.
So my idea is that I start selling covered calls. I'm in the process of transfering 500 shares to Interactive Brokers from my Norwegian broker. No Norwegian broker AFAIK lets you sell american style covered calls, so I had to set up an account with a US broker.
I "need" to generate around 1% of my assets in yearly income to help me pay my tax bill, but at the same time I'd rather not sell until 2023-2024 ish when we might use part of this money for a house upgrade. So looking at covered calls it seems to me I can generate a small income with weekly/biweekly calls with strikes around 20% above the current TSLA stock price.
I'm fairly new to this so probably start conservative with just 1 or 2 calls and maybe start at 25% OTM.
If my shares gets called away that is of course not a big problem, but I will then get a tax bill around $35 000 next year and my income can't cover that so that means those 100 shares stays sold. So I'd rather roll or buy back any call that goes against me before they force me to sell the shares.
Does this sound like a decent strategy, any risks I haven't considered?
1% per year is very easy to do with very safe naked Puts if you can back those with Margin. Look at an options chain. Will selling something like 600 strike Puts for Jan 2023 do it? Adjust a little and report back.
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I'm not surprised that a Put that far ITM was assigned with one day left. I rolled my -1200 for 12/31 on 12/17 for end of January. You have to roll deep ITM options early to avoid assignment. Going one month out usually gives good premium every month.
The only time I ever got assigned was also with a DITM put 2DTE. Gotta roll them early for sure.
I don't believe I have that kind of margin available and I definately don't have that kind of cash. Hence why I'm starting my option experience in something that seems to be very conservative.
A secondary benefit of my original idea was that I get actual experience with options while the stakes are fairly low. Or so I think?
newbie question... does anyone know why there is a need for the SP to eventually visit that range untouched by market hours? is that a technical analysis thing? we were already at those prices during Hertz.
knowing the reason adds to risk assessment (ie never open future BPS higher than -p935 unless SP touched 940 first)
TIA!
I failed to do the logical thing yesterday and buy back around $400k worth of my DITM BPS (mostly 1000/1060) to trim the positions and instead rolled them to next week. I'm now feeling much more optimistic with these BPS as I can see them getting into free roll territory before long. I also don't regret rolling yesterday instead of a cheaper roll today, as there's a high probability some would have be exercised overnight.
I also sold 50 x 800/880 BPS early yesterday to help with the roll costs and now find these sitting at 85% profit. So I'm slowly starting to see the end of this tunnel.
I also sold 50 x 800/880 BPS early yesterday to help with the roll costs and now find these sitting at 85% profit. So I'm slowly starting to see the end of this tunnel.
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bkp_duke
Well-Known Member
newbie . . . he he, you are so coy.
Are you allowed to use that moniker after making 1m+ on an executed options strategy?
Asking for a friend.
There is no real reason, and gaps don't always get filled, but TA folks think they should so there can be some self-fulfilling prophecy perhaps. No inherent market forces should cause it to happen.
I have several BPS/puts open that are doing great, but I'm wondering if anyone bought calls? I thought about it yesterday, was mainly going to just buy some more LEAPs if we went close to $850.
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