Wiki Selling TSLA Options - Be the House

[Knightshade]

It sure looks like an 'Elon is selling' graph today. My c1245's, c1250's and c1300's for 12/31 don't mind. And the p1025's for 1/7 feel confident enough with P&D and earnings coming up.

Yup- based on looking like elons last sale, and going into P&D weekend, I opened a bunch of -1000/+900 spreads for 12/31... already up 20% in like 10 minutes (I got lucky and hit it almost exactly at the 1080 bottom, ~3/share.)

 

[Yoona]

STO 1/7 -c1350/+c1400 25% OTM

i think this is safe for 10 DTE; anyway, i will BTC it at 50-75% profit

 

[BrownOuttaSpec]

in other news... i am thinking STO 1/14 -p900/+p800 at tomorrow's 10:30am dip

Did you get them this morning?

 

[UltradoomY]

If anyone is feeling like the rocket is about to blast (at least back over $1100) the January 21st -$1090 / +$890 BPS is paying $57 a contract....
Not saying how many I got but I am happy to run into the week before earnings with this Theta decay play.

 

[intelligator]

Yoona said:
in other news... i am thinking STO 1/14 -p900/+p800 at tomorrow's 10:30am dip

Did you get them this morning?

EH, don't know how to quote the entire message... the context is there

I sold some -900+750 for the 14th and -950+800 for the 7th , just about 10:20am or so for 6.25 each

 

[mongo]

I just now sold off all my bitcoin GBTC at a loss, going pure TSLA but need to understand something first... new territory for me. Thanks in advance.

I still have one Call and it's gradually coming back faster than decay, so I might ride it out TBD. Considered buying it at maturity or sell once green (soon I believe). It's a Jan 21 850 strike (paid way too much, still red). So if there's another TSLA correction and I have no cash, margin call time? I'd then have to sell a few shares to cover it, correct? But earning won't be out until after the 21st?

Choices (not options, lol):
1. Keep the option for now, buy more TSLA, but keep enough cash to cover if needed, or
2. Wait until Green and if it grows enough, try to own it by selling a few TSLA shares, or
3. Just dump it now and go all in? No margin worries, less risk of downside.
4. Other?

WWMD (What Would Musk Do?)

I'm confused, is this a purchased (long) call or a sold (written) call?
If purchased, you should be able to sell it and get cash even if it is worth less than you originally paid.

 

[WattsHappening]

If anyone is feeling like the rocket is about to blast (at least back over $1100) the January 21st -$1090 / +$890 BPS is paying $57 a contract....
Not saying how many I got but I am happy to run into the week before earnings with this Theta decay play.

Ok, I've taken my next educational step. Freed up a few dollars for my first BPS. This post by UltradoomY got me looking at January 21, which feels to me like a great learning experience.

Dipping my toes in the water with one Jan 21 -$1050 / +900 BPS for $37.

 

[Yoona]

Did you get them this morning?

oops i forgot

 

[Yoona]

I sold some -900+750 for the 14th and -950+800 for the 7th , just about 10:20am or so for 6.25 each

i am also thinking of staying below -p1000 in Jan

 

[generalenthu]

Ok, I've taken my next educational step. Freed up a few dollars for my first BPS. This post by UltradoomY got me looking at January 21, which feels to me like a great learning experience.

Dipping my toes in the water with one Jan 21 -$1050 / +900 BPS for $37.

That's good premium and short strike. my only reservation for Jan 21st is that's a leaps series with lots of expiring contracts that could induce volatile trading the week prior. It could be good volatility to the upside too, but equal chance it is likely to be bad volatility.

MY preference would be for short puts that are earlier (1/14), and as a tradeoff could choose a slightly higher strike.

 

[scubastevo80]

That's good premium and short strike. my only reservation for Jan 21st is that's a leaps series with lots of expiring contracts that could induce volatile trading the week prior. It could be good volatility to the upside too, but equal chance it is likely to be bad volatility.

MY preference would be for short puts that are earlier (1/14), and as a tradeoff could choose a slightly higher strike.

Too high of a strike for my tastes if macros go in the wrong direction. We're happy to roll BPS down, but starting above $1000 doesn't leave enough cushion given that's less than 5% and we've had multiple 5% days in the past 2 weeks.

If this was the desired trade, maybe consider taking the $1050/$900 1/7 trade for $22 and rolling down a week at a time if this goes against you?

 

[BrownOuttaSpec]

Picked up some BPS 1/7 800/900 @ $2.05 at the end of the day drop. I told myself i was going to sit out until the new year but I can't let you guys have all the fun

 

[SOULPEDL]

I'm confused, is this a purchased (long) call or a sold (written) call?
If purchased, you should be able to sell it and get cash even if it is worth less than you originally paid.

Purchased call, sorry I forgot how many ways to leverage here. I’m leaning toward a clean sell. Maybe it’s going to waste by some views, but the market scares me in general.

What I might do is complete my buying of chairs this week, and if it drops more TD will just sell a few chairs for me.

Thanks everyone for the input!

 

[SOULPEDL]

Anyone consider MMs making it appear as though Elon was selling? Remember, they likely hold his shares and love volatility. Just a thought, maybe a bit paranoid.

I kept that call option btw. But this tied up some cash to cover it. We’ll know soon enough.

 

[Tslynk67]

Anyone consider MMs making it appear as though Elon was selling? Remember, they likely hold his shares and love volatility. Just a thought, maybe a bit paranoid.

I kept that call option btw. But this tied up some cash to cover it. We’ll know soon enough.

Don't understand why you don't sell a strike against it? Free money, man

 

[WattsHappening]

That's good premium and short strike. my only reservation for Jan 21st is that's a leaps series with lots of expiring contracts that could induce volatile trading the week prior. It could be good volatility to the upside too, but equal chance it is likely to be bad volatility.

MY preference would be for short puts that are earlier (1/14), and as a tradeoff could choose a slightly higher strike.

Thanks for these thoughts. Makes sense.

I wanted to see the impact of theta decay over the 3+ weeks until expiration. I guess I'm also expecting a pop over the rest of 2021 and after delivery numbers are released over the weekend.

I was tempted to go with even a higher strike price as, like UntraDoomY, I expect the SP to be trading at >$1100. But decided to be a bit more conservative. This being the first time, I'm hoping to be treated gently followed by lengthy spooning.

 

[MP3Mike]

I kept that call option btw. But this tied up some cash to cover it. We’ll know soon enough.

Bought call options don't tie up any cash. (At least not at any of the brokers I have used.)

 

[mongo]

Bought call options don't tie up any cash. (At least not at any of the brokers I have used.)

Not additional cash, but the cash used to buy it is tied up and less offsetting in terms of margin usage.

 

[SOULPEDL]

Don't understand why you don't sell a strike against it? Free money, man

Mainly bc I haven’t taken the course on page 1 and know only a little about it.
But since seeing this comment, I’ll do some reading. Thx. (Nothings free btw, but since I think SP will rise, and it won’t hurt if wrong…)

So what’s a safe price, like no way it goes below___ ? lower Bollinger Band? Weekly or deeper or leap? By “against it”, you mean keep my existing Option and sell it or use the banks and Open to Sell?

For a newbie, it’s more complicated than it looks. I’m not even certain I’m qualified with TD. But I’m also a curious person

You’re all like my old drug friends, lol. Now I know why my brother lost it all twice now.

Bought call options don't tie up any cash. (At least not at any of the brokers I have used.)

It’s strange on TD. My “Margin avail” is around -50k, same as cash, which is the main reason I stopped buying chairs all in today. Before the close Margin was jumping around -20-27k. It appeared as though they were just stating what I’d need if it expired? Maybe the change has to do with Open Vs Closed market?

 

[Clueless0_0]

1. THE TRANSACTIONS REPORTED ON THIS FORM 4 WERE AUTOMATICALLY EFFECTED PURSUANT TO A RULE 10B5-1 TRADING PLAN PREVIOUSLY ADOPTED ON SEPTEMBER 14, 2021 AND ESTABLISHED BY THE REPORTING PERSON FOR THE PURPOSE OF AN ORDERLY SALE OF SHARES RELATED TO THE EXERCISES OF OPTIONS SCHEDULED TO EXPIRE IN 2022. THIS RULE 10B5-1 TRADING PLAN WAS COMPLETED ON DECEMBER 28, 2021.

All done for this 10b5

Quoted from main thread, Elon is all done for 10b5! What a great news!