Wiki Selling TSLA Options - Be the House

[wooter]

There is now this sick joke going on in my IBKR portfolio that if you subtract the action on my TSLA shares, I'm break-even between the jan14 2x1100/980bps, the jan14 3x1200/1400bcs and a bunch of 800p's I bought to relax my margin requirements and are now bright green.

 

[ABC2D]

This is a head scratcher.

yeah, not liking it one bit

 

[BornToFly]

Do traders really want to go into the weekend selling their TSLA shares instead of owning them? Climb to close today?

 

[M3Rider]

It’s nice when you have profits to clip

I just moved today my 1/7 100-wide bps with 1050 short legs to 1/14 -1020 and 1/28 -1000 with minimal credits.

Surviving mode…hate it. Bought some calls too.
1/28/22 1100c
1/20/23 1000c

 

[CHGolferJim]

Had to...

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Interesting to see how 6-week 4% ITM performs versus 4-month 15% OTM (mine).

 

[vikings123]

Had to...

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Haha Nice, I bought some too at a slightly better price

Interesting to see how 6-week 4% ITM performs versus 4-month 15% OTM (mine).

Yeah I prefer to go slightly ITM instead of OTM. I also think the market will continue to be volatile so booking profits becomes even more paramount with your BPS/BCS positions.

 

[CHGolferJim]

Haha Nice, I bought some too at a slightly better price

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Yeah I prefer to go slightly ITM instead of OTM. I also think the market will continue to be volatile so booking profits becomes even more paramount with your BPS/BCS positions.

I had some LEAPs last fall where value gain accelerated as SP rose to put them ITM, so I’m playing that angle. Always looking to learn new tricks though.

 

[stealthyc]

I had some LEAPs last fall where value gain accelerated as SP rose to put them ITM, so I’m playing that angle. Always looking to learn new tricks though.

That is how OTM options work, as the delta (price change per dollar of underlying) starts off low. It increases as it approaches ITM (and continues to increase as it goes DITM until it's ~1)

 

[ReddyLeaf]

Surviving mode…hate it. Bought some calls too.
1/28/22 1100c
1/20/23 1000c

I’m trying to NOT rage buy too early, which has been my m.o. in the past. Bought some 1/14 c1140s at $5.49 & c1145s at $5.00 right before the close. Unfortunately, also bought a few earlier for $7.40 & $6.61. Hoping for a Monday rebound. Edit: Looking out a month, the 100d SMA might intersect with the $938 gap. Keep your powder dry.

 

[M3Rider]

I’m trying to NOT rage buy too early, which has been my m.o. in the past. Bought some 1/14 c1140s at $5.49 & c1145s at $5.00 right before the close. Unfortunately, also bought a few earlier for $7.40 & $6.61. Hoping for a Monday rebound.

If this is related to 1/21 like Papafox said, the pressure might continue. It’s sad they can manipulate SP that easily, but it is what it is.

I only bought a small number of Cs for after ER(which is after 1/21) and might add more. Will replace some shares with 2023 calls if we go lower.

Short term…not sure what they can do…I have some June calls too bought before 20x…Can they keep SP low until then too?
Whatever. I will be exercising mine.

Also wondering, when TSLA gets the investment grade in Q1, will MMs still be able to amplify down moves 5x?
Crazy stuff, but we know how this will end long term.

 

[wooter]

Have a nice weekend everyone! Monday morning dip and rebound! And then it's all downhill from there.

 

[generalenthu]

Next week mid is likely when the earnings date will be put out in a press release. I suppose we will be in these opex doldrums till then at least.

It's sort of crazy that we averaged about 30 million this week. That's sort of the benchmark volume for an Elon sale day in December.

 

[OrthoSurg]

Bought my first call contract in my life at the end of the day.

BTO 20/5/2022 1200C for $95

 

[Boomer19]

the thread has been interesting. while i actively trade options i’ve never executed spreads before. i’ve had adiggs and BTF answer a few questions via pm recently - thanks.

technically, i put a jan21 spread on of
800/900p for $10.50 per contract over the last two days.

i didn’t use spread-trader and i know you’re supposed to execute them in tandem but…

just taking the forums temperature…
yay or nay?

 

[vikings123]

I had some LEAPs last fall where value gain accelerated as SP rose to put them ITM, so I’m playing that angle. Always looking to learn new tricks though.

I will usually sell a OTM call(on a green day) and turn it into a spread to reduce some risk. For example I might sell a 1300 Feb 18 call against the 1000 Feb 18 call if the SP goes up next week like I expect it to. ITM calls are lower risk/reward for obvious reasons.

I'm not a big fan of OTM calls in general especially with Tesla's current market cap. I would much rather sell OTM calls. That said I cannot help myself sometimes and go for a gamble or two

 

[vikings123]

the thread has been interesting. while i actively trade options i’ve never executed spreads before. i’ve had adiggs and BTF answer a few questions via pm recently - thanks.

technically, i put a jan21 spread on of
800/900p for $10.50 per contract over the last two days.

i didn’t use spread-trader and i know you’re supposed to execute them in tandem but…

just taking the forums temperature…
yay or nay?

Assuming this is a bull put spread(-900/+800) I think it looks good to me. Yes we usually open both positions as part of a spread usually 15-20% OTM with the higher strike.

I don't think you are supposed to execute them in tandem though. But then again you are trying to time the market if you try to open them at different times. I'm sure there are others on here who do that for Iron Condor(Bull Put Spread and Bear Call Spread Combination) or even a regular BPS.

 

[Boomer19]

Bought my first call contract in my life at the end of the day.
BTO 20/5/2022 1200C for $95

since we’re allowed to talk about ST trading here, i also threw on a bunch of apr1225c’s the last two days.

i’ve had a single lonely jan241000c that was more of a day/week trade but i got attached to it like a stray that wandered into the yard.

ive been buying and selling chunks of stock since ~nov. that wasn’t that fun, yet i did incredibly well, relatively speaking. i only booked one loss (-4k) during that period but increased my cash ~33%

the obv problem with that strategy is the amount of capital it ties up. and soon i will have to devote just about all of my “free cash” to another project. so….despite the buy and hold mantra of the other thread…well that just doesn’t work for every single persons scenarios.
i have limited time with a chunk of cash and i’ve been using to leverage more gains for myself. had i only bought and held shares once during that time i wouldn’t have had the same results.

that said…i do adhere to those guidelines for my portfolio. currently all my stock is LT low cost and i don’t touch that. but i did use margin a handful of times for the buying and selling spree.
nor do i touch the DITM leaps for jan/mar23 (similar to ones that p-fox explained about why the max pain is 740 for this jan).
the goal with all the short term trading was/is to pay for exercising the DITM stuff and holding them long term.

at the point i start funneling capital to project B, project A’s strategy then must change. hence this thread and the interest. (i likely won’t be doing hundreds of contracts spread trades once project B starts - if you know what i mean).

for now, these are the plans… (unless j-pow forces me to go full chipmunk and hoard nuts)

 

[MikeC]

Rolled 10x -p1050/850p to 1/14 10x-p1000/800. I had already sold 10x 1/14 10x-p1000/800 earlier this week but greedily didn't close out this weeks, so now am sitting on twice the amount I wanted for next week and near the money, too. Also had to roll a couple naked -p1100 to -p1090 for next week after waiting until the end of the day. Still pretty confident there's a floor heading into ER so also bought a couple 1/14 1150c.

 

[OrthoSurg]

Rolled 10x -p1050/850p to 1/14 10x-p1000/800. I had already sold 10x 1/14 10x-p1000/800 earlier this week but greedily didn't close out this weeks, so now am sitting on twice the amount I wanted for next week and near the money, too. Also had to roll a couple naked -p1100 to -p1090 for next week after waiting until the end of the day. Still pretty confident there's a floor heading into ER so also bought a couple 1/14 1150c.

I am trying to figure out what the floor is after reading Papafox 21/1 maxpain post of 700. I don’t think my Puts want to be rolled to the basement.

 

[BornToFly]

Playing with some numbers. Still have 600X 850/1050 BPS for 1/14. I can roll all of them to 1/28 and pocket $1.2M. Or I buy them all back and sell 400X 1/28 850/1050 for a small debit, and then open 200X completely new positions like 750/950 for 1/28 for about $600k. So I roll 1/3 of them down for 1/2 the profit. Would seem like a no brainer to take the safe option except I'm pretty darn confident we are over 1050 in 2 weeks and I hate to lose out on $600k....