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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Well. At least my 5x Jan21 1200/1300bcs are looking green now.
Closed both tranches of these at $2.45 (-89% on the day) via a 2pm limit order for a net gain of +82%. Did not anticipate such an SP collapse at the end of the day, and was expecting a rebound tomorrow threatening $1100. Maybe needn't have worried, but on to the next tilt!
Yes. But since we're selling, it's highly unlikely you'll see Bear Put Spreads or Bull Call SpreadsI've noticed you all use bps and bcs a lot. Have any of you thought about how B could stand for bull or bear
Yeah, that's why I need to check which thread I'm in...I've noticed you all use bps and bcs a lot. Have any of you thought about how B could stand for bull or bear
All about the credit spreads in here.
My point is that the b is adding nothing to the post. You have to assume what you said or read the rest of the context to know if its bull or bear. This thread could use CDS (call debit spread), CCS (call credit spread), PDS (put debit spread), PCS (put credit spread) if we wanted to provide quicker clarity.Yes. But since we're selling, it's highly unlikely you'll see Bear Put Spreads or Bull Call Spreads
IBKR's margin is still magic to me. One time you're swimming in an abundance of margin, 2 days later at -50 everything's flashing red. The handicap of having liquidity parked in TSLA instead of cash.
Anyway, IBKR nanny came knocking again at around 1060 and it nicely put my Jan21 1050/980bcs for sale which was still green. OK, Would have been smarter if I did take my profits on top of the hill this morning, but hindsight 20/20, right.
Then I also noticed my Jan21 1100/980bcs which were still green, but SP crossed 1040, so closed them. I didn't like having that 1100 for next week anyway.
I didn't touch my Jan28 1000/930bps, nor my 5x Jan21 1200/1300bcs. I will close the bcs though once we go up again, taking profits. I don't trust anything between 1000 and above at this moment. Even sub 1000 is starting to look weird.
But having no bps set up for Jan21, I decided on a Jan21 1000/900bps.
Edit: a word
Anyway, IBKR nanny came knocking again at around 1060 and it nicely put my Jan21 1050/980bcs for sale which was still green. OK, Would have been smarter if I did take my profits on top of the hill this morning, but hindsight 20/20, right.
Then I also noticed my Jan21 1100/980bcs which were still green, but SP crossed 1040, so closed them. I didn't like having that 1100 for next week anyway.
I didn't touch my Jan28 1000/930bps, nor my 5x Jan21 1200/1300bcs. I will close the bcs though once we go up again, taking profits. I don't trust anything between 1000 and above at this moment. Even sub 1000 is starting to look weird.
But having no bps set up for Jan21, I decided on a Jan21 1000/900bps.
Edit: a word
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I'm just doing what everybody else does. Before I tripped over my fingers typing -1000p/+900p.My point is that the b is adding nothing to the post. You have to assume what you said or read the rest of the context to know if its bull or bear. This thread could use CDS (call debit spread), CCS (call credit spread), PDS (put debit spread), PCS (put credit spread) if we wanted to provide quicker clarity.
scubastevo80
Member
Ugh - another big down day. For anyone that's interested, I just checked the daily volatility in TSLA over the past three months - 19% of the days have closed down more than 3%, 23% of the days we've closed up more than 3%, and 58% of the days we've closed between +/-3%. We've had (8) 5%+ down days and (6) 5%+ up days. There was one period of (4) consecutive down days where we lost 14.5% (Jan 4-7).
What's this all mean? If we're writing more than 15% OTM, we should be fine unless there's a further mass exodus from growth/tech/TSLA that wreaks havoc.
What's this all mean? If we're writing more than 15% OTM, we should be fine unless there's a further mass exodus from growth/tech/TSLA that wreaks havoc.
And THAT is a close right on the 50 EMA. Quite the ride today, though seems like key support levels actually held on the TSLA chart. Looking forward to seeing what tomorrow brings.
Actions of the day:
Actions of the day:
- Clipped 170x 1050 1/14 BPS at 85% on the rally this morning;
- STO 170x 950/-1000 -1350/1400 IC 1/21;
- Clipped 170x 1350/1400 BCS 1/21 @ 50% intraday; i'll look to re-sell BCS if we get another good rally tomorrow or early next week;
- Rolled 36x 1200/1135 1/14 BPS to 36x 1170/1080 BPS 1/21 - this now returns my max loss on these BPS to approximately what it was when they were 12x 1050/775 04/2022 BPS; reminder that these started a flip roll from DITM 800 CCs and that I had rolled these back to 1/7 last week hoping the P&D rally would sustain and get me out of the position faster. That hasn't panned out, so I'll be rolling these through earnings and will then decide from there;
- I also STO 1380 cc/lccs yesterday which are now at 40%; may clip them tomorrow depending on follow through, but likely will wait until next week to do anything with those;
My way green calls are nearly red today.
Exp 2/18 @$1k
HODL
My BPSs are still way green though...
Exp 2/18 950/700
We are at a support level again so will be watching closely tomorrow. Macros tanked us today (supreme court covid rule maybe?)and my news feed had extra FUD...what a world we live in!
Exp 2/18 @$1k
HODL
My BPSs are still way green though...
Exp 2/18 950/700
We are at a support level again so will be watching closely tomorrow. Macros tanked us today (supreme court covid rule maybe?)and my news feed had extra FUD...what a world we live in!
15% out of the money as long as there are no more than three trading days involved? So STO on Tuesday close at least 15% OTM for Friday expiration or risk evisceration?
That is some crazy volatility.
Sold some small BPS for 01/21 at 1060 at -850 / +760 and -800 / +700 and am wondering about them now.
Did it through IBKR and used 2.5 million in margin even though I sold 10 at 850 and 30 at 800. Was being conservative, I thought. IBKR does not agree.
scubastevo80
Member
I'll spend some more time slicing and dicing the data, but you could go out more than 3 days for the 15% figure. The 4 down days in early January were preceded by an up day of 4.5% and followed by an up day of 5.8%. When I look at rolling 5-10 day periods, it looks like it would be hard to lose money unless timing was absolutely terrible before an intraday reversal. So unless you wrote 1/14 BPS at the close on 1/3 and we close down 3% tomorrow, the 15% OTM with keep you, in fact, out of the money on expiration date.
Ultimately, we're trying to fine tune our strategy, so was wondering if 20% is too conservative writing BPS on a down day between 5-10 DTE.
I closed my +85% 20x 14/1 1255 CCs this morning and Sold 20x 21/1 1310 CCs around 10AM. The only green thing in my portfolio. I was expecting a rebound and green days heading to earnings. In hindsight I would have sold 900 CCs. (Just kidding)
This volatility is insane.
This volatility is insane.
It’s like the secret handshake to get into a group. The B is the secret.I've noticed you all use bps and bcs a lot. Have any of you thought about how B could stand for bull or bear
I've been gone all day. Return to find TSLA down and F up, with articles talking about how Cybertruck is cancelled/delayed because the Tesla website no longer has pricing or delivery dates, or something. And because we are two weeks from earnings, I guess Elon can't say anything on twitter to correct the FUD. Nice. The crooks win again I guess.
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