Wiki Selling TSLA Options - Be the House

[scubastevo80]

After-hours not looking good (down 2.4%) and marching toward $1000 already. All of my BPS except the 1050/960 for 1/28 looking good.

 

[OrthoSurg]

Might BTC my 21/1 1310 CCs this morning as they will already be +50% from yesterday. I don’t know what new strike price to set for next week. Will there be a recovery from macros heading to Earnings? Too much volatility in the markets to predict anything.

Saw 999 pre market before going back over 1000. I wonder what support level will be tested today.

 

[UltradoomY]

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.

We could do those things but we don't wanna......
This is a little club or hive mind and terms and lingo changes (such as LCC - Leap Covered Call) are specific to this thread and not found anywhere else.
Part of page 1 of the thread is why - it states - please read the glossary and info before doing anything.
So the long and short (haha, see what I did there) is that these are our common terms, not the markets and that's what helps us communicate to each other.

There will be a learning curve for newcomers, but we are all here to help "bridge the gap"
Looking forward to seeing you around!
Cheers

 

[Discoducky]

Looks like we bounced in premarket off of $1000, now at $1010. Lower BB is $900, so I hope we don't go there, it would seem if we don't get back to $1080 we could start a bear trend.

I'll be looking to open yet another long call position for 2/18 exp as it is just too good to pass up (assuming IV is high)

(not advice)

 

[wooter]

I'm trying to follow the not advice of... I don't know, I forgot. Anyway, the idea is to open in the direction of the SP and close when the SP is going against you. So I closed my Jan 21 1200/1300bcs which turned nicely green, since I assume we're going up now.

 

[OrthoSurg]

Looks like we bounced in premarket off of $1000, now at $1010. Lower BB is $900, so I hope we don't go there, it would seem if we don't get back to $1080 we could start a bear trend.

I'll be looking to open yet another long call position for 2/18 exp as it is just too good to pass up (assuming IV is high)

(not advice)

I tried to BTC my 21/1 1310 CCs at a 50% profit this morning but the stock bounced off. Not that I will start comparing because I sold more puts than call and I will never complain when I see green. Let’s see how the day goes.

I was supposed to give blood at 11AM however they just called to cancel my appointment because the nurses tested covid. OR canceled, Blood clinic canceled, will have to refresh that stock ticker to feel I am doing something today after coming back from school with the kids for their 2nd Covid shots :X

 

[TheTalkingMule]

The bastards got me. Rolled my 1/21 $104/940 BPS to 1/28 for $8 credit at the open fearing a dive to $970.

 

[euro2012]

The bastards got me. Rolled my 1/21 $104/940 BPS to 1/28 for $8 credit at the open fearing a dive to $970.

While it could have been better timed, its never wrong to make money while improving positions.

 

[FS_FRA]

The bastards got me. Rolled my 1/21 $104/940 BPS to 1/28 for $8 credit at the open fearing a dive to $970.

I was ready for a roll of my 1/21 -970/+770 BPS this morning and then got called into a meeting. Came back and we're green....

Seem like the bastards* are targeting that 1050 call wall today...?

* I vote for a new entry to the wiki

 

[cbh03]

...For 1/14, I have X 800/1100 and 2X 850/1050. The 800/1100 make me a little nervous (hence the wider spread), but I believe that I will be able to roll those for a week or 2, if necessary, and that we will have a close above 1100 on 1/21 or 1/28 once earnings are announced

I held all of my sold BPS through the dip in to the 900's last week as I believed it was temporary (or at least that the SP would move higher before 1/14). I thought about closing some of my positions, all of which were green, on Wednesday when we were over 1100. However, I did not close anything as I believed that the worst was over and we were going to steadily drift higher until earning. Clearly this was wrong and, in hindsight, I should have at least closed the riskier 800/1100 for a little profit and to de-risk.

Instead, I ended up rolling the 1/14 800/1100 to 1/28 750/1050 for a small credit. I am still holding the 1/14 850/1050 with one eye on the ticker today.

 

[tivoboy]

I was ready for a roll of my 1/21 -970/+770 BPS this morning and then got called into a meeting. Came back and we're green....

Seem like the bastards* are targeting that 1050 call wall today...?

View attachment 755609

* I vote for a new entry to the wiki

When we go back down, “legging out” of that 970 might be a nice double play.. I think the 770 is solid.

 

[intelligator]

What's a good strategy if I wanted to "reel in" rolled out BPS spreads with lots of time value left? I got here by rolling down and out from ITM positions last week. I partially met the goal goal to trade for net credit, improve strike, widen spread where possible, but also had to leave some behind for a debit. I'd like to free up margin sooner, where possible, net credit. Just looking for some ideas.

4/14 -950/+700
4/14 -900/+600

 

[ChefBoyardee]

I just converted 160 shares to 3 x 1500 / 2450 and 2 x 1500 / 1950 spreads for Jan 2024.

Based on the math, the spreads should outperform above 1800 ish, and greatly outperform if we hit 50% appreciation per year (2300ish). The thinking is Tesla is growing above 50% per year, and earnings are growing even faster... but due to p/e compression, the stock will rise less than the company's growth, so my target is around 2000.

This freed up about 20k margin, to help with near-term rolls if needed. While I like holding shares, I'm feeling pretty good about this. They'll catch the full ramp of Berlin and Austin

 

[JustMe]

What's a good strategy if I wanted to "reel in" rolled out BPS spreads with lots of time value left? I got here by rolling down and out from ITM positions last week. I partially met the goal goal to trade for net credit, improve strike, widen spread where possible, but also had to leave some behind for a debit. I'd like to free up margin sooner, where possible, net credit. Just looking for some ideas.

4/14 -950/+700
4/14 -900/+600

I’m in a similar position. The way I see it, every day we close above $950, those spreads are making money back that I borrowed from the future. So, as long as I am confident that we’ll stay above $950, waiting is okay from that point of view.

But to answer your question, as others have discussed today, you could try “legging out.” The idea would be to day trade the short leg. There is some risk here, obviously. There are two situations that I have done this successfully. 1: Share price rockets higher and I expect a significant pull back -> buy the short leg and either sell it again at the VWAP or target selling a lower strike ($940) for the same price I got for the $950. 2: Bottom falling out at the open - looking like a brutal red day. Do the same as the above example.

This is a bit tough to make much progress with so much time value left, but 5-10% moves make it possible, if you can pick daily highs and lows.

Another approach would be to roll up the spreads by $50 or something and use the proceeds to buy one of the spreads back to free up margin immediately. This could work if you have a number of spreads and TSLA moves above $1100-1200 and sets a solid new floor there. It’s way too risky to do this now, I think. Look at the delta to evaluate this.

Well, this is my thinking. I’d be glad to hear better or easier escape routes from the options oracles

 

[strago13]

I ended up closing our 1/14 990 Puts earlier this week on the spike to 1106. I then proceeded to reopen a 1/21 position at the same strike price but with less contracts. In retrospect, I should have waited for the ensuing dip and trusted my initial gut feeling that the run wasnt going to hold. I did open a few more puts today on the morning dip at 950. So I am holding:

1/21 950 Puts
1/21 990 Puts

In the past 4 months of writing puts, I have added 11% additional shares to our core HODL position courtesy of being The House. Thank you all so much for all that the information you provide. This has been an amazing journey so far!

 

[ReddyLeaf]

Today is one of those days that I wish I could trade premarket. Sub-1000. oh well, bought one share (market order) at open, but all my others (890s-960s) are still awaiting the next stupid push down. I’ve finally built up enough free cash to feel comfortable (still only 1-2% of the value of each IRA account) to purchase more shares, but only at discounted prices. Still waiting to fill that $938-$958 gap.

My 1/14 -c1205s closed out for $0.01 this AM, so went ahead and did something pretty stupid, resold -c1055s 1/14 for $1.50-$1.60 (mid-Bollinger band at 1053). Just grocery money really, but stupid risky unless the MMs are really targeting sub-$1050 today. Anyway, if this trade goes bad, I have decided to buy 2x January 2023 +c700s with the proceeds, which will be my first DITM LEAPS purchase. I’m not really sure what to wish for, but either outcome is good.

 

[cbh03]

I held all of my sold BPS through the dip in to the 900's last week as I believed it was temporary (or at least that the SP would move higher before 1/14). I thought about closing some of my positions, all of which were green, on Wednesday when we were over 1100. However, I did not close anything as I believed that the worst was over and we were going to steadily drift higher until earning. Clearly this was wrong and, in hindsight, I should have at least closed the riskier 800/1100 for a little profit and to de-risk.

Instead, I ended up rolling the 1/14 800/1100 to 1/28 750/1050 for a small credit. I am still holding the 1/14 850/1050 with one eye on the ticker today.

I ended up rolling my 1/14 850/1050 to 1/21 800/1000 around noon when the SP was slightly above $1040. I was able to improve the strike by $50 and decrease the number of open contracts by 20%, and I still got a small credit (adiggs, I hope you are proud ). With the freed up margin, I can sell more BPS if we have a further drop next week.

 

[Bunky]

Was planning to roll my -1030/+930s or have them expire worthless but obviously waited too long because Fidelity just liquidated the short leg on my behalf. Wtf.

 

[EVCollies]

Nabbed a few more 1/28 -p990/+p790 @32 and used the low SP to move my remaining TSLA from IRA to Roth.

Hope the BPS machine will continue to generate $ for that tax bill 4/15/23 with the Roth conversion...

 

[Tyler34]

Was planning to roll my -1030/+930s or have them expire worthless but obviously waited too long because Fidelity just liquidated the short leg on my behalf. Wtf.

Was it fidelity or did someone exercise early?