Brutal open
Rolled my 1/28 -910/+710 to 2/4 -900/+700 for $2
Hate this week already.
Rolled my 1/28 -910/+710 to 2/4 -900/+700 for $2
Hate this week already.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
bkp_duke
Well-Known Member
Well, all my BPS are at max loss right now.
In that position, no need to rush to roll. I'm going to hold until Thursday AM to see what happens Wed with the Fed and TSLA earnings/guidance.
Good luck to all! Hopefully we weather this storm quickly.
In that position, no need to rush to roll. I'm going to hold until Thursday AM to see what happens Wed with the Fed and TSLA earnings/guidance.
Good luck to all! Hopefully we weather this storm quickly.
mickificki
Member
rolled my 2/11 900/800 BPS to 880/780, 2/18...it's already under $860 lol. I'm gonna puke.
as @adiggs alluded to, not only gonna have to pay taxes on 2021, but if my options go to max loss that I'm using on margin, what happens then? They liquidate my shares to pay for that, then on top of that I'm paying taxes on those shares?
holy moly....
as @adiggs alluded to, not only gonna have to pay taxes on 2021, but if my options go to max loss that I'm using on margin, what happens then? They liquidate my shares to pay for that, then on top of that I'm paying taxes on those shares?
holy moly....
corduroy
Active Member
Rolled my 1/28 -900/800 to 2/4 875/780 for a small credit. Also STO a couple 1/28 -730/630 for $6.
Hang in there everyone. Let's hope that $852 was the bottom.
Hang in there everyone. Let's hope that $852 was the bottom.
Knightshade
Well-Known Member
If you're backing spreads with available margin then the negative amount is just added to your margin debt.
They wouldn't force liquidate shares unless you no longer had enough available margin to cover the options loss.
(if you don't have enough then how they handle it varies by broker- from what I've read IBKR for example just auto liquidates stuff to cover- many other brokers just issue a margin call and give the holder 2 days to settle it how they wish- choosing what to sell, depositing more $ from somewhere, etc)
I decided on eating my losses first thing this morning. That translated into a roughly $130 loss on the $150 wide spreads. While I was at it I also closed my Feb calls.
I'm left with Jun 750s that I'm selling cc against (950s this morning - nearly $20 premium). I also sold some cc at 900 on shares that I will be selling anyway though I don't need to immediately. I consciously realize that this violates my sell-into-strength rule. The 900s are a price I'd like to get for those shares (like right now - I also pondered just selling the shares at market but decided I don't need the sale for a few months for taxes, so I'll give it a little bit).
The 950s are on calls with a June expiration. I have already been planning to be aggressive with call sales against those and haven't been as aggressive as I intended. 950 strike this morning is that aggressive position, with a roll to next week available any time.
Then again $870ish might BE weakness for this week.
I am mostly cash now.
I decided to stop fighting the macro headwinds. I haven't seen anything to indicate that there is a change in the Tesla business. But the market can remain irrational longer than I, we have amazingly large economic stimulus that is coming to an end in some form or fashion, and I can't predict how the stock market will respond.
I do remember that the disconnect between economy and stock market back when the pandemic began was huge in my estimation. So large that I even bought some SPY puts as a hedge. That hedge was trivial within the larger portfolio and were just about worthless pretty quickly as the stock market rallied, even as big chunks of the households were having such a tough time of it.
Then stimulus arrived and we've been on a tear since. Now its coming to an end and I don't know how far down we can go.
I'm left with Jun 750s that I'm selling cc against (950s this morning - nearly $20 premium). I also sold some cc at 900 on shares that I will be selling anyway though I don't need to immediately. I consciously realize that this violates my sell-into-strength rule. The 900s are a price I'd like to get for those shares (like right now - I also pondered just selling the shares at market but decided I don't need the sale for a few months for taxes, so I'll give it a little bit).
The 950s are on calls with a June expiration. I have already been planning to be aggressive with call sales against those and haven't been as aggressive as I intended. 950 strike this morning is that aggressive position, with a roll to next week available any time.
Then again $870ish might BE weakness for this week.
I am mostly cash now.
I decided to stop fighting the macro headwinds. I haven't seen anything to indicate that there is a change in the Tesla business. But the market can remain irrational longer than I, we have amazingly large economic stimulus that is coming to an end in some form or fashion, and I can't predict how the stock market will respond.
I do remember that the disconnect between economy and stock market back when the pandemic began was huge in my estimation. So large that I even bought some SPY puts as a hedge. That hedge was trivial within the larger portfolio and were just about worthless pretty quickly as the stock market rallied, even as big chunks of the households were having such a tough time of it.
Then stimulus arrived and we've been on a tear since. Now its coming to an end and I don't know how far down we can go.
TheTalkingMule
Distributed Energy Enthusiast
My current strategy is to pretend I'm as calm as you are. So far.....not going well.
I believe all relevant gaps must now have been filled?
I don't know anything about gaps but I do know that we are currently sitting $16 lower than we were a year ago. How long do these so called "gaps" last
Insane! I just don't get it, and am really dumbfounded how illogical and irrational the markets are right now with respect to TSLA.
Also, I don't get gaps either. Was asking to see if any of the TA aficionados might pipe in. Clutching at straws might be another way to describe it...
I just sold one 01/28 980 call to see if that helps the stock, seems to be helping already lol.
edit: May be I should sell more or everyone should sell one each "dare you" CC. Let's go
edit: May be I should sell more or everyone should sell one each "dare you" CC. Let's go
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I am right there with you- so might as well wait. Haven’t been posting here much. +p920/-1090 and +p920/-1020 for this week expiry and +p975/-1075 for next week. If I close now looking at a 7 figure loss. Just holding for now to see if position can be salvaged - May have to do a roll with long expiration, but will wait till Thursday to do so.
Is there any benefit to rolling earlier in the week? Does it help with the roll if the long leg is ITM?
Jan 2023, 700 strike are now $326 and 0.76 delta. So you'd leverage of around 2.5:1 with these. IV is still sort of high, there's >$100 of time value on these.. I'm sort of undecided.
There is a benefit to rolling early as time value on DITM BPS erodes rapidly as the week goes on and can get very ugly by Friday. I've rolled all my main BPS to Feb4 earlier today to reduce risk. They were debit rolls but there would need to be a major move upwards in the SP after Wednesday to counter the theta. I used Options profit calculator to calculate what SP would need to be to make waiting to roll better. In the end I decided to take a lower risk roll now rather than roll late in the week with there being a sell the news risk. Hopefully there is a good rally into next week and I can roll my BPS for credit or even close some out.
The long leg being ITM definitely helps and you will typically get a credit roll if the SP is around 50% the way into the spread or higher.
bkp_duke
Well-Known Member
I would assume there is more liquidity earlier in the week than say on a Friday, when it might be hard to roll. But I'm resolved to not touch these until I see how the Fed minutes and TSLA earnings play out. We've seen some nutty reversals, both ways, with this stock. If I closed the positions now, I would just be trashing my account in full.
I decided to wait until earnings, and then evaluate again. Should get better price for shares, and with IV crush option prices should drop.
OTOH market seems really irrational right now..
I for one am looking forward to the $250 move upward on Thursday so that I'm back ATM.
This morning, I used a psychiatric defense mecanism: active denial.
I have not opened my brockerage account when TSLA was -7%.
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My understanding is “options traders are pricing in a 10.4% move” is not directional. It is derived from options prices and IV. Options traders expect TSLA to break >10% up or down.
*what he said
yesterday's prediction of ~845 vs. today's 852 bottom was eerily/spooky/ominously accurate
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