I sold the last few covered calls I can sell; $1150's for $4 this morning. Please take my shares.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
The issues some people are experiencing with rolling ITM spreads have convinced me even more that I’m going to stick with naked puts and calls.
I have some ITM puts (-p1030) and can roll them out by one week with nice premiums and already did so today for half of them (at $13.00 and $14.00). I’m feeling bad for those with spreads who have to go out months or even half a year to be able to roll without debit. That’s such a long time to lock up margin and lose the possibility to earn money.
Ofcourse premiums for rolling naked puts and calls will not always be that good, especially when IV is lower and/or the position goes deeper ITM. But in my experience even then it’s still possible to roll by one week for a credit at 150 points ITM. Only at 200-250 points ITM does it become necessary to roll by two weeks.
I have some ITM puts (-p1030) and can roll them out by one week with nice premiums and already did so today for half of them (at $13.00 and $14.00). I’m feeling bad for those with spreads who have to go out months or even half a year to be able to roll without debit. That’s such a long time to lock up margin and lose the possibility to earn money.
Ofcourse premiums for rolling naked puts and calls will not always be that good, especially when IV is lower and/or the position goes deeper ITM. But in my experience even then it’s still possible to roll by one week for a credit at 150 points ITM. Only at 200-250 points ITM does it become necessary to roll by two weeks.
bkp_duke
Well-Known Member
Yeah, Powell backing off or something? Everything I track is spiking up!
Yes but the press release is already out. Check the main investors topic.
Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
Is this even legal? Yes, it is still legal to stub your johnson in 31 States. /s
teslamotorsclub.com
bkp_duke
Well-Known Member
Sold 2/4 -800/+600 @ $8.00 a few minutes ago with the SP close to $965. May open more once the market digests Powell's speech.
LightngMcQueen
Aspirationally Rational
are you referring to that "Margin Requirements & Concentration Guidelines":
I wonder if those are IIROC (Canadian self-regulator) Rules and therefore will affect all Canadian brokers, I've tried to read IIROC docs but I could not understand concentration rules. I noticed 'margin non-linearity' in both Questrade and IBKR ... smaller accounts are fine but those with more Tesla get unpredictable margin requirements.
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bkp_duke
Well-Known Member
Ok, this started as a joke in my head, but the more I think about, the better idea it seems. There are lots of competent coders here. Anyone feel like making an API for a trading platform that enters the exact opposite of every trade you do? I feel it's a gold mine just waiting there for the taking! 
Zhelko Dimic
Careful bull
Yes.are you referring to that "Margin Requirements & Concentration Guidelines":
I wonder if those are IIROC (Canadian self-regulator) Rules and therefore will affect all Canadian brokers, I've tried to read IIROC docs but I could not understand concentration rules. I noticed 'margin non-linearity' in both Questrade and IBKR ... smaller accounts are fine but those with more Tesla get unpredictable margin requirements.
InTheShadows
Active Member
Those calculations are never correct.
I take the previous credit received, subtract .01 or .02 depending on how many contracts there are to remove the fees. And add that value to my new position plus or minus the new transaction price. So if I did a debit roll for $1, I subtract that from the previous price and this is my new trade entry price.
Example
Trade 1. Open credit 2.08, closed for 2.06 debit
Trade 2, rolled for .4 credit, new cost basis is 2.46
This closes my trade 1 for a minuscule profit after subtracting the fees. I have my spreadsheet formulas set to watch for this and mark it’s status as “Rolled” that way I can calculate my repair rate. Which this year is a staggering 65.9%. My target repair rate is < 10%
scubastevo80
Member
Spoke to soon, didn't you! TSLA closing above $900 today? Looks like there will be a lot of rolling tomorrow...
dc_h
Active Member
Sold 5 BCS 1150-1250 just in time. J Powell said rates up in March right after I sold them. I hope he stops talking soon, the longer he goes the worse the reaction. I think we're down about $60.00 since he started answering questions.
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