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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
jeewee3000
Active Member
I don't! That would give me even less time for the SP to recover (and my BPS with it).I wish it was Friday
corduroy
Active Member
STO 2/4 -690/590s @ $2.75. Staying 20%+ OTM. Pretty good premium, even after the crush.
STO 15X 01/28 -820/+770 BPS for 4.54 credit. I will sell more of these if we drop more.
ChefBoyardee
Member
We touched the trendline. Just replaced my AAPL position and some TSLA shares w/ Jan 2024 1500/1950 leaps spreads
Knightshade
Well-Known Member
IV collapse this morning left me unwilling to wait to roll ITM BPSes till Friday, time value had dropped to near zero so too much early assignment risk.
Rolled 1 week out and slightly wider for a small debit hoping that "3 days to sink in" thing happens to the SP next week
Rolled 1 week out and slightly wider for a small debit hoping that "3 days to sink in" thing happens to the SP next week
Not advice and not trying to add salt to the wound but I hope this is useful to some folks. IMO the market dynamics and the quick moves in the market require more active trading. I have been glued to the monitor this week. It is a tough environment where you cannot just place your trades and forget about them. The other problem I think, which I'm getting better at, is that we are always so bullish about Tesla. So we think our positions will eventually recover. Long term it makes sense but markets are dumb in the short term.
When this week started I was looking at max loss on a number of positions(around 350K). If I had left those positions as is I would have ended with a 320K loss and counting...not life changing or anything but would have meant I needed to climb out of a big hole.
Actively trading the ups and downs of the stock this week allowed me to limit that loss for 85K. Other than the BPS position that I just opened most of my open positions are naked puts that are ITM and honestly OK with getting assigned. It was a full time job to be able to get out of the mess. Sold calls, sold BCS, legged etc you name it and I did it.
scubastevo80
Member
We closed our first max loss position (two -1050/+960 1/28 contracts) a few minutes ago, wiping out double all of our 2021 gains (3 months worth), and we're still sitting on losing positions with the account showing we're down 40% versus what we started with. Two trades were rolled out to 2/4 and the 1/28 -950/+850 is still sitting - likely trying to roll later today or first thing tomorrow (perhaps at a debit). Really need to start fresh as managing these losers is becoming a downer.
Edit: BorntoFly - totally agree with your comment about trading and moving on at yesterday's pop. If we'd have closed everything, we'd be down 1-2% and writing safe BPS with today's drop.
Edit: BorntoFly - totally agree with your comment about trading and moving on at yesterday's pop. If we'd have closed everything, we'd be down 1-2% and writing safe BPS with today's drop.
Oh yeah, if I'd closed everything yesterday I'd be looking at a meager loss on 1 position and low profits on a few others.
But after Elon's selling and the good P&D I think nobody thought that anything below 1000 would be realistic soon, let alone sub 900.
But after Elon's selling and the good P&D I think nobody thought that anything below 1000 would be realistic soon, let alone sub 900.
Probably just me, but wording seems a little off versus:
With 70% growth yeilding an EPS of $14, the PE would be 63 at current stock price.
or
Based on 4xQ4 (Elon comp adjusted), PE is currently 86 with 70% growth projected for 2022.
We are obviously in an SP downturn from AH of early Nov21 and early Jan22 (~30%), and IV is down after last night's ER. I'm thinking this is a opportunity to do something clever with my LEAPs under the "rule" that delta increases with lower prices, and I have confidence in an uptrend from now to Jan 2024.
I'm allocated to approximately 50/50 Shares and Jan24 LEAPs 1000/1200/1400 (ATM on average at time of purchase) -- latter having declined ~50% from early Nov21. Does it make sense for long-term returns under the uptrend assumption to roll these LEAPs closer and down in strike?
I can roll for small credits to Jun 23 800/950/1100. My general plan is to consistently roll LEAPs to maintain an allocation approximately equal to shares allocation, so this idea would be a swing trade of some kind, right? Thanks for any suggestions to consider by more seasoned LEAP investors who probably look at this question as pretty basic.
I'm allocated to approximately 50/50 Shares and Jan24 LEAPs 1000/1200/1400 (ATM on average at time of purchase) -- latter having declined ~50% from early Nov21. Does it make sense for long-term returns under the uptrend assumption to roll these LEAPs closer and down in strike?
I can roll for small credits to Jun 23 800/950/1100. My general plan is to consistently roll LEAPs to maintain an allocation approximately equal to shares allocation, so this idea would be a swing trade of some kind, right? Thanks for any suggestions to consider by more seasoned LEAP investors who probably look at this question as pretty basic.
Did you roll these down or just out?
I am trying to figure out what to do with my 940's and 950's (these were already rolled down and out to 2/4 and 2/11 respectively). I fear this dip could last quite a while.
You generally get more Delta at the cost of Theta when doing that (if IV for the expiries is similar).
If the expected uptrend times Delta > the higher intrinsic value, then this is a good trade if you assesment is correct.
If the SP won't behave, it can be bad, obviously.
I think LEAP Bull Call Spreads might be a good option. I have been converting a lot of my IRA options to spreads. Here's a great blog post by Frank.
TSLA Options: Are Call Spreads the Future?
An in-depth blog about investing in TSLA. Here you will find investment theses, financial models, earnings forecasts, options strategies, and more.
teslainvestor.blogspot.com
And using actual 2021 earnings of 6.78 current PE is 128 with SP of 866.
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