Wiki Selling TSLA Options - Be the House

[generalenthu]

Interesting , wonder what they're up to next ...

EDIT: Iron butterfly? What is it?

By @generalenthu
Last updated at: 2022-02-01 20:48:59 UTC
volume every minute where volume >= 500 contracts

Minute	price	strike	option_type	Expiry	incVol
15:47	932	300	put	2022-02-18	2500
15:47	932	300	call	2022-02-18	2500
15:47	932	500	call	2022-02-18	2500
15:47	932	500	put	2022-02-18	2500

This looks like a Box strategy when someone is trying to arb some funding inefficiencies. It would be very cheap to put this on as it doesn't take any directional risk.

In it's essence it is very likely a synthetic long paired with a synthetic short. And depending on which leg is long or short, you'll end up with excess or deficit cash of $50 million until 2/18.

If the stock is likely to pin at one of these strikes, it could get fugly. Clearly that's not a major cause for concern.

More here: obviously you could also think of this as a bps paired with a bcs, both at the same strikes.

 

[bkp_duke]

This looks like a Box strategy when someone is trying to arb some funding inefficiencies. It would be very cheap to put this on as it doesn't take any directional risk.

In it's essence it is very likely a synthetic long paired with a synthetic short. And depending on which leg is long or short, you'll end up with excess or deficit cash of $50 million until 2/18.

If the stock is likely to pin at one of these strikes, it could get fugly. Clearly that's not a major cause for concern.

More here: obviously you could also think of this as a bps paired with a bcs, both at the same strikes.

I tried this once. Fidelity refused to fill the order saying they no longer allow box strategies due to risk of early assignment.

 

[Zhelko Dimic]

Looking for more opportunities today to free more margin. Last week I rolled out, down and wide to 4/14 900/600 to get out of way. That same spread can be rolled nearer and UP to 2/11 1020/720 at a credit of $45 $21, sitting similar to where the above trade ended. The spread could be rolled at midway, say slightly above 900, should we need to. IF the price trend continues, this spread too could likely be closed, freeing 150k of margin weeks earlier.

With no certainty ever of anything sticking, is this a silly thought OR simply wait the April expire?

EDIT: $21 credit, not $45 ...

I didn't close my puts Jan'22 for $3K each in December, because I thought that was a "waste of the money".
21 Jan 22, I closed them at $13K each.
Well ok, I rolled them into Feb '11, but after carnage of the last week, I felt happy to close Feb at slight gain, so $13K it is.
Not sure if these is any lesson in this, as I've had opposite examples too.
Original price I sold them was 23K prob 8 months ago.

 

[generalenthu]

I tried this once. Fidelity refused to fill the order saying they no longer allow box strategies due to risk of early assignment.

You're right. I might have got into a box once and was a learning experience.

I think the short call leg was immediately exercised. And there was no borrow available. So the broker immediately liquidated the short position and I was left with 3 legs and cash with directional risk. I had to liquidate the rest at a decent size loss I think.

What looked like a cheap box was actually not cheap because the borrow needed for one of the legs was super expensive.

 

[UnknownSoldier]

I tried this once. Fidelity refused to fill the order saying they no longer allow box strategies due to risk of early assignment.

The story of this is actually amazing. It involves the early days of Robinhood and was documented on WSB. Today it is WSB legend and brokers no longer allow retail to open box spreads.

 

[ChefBoyardee]

Yesterday I sold some far otm CC’s on strength

Today I closed a few call spread legs of an April IC during the morning dip and sold a few 1100/1110/850/840 for the 11th.

Still taking it easy while I wait for my rolled spreads to recover, and trying my best to be disciplined and play both sides. Although, I’m getting more and more confident in this being the bottom after seeing AMD and Google after hours.

 

[MrMoo]

The story of this is actually amazing. It involves the early days of Robinhood and was documented on WSB. Today it is WSB legend and brokers no longer allow retail to open box spreads.

1ronyman that you?

 

[UnknownSoldier]

1ronyman that you?

Nope, but I'm glad you know about it.

 

[ChefBoyardee]

Nasdaq futures up over 1%, S&P only .5%. Looks like more rotation back into growth. Tomorrow should be fun

 

[OrthoSurg]

Nope, but I'm glad you know about it.

At 9:35

Seems like GOOG and AMD are pushing the futures positive and will finally be able to start closing some -p910 with profit today!

 

[InTheShadows]

At 9:35

Seems like GOOG and AMD are pushing the futures positive and will finally be able to start closing some -p910 with profit today!

I’d like to close my -1020’s and -1030’s with profit today. At this point I’d even settle for break even.

 

[strago13]

I’d like to close my -1020’s and -1030’s with profit today. At this point I’d even settle for break even.

Would be nice, but unlikely considering the shorties just walked the price all the way back down

 

[bkp_duke]

Would be nice, but unlikely considering the shorties just walked the price all the way back down

Yeah, the blatant manipulation, especially pre-market to "set the tone" is getting old. I hope buyers show up soon and just steamroll these F-ers.

 

[TheTalkingMule]

Took the opportunity to roll and widen my 2/4 $1040/$940 BPS to 2/11 $1040/$890 at a credit of $15.35

That's the last of my far ITM BPS for this week. All have been rolled to 2/11 and widened. Feeling OK about closing them or more likely rolling for credit next week on any spike near $1000.

Now just sitting on a couple $1000/$900 2/4 BPS that I'll roll at today's high, which will hopefully be around $945+.

 

[Yoona]

quick play
BTC 2/4 -p850/+p750 at the dip
$2.91, 2 DTE, 8 Δ, Prob OTM 91%
already at 29%, will STO 50%

edit:
STO 2/4 -p850/+p750 at the dip
$2.91, 2 DTE, 8 Δ, Prob OTM 91%
already at 29%, will BTC 50%

 

[jeewee3000]

Took the opportunity to roll and widen my 2/4 $1040/$940 BPS to 2/11 $1040/$890 at a credit of $15.35

That's the last of my far ITM BPS for this week. All have been rolled to 2/11 and widened. Feeling OK about closing them or more likely rolling for credit next week on any spike near $1000.

Now just sitting on a couple $1000/$900 2/4 BPS that I'll roll at today's high, which will hopefully be around $945+.

Where does your conviction that we will spike close to $1000 next week come from?

 

[TheTalkingMule]

Where does your conviction that we will spike close to $1000 next week come from?

I wouldn't call it conviction, just my guess as to the likely move over the next 8 trading days. I have actual conviction that I can close these by end of May with SP closing over $1050.

 

[TheTalkingMule]

It's almost like these guys want retail to stop selling BPS.

Looks like they're pushing QQQ down as hard as possible, can't imagine it'll be successful on a day like today.

 

[corduroy]

Was Monday and Tues just a dead cat bounce in growth?

I nibbled on STO 2/11 640/-740, but I don't have much confidence in this market holding gains right now.

 

[TheTalkingMule]

Was Monday and Tues just a dead cat bounce in growth?

Looks to me like there's a huge battle to push QQQ down below certain technical levels to maintain the bear trend against the pushback of blockbuster earnings.

For TSLA we're options driven. What could be more perfect than $900 today? Put rollers get screwed. All the $1000c holders the next three weeks crap their pants. It's perfect.

I'm calling an afternoon rebound in TSLA once the retail options crowd gives up on profits. But I'm an eternal optimist, so discount my guess appropriately. Just seems just way too much good news to hold QQQ down like this. Even the Fed is saying today they're not letting "market frenzy" speed their rate raise schedule.