The Tesla twitterati - sourced from reputable German newspapers - are claiming GigaBerlin approval end of the week. It’s gonna be an interesting Monday.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
But only for the building permit, not the operating permit. Which will likely be a few weeks later.
They did not get called, even with the AH closing above 810
SebastienBonny
Member
I think the chances were low, because we were only a bit above 810 and you have to take the premium paid by a buyer into account as well.
It seems like time.....
Last year after our drop from $900 down into the $5** I spent some time buying OTM calls and then leveraging those with rolls and taking profits along the way until I cashed them out around $1150.
I am now in the process of laddering this same idea with some tweaks to take advantage of the ride back up (Not advice, we could end up back in the basement)
This involves buying call from you! So thanks!
Really though, I am eyeing calls in the $1050 to $1150 range at least 45 days out and most in the 60 days range.
For example this morning -
BTO 3/25 $1100's for $1.50 each
4/14 $1050's for $9 each
5/20 $1100's for $17 each
6/17 $1150's for $19.50 each
Reasons that I am moving forward with this plan again now - IV is low again (I consider under 60 low) it is around 55 depending on the strike right now
2 factories opening in the next month - I know that WE knew this, but the Street won't add any of that production into their models until they are open.
P&D report coming in less than 35 days
War shouldn't last that much longer (hopeful, I know)
Supply chain will continue to ease and Tesla is not battery constrained anymore
Confirmation of new Giga in China being built next to GF3
What am I going to do with these???
Once they have doubled in value - example above 03/25 $1100's go from $1.50 to $3 each - I will take out my investment and roll the remaining contracts out and up slightly, so I end up with less contracts, but they have a $0 cost basis.
Then slowly do the same with all of them until I end up with a pile of free calls that I will slowly combine and consolidate until I have a handful of free leaps in the $2k range while taking profits along the way.
There is not really anything to it, but that is the plan for now.
Cheers
Last year after our drop from $900 down into the $5** I spent some time buying OTM calls and then leveraging those with rolls and taking profits along the way until I cashed them out around $1150.
I am now in the process of laddering this same idea with some tweaks to take advantage of the ride back up (Not advice, we could end up back in the basement)
This involves buying call from you! So thanks!
Really though, I am eyeing calls in the $1050 to $1150 range at least 45 days out and most in the 60 days range.
For example this morning -
BTO 3/25 $1100's for $1.50 each
4/14 $1050's for $9 each
5/20 $1100's for $17 each
6/17 $1150's for $19.50 each
Reasons that I am moving forward with this plan again now - IV is low again (I consider under 60 low) it is around 55 depending on the strike right now
2 factories opening in the next month - I know that WE knew this, but the Street won't add any of that production into their models until they are open.
P&D report coming in less than 35 days
War shouldn't last that much longer (hopeful, I know)
Supply chain will continue to ease and Tesla is not battery constrained anymore
Confirmation of new Giga in China being built next to GF3
What am I going to do with these???
Once they have doubled in value - example above 03/25 $1100's go from $1.50 to $3 each - I will take out my investment and roll the remaining contracts out and up slightly, so I end up with less contracts, but they have a $0 cost basis.
Then slowly do the same with all of them until I end up with a pile of free calls that I will slowly combine and consolidate until I have a handful of free leaps in the $2k range while taking profits along the way.
There is not really anything to it, but that is the plan for now.
Cheers
jeewee3000
Active Member
My BPS expiring in the coming weeks like your optimism.It seems like time.....
Last year after our drop from $900 down into the $5** I spent some time buying OTM calls and then leveraging those with rolls and taking profits along the way until I cashed them out around $1150.
I am now in the process of laddering this same idea with some tweaks to take advantage of the ride back up (Not advice, we could end up back in the basement)
This involves buying call from you! So thanks!
Really though, I am eyeing calls in the $1050 to $1150 range at least 45 days out and most in the 60 days range.
For example this morning -
BTO 3/25 $1100's for $1.50 each
4/14 $1050's for $9 each
5/20 $1100's for $17 each
6/17 $1150's for $19.50 each
Reasons that I am moving forward with this plan again now - IV is low again (I consider under 60 low) it is around 55 depending on the strike right now
2 factories opening in the next month - I know that WE knew this, but the Street won't add any of that production into their models until they are open.
P&D report coming in less than 35 days
War shouldn't last that much longer (hopeful, I know)
Supply chain will continue to ease and Tesla is not battery constrained anymore
Confirmation of new Giga in China being built next to GF3
What am I going to do with these???
Once they have doubled in value - example above 03/25 $1100's go from $1.50 to $3 each - I will take out my investment and roll the remaining contracts out and up slightly, so I end up with less contracts, but they have a $0 cost basis.
Then slowly do the same with all of them until I end up with a pile of free calls that I will slowly combine and consolidate until I have a handful of free leaps in the $2k range while taking profits along the way.
There is not really anything to it, but that is the plan for now.
Cheers
One 870 CC at .15 delta opened Fri (lowest CC sold last week to test aggressive sells ) - closed for $1600 loss
with 2 factories scheduled to open must play only the pennies and wait for SP, stock and portfolio to appreciate.
unless there are nukes, might be best to get out of the way for few weeks ....
with 2 factories scheduled to open must play only the pennies
and wait for SP, stock and portfolio to appreciate.unless there are nukes, might be best to get out of the way for few weeks ....
jeewee3000
Active Member
I just STO a 3/4 $900cc @$12, thinking two days like today in a row are unlikely in this macro environment.One 870 CC at .15 delta opened Fri (lowest CC sold last week to test aggressive sells ) - closed for $1600 loss
with 2 factories scheduled to open must play only the pennies
unless there are nukes, might be best to get out of the way for few weeks ....
BrownOuttaSpec
Active Member
I dunno, it seems like TSLA is following "clean energy" today and not it's typical macros. You might be in trouble if macros take a big bump this week too.
I agree that we will continue to remain volatile. If needed I'm going to use the roll function until eternity. Opened a bunch of 925/1025 weekly BCS around 845. If TSLA breaks 920 I will think about rolling for a credit. Too many times I have closed these positions early for a loss only to see the stock take a dive.
jeewee3000
Active Member
Ah but I have an ace up my sleeve: I wouldn't mind if this one exercised since I need cash soon.I dunno, it seems like TSLA is following "clean energy" today and not it's typical macros. You might be in trouble if macros take a big bump this week too.
No worries
840, 880 CC for this week and next aren't loving the uptrend. What's the strategy for rolling CC? For instance, the 840 expiring 3/4, I assume they can be called before Friday. Rolling for credit to 3/11 850 wouldn't necessarily make them safe, would it? Rolling on the uptrend also seems expensive. I don't want the shares called, may consider going far out and avoidingCC for a while.
chiller
Member
I STO 920C for this Friday @2.00. Unfortunately, this was way too early and they are now @9.00
Early assignment is very rare according to my own experience (never) and reports here. I've been tracking one week/$15-$20 rolls on my -c820 for 3/4 and 3/11 the past few days, focusing on the STO+BTC net credit/debit. As SP has risen, some rolls are earning less credit/more debit, and some more credit/less debit -- depends on level of strike improvement. Still think these rolls can be done for many weeks, assuming we don't have a $100+/week spurt. Even if we do, I'll just roll patiently until volatility brings SP back down to strike price, or conceivably get to a point where I'm okay to take assignment as I want to lower TSLA exposure at some point. As you know, you can book pretty strong premiums a month out.
The 5/20$1200 doubled today so far.
The 5/20$1200 doubled today so far.
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Knightshade
Well-Known Member
Early exercise when there's time value left is exceedingly rare. They CAN be called today, but why would they be? Anyone holding them would make more $ just reselling the call to someone else, since they'd get $ for the time value PLUS the intrinsic. Exercise only nets you the intrinsic.
Obviously there comes a point where time value approaches zero, but until then early exercise costs them money compared to reselling the call.
There IS the case where someone wants to avoid the tax consequences of reselling the call for a profit, and exercising lets you put that off (until you sell the shares someday, potentially at a lower rate) but that's also pretty rare- and not likely to be happening with short term calls and this early in the year.
Any sold option can be exercised by the purchaser at any time.
The problem with early exercise for the purchaser is that they just gave away the remaining time value to the seller. An example I have right now - my 750cc for this week are trading at $127 with shares at 874. There is ~$3 in time value in that position. I also don't want to be assigned but if I do get assigned then that $3 time value ends up in my hands.
The math on that - if I were to be assigned at this moment and assuming they are backed by shares, then at exercise I sell 100 shares for $750 and the covered call currently worth $127 is cancelled; value to me is 877. Or going at it from the other side the call owner can decide they want the 100 shares - they exercise and purchase 100 shares at $750. In doing so they covered call disappears, current value $127. They "pay" in effect 877 for 100 shares that can be purchased for $874.
That being said the remaining $3 in time value is disappearing pretty quickly, whether from time passing or the shares continuing to go up.
My approach - roll thursday is a generality to roll this week positions on Thursday rather than waiting for Friday. Its really more of a state of mind and how close to the edge you want to run things. The real guidepost for me is the time value - when that drops to ~$.50 or ~$1 then its time to roll whatever else I might be thinking.
When particularly DITM in the past I found myself rolling a full week ahead of expiration. In the current context that would mean rolling on 3/4 options expiring on 3/11. For those 3/4 750s I have I expect that I will roll them today or tomorrow - the time value is melting away pretty quickly and the range of roll options I have available is getting less and less good
john tanglewoo
2012 Roadster Owner
This is a great idea for a way to get familiar with the assignment process and one I did not consider, thanks for the idea!
Thanks for the advice Mike. I have been reading for months, and now reached the point where I am practicing with a small (to me) position. I am perfectly okay with being assigned the shares, in fact that's why I'm selling CSPs. Also that's why I calculated my strike to be almost 30% out of the money. Based on TSLA weekly, bi-monthly, and monthly movements and in consideration of earnings periods etc, this was what I found to be a price that I would be comfortable adding more shares at.
Also I never mentioned margin, I work with a large brokerage firm....I have collateral against my puts, don't have to pay anything, and if I get assigned the shares I can afford to buy them.
Lastly, I do have somebody at my brokerage firm monitoring this put with me and walking me through the process. I could have just picked up the phone and called him with these questions (and I will), I just know this forum has a lot more information to offer than 1 individual I am working with.....so that's why I reached out. Appreciate your response though because yes, you need to be aware of what you are risking (which I am).
Thanks for all your responses Reddy, this definitely clarified some things!
With the large move this morning I've closed all of my 700s csp for ~90%. On balance these were $10ish sized net results that needed 2 weeks to realize their credits (1 roll). No new CSP opened - my rule on replacement positions is that when closing today, tomorrow is the soonest I open a replacement (or a REALLY large move today - if the shares went back to 810 later in the morning then I'd probably be opening new CSP at that point rather than wait for tomorrow).
CC are another matter - I had 750 and 800 strike cc for this Friday expiration. Turns out that a straight roll on the 750s for 1 week was still worth 4.50(ish) while a strike improvement roll was right on the edge of a credit or debit. Considering how deeply ITM the 750s went I decided to roll 1/2 for that 4.60ish credit. The other half dug back into the original opening credit of $39ish and "spent" $30 of it on 1/2 of the contracts. $30 from all of the contracts on 1/2 of the contracts let me take a $60 debit on the other half and roll those to 840. Assuming that I later take assignment on the 840s then I just payed $60 (the debit) for a $90 strike price improvement and still have $10 of the original credit from last week left over.
Also worth noting - that $90 strike improvement wasn't linear. If I had taken the $30 debit on all of the contracts I could have rolled to about 790. So the first $30 bought a roughly $40 strike improvement, while the 2nd $30 bought an additional $50 strike improvement (closer to the money). I didn't look at a 2/3rds : 1/3rd split (roll 2/3rds straight out, and use a $90 debit on the remaining 1/3rd).
I'm sitting on the 800s for now, thought maybe not for much longer. At this moment (shares at 863) they have a $10 strike improvement with a 1.40 credit, or a 2 week roll provides a $25 strike improvement with that same 1.40 credit. One of my trading rules is that when rolling for time optimize for strike improvement (aka risk reduction) over credits.
CC are another matter - I had 750 and 800 strike cc for this Friday expiration. Turns out that a straight roll on the 750s for 1 week was still worth 4.50(ish) while a strike improvement roll was right on the edge of a credit or debit. Considering how deeply ITM the 750s went I decided to roll 1/2 for that 4.60ish credit. The other half dug back into the original opening credit of $39ish and "spent" $30 of it on 1/2 of the contracts. $30 from all of the contracts on 1/2 of the contracts let me take a $60 debit on the other half and roll those to 840. Assuming that I later take assignment on the 840s then I just payed $60 (the debit) for a $90 strike price improvement and still have $10 of the original credit from last week left over.
Also worth noting - that $90 strike improvement wasn't linear. If I had taken the $30 debit on all of the contracts I could have rolled to about 790. So the first $30 bought a roughly $40 strike improvement, while the 2nd $30 bought an additional $50 strike improvement (closer to the money). I didn't look at a 2/3rds : 1/3rd split (roll 2/3rds straight out, and use a $90 debit on the remaining 1/3rd).
I'm sitting on the 800s for now, thought maybe not for much longer. At this moment (shares at 863) they have a $10 strike improvement with a 1.40 credit, or a 2 week roll provides a $25 strike improvement with that same 1.40 credit. One of my trading rules is that when rolling for time optimize for strike improvement (aka risk reduction) over credits.
ChefBoyardee
Member
We popped back into the channel and just retested the bottom line. If we close above 864 that'll be great - means the bull trend is intact
Sold 50 Jan '23 calls at $2300 strike (covered by shares)
Bought 50 Jan '24 calls at $2300 strike
Sold 50 Jan '24 calls at $2475 strike
The Jan '23 calls premium offsets the cost of the Jan '24 call spreads. For a $50 credit I have max profit upside of $875k with no out of pocket cost.
Downside if shares break over $2300 by Jan '23 (unlikely) in which case I'll turn to csp 20% otm with the proceeds
Bought 50 Jan '24 calls at $2300 strike
Sold 50 Jan '24 calls at $2475 strike
The Jan '23 calls premium offsets the cost of the Jan '24 call spreads. For a $50 credit I have max profit upside of $875k with no out of pocket cost.
Downside if shares break over $2300 by Jan '23 (unlikely) in which case I'll turn to csp 20% otm with the proceeds
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