Wiki Selling TSLA Options - Be the House

[jaspa]

What you guys would do with 900 CCs. expiring today? Roll them to next week or hold till 3:59 and close then last minute?

Not advice - I'd wait since there's a large 900 call wall. Still time left for theta to burn off.

 

[juanmedina]

All the technical analysts that I follow also say that unless Tesla is above 900 we will face downward pressure. What did you roll the $875's to? I am terrible at trading but I am still going to waited out and at 11.8% up now for the week we might see some selling tomorrow but who knows. I wonder if the stock will do the usual patter when I have in risk position; run a lot early in the morning just to scare me into rolling or taking a loss and then in the afternoon tank lol.

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This has to hurt right now. I have been selling Dec 22nd $1200 for $68-76 as my hedge which is only like a 8% protection.

This aged badly. I end up closing my CC for a $3K a piece lost so about a Month and a week of income. This year it has been something else.... I might go back to just HOLD lol.

 

[elasalle]

Something wrong with my CC today ...
Don't know what it is

... Living on the Edge


... there's supposed to be a 22.5K call wall at 900 ... where them MM's @ ?

 

[dl003]

I'd like to present another view:

Next week is quad witch and max pain on SPY is 443. This means that the amount of puts ITM is much, much larger than the amount of calls ITM. If FOMC is dovish, put holders will trample on each other for the exit, which leads to a squeeze on the entire market. Then we'll see a retracement as call holders take their profit. The general direction afterward for the market will be up. TSLA can easily run 100 points if SPY goes up to 443.

If FOMC turns out to be hawkish, we'll see a bloodbath, followed by a dead cat bounce and the general direction afterward will be down, aka a prolonged bear market.

I've been tracking the performance of SPY during quad witch weeks. Without fails, it has always hit its max pain at some point during the week. What also important is whether the Friday marks a turning point for the market or serves as a continuation of the current trend. Since the end of the COVID crash, every quad witch Friday has been a day for traders to roll their existing positions to new positions, meaning the market dropped but then came roaring back the week after. There's only one exception and it was the January LEAP OpEx. The market dropped way past its max pain (SPY 460) and never was able to reclaim it. That was a sign of trend reversal. This coming quad witch day is super important. It scenario 1 plays out, I have no doubt SPY can overshoot 443 and signal a new bull run. If scenario 2 plays out, we go much deeper from here as the market will perceive hawkishness as a trigger for an economic recession.

Including the SPY dividend issued this morning, SPY did reach 443 and TSLA ran $100 from its low. I hope nobody was caught off guard this week. The market as a whole seems to have turned a corner as Fed's tone was measured and dovish (at least for now).

 

[scubastevo80]

Are we seriously going to end this week with 4 consecutive up days averaging 4% moves? I had to roll my "sure thing" BCS -900/+1000 out a week this morning to $915 for a $1 credit. I need a reset of all my spreads so I can start fresh...

 

[CHGolferJim]

What you guys would do with 900 CCs. expiring today? Roll them to next week or hold till 3:59 and close then last minute?

Keep in mind this is a triple witching day, so we may see large and volatile volume late and a large closing cross. I don’t think it’s uncommon to see trading slightly higher now (~$902) than where it will settle, but I am going to roll some 3/18-c$870 this afternoon, and will do it before 3:20 to avoid confusion. I use a broker so I have to add some time cushion that people with direct entry don’t have to worry about.

 

[traxila]

What you guys would do with 900 CCs. expiring today? Roll them to next week or hold till 3:59 and close then last minute?

I actually have some "roll forever" puts at 900 expiring today, and am in the same boat. I am trying to buy them back at 1 dollar and am willing to wait until close to decide what to do.

There is some vindication here to the idea that selling puts in a stock that really is terrific for the long term can be almost a no lose situation as long as you keep plenty of margin. Don't even know how many times I have rolled these guys, sometimes concentrating on cash sometimes on lowering the strike price but they are about to expire worthless. Come on 900 hold baby!

Got a bunch at 1050 coming due in May and I hope they are equally worthless come the 20th of the month.

In other news I have continued to accumulate in GOOG which looks totally sick and is under performing, as opposed to AMZN which has been flying since their split announcement. Cannot make sense of this at all.

 

[jaspa]

I actually have some "roll forever" puts at 900 expiring today, and am in the same boat. I am trying to buy them back at 1 dollar and am willing to wait until close to decide what to do.

There is some vindication here to the idea that selling puts in a stock that really is terrific for the long term can be almost a no lose situation as long as you keep plenty of margin. Don't even know how many times I have rolled these guys, sometimes concentrating on cash sometimes on lowering the strike price but they are about to expire worthless. Come on 900 hold baby!

Got a bunch at 1050 coming due in May and I hope they are equally worthless come the 20th of the month.

In other news I have continued to accumulate in GOOG which looks totally sick and is under performing, as opposed to AMZN which has been flying since their split announcement. Cannot make sense of this at all.

Keeping plenty of margin seems to be key. Those days when it was in the 700's don't feel great if overleveraged.

 

[bkp_duke]

What you guys would do with 900 CCs. expiring today? Roll them to next week or hold till 3:59 and close then last minute?

I have 880 CCs and and considering letting them execute, then "wheel" next week selling ATM puts.

Not advice.

 

[jaspa]

Are we seriously going to end this week with 4 consecutive up days averaging 4% moves? I had to roll my "sure thing" BCS -900/+1000 out a week this morning to $915 for a $1 credit. I need a reset of all my spreads so I can start fresh...

I'm still on the fence whether we're out of the woods yet for the market in general. This week is triple witching with large amounts of options expiring, with a lot of put protection that was geared towards the FOMC meeting. According to spotgamma, the market will be in a more unhedged position next week. If put protection is purchased (thinking about the ongoing Russia/Ukraine conflict), the MM will need to delta hedge, which would cause the market to dip again.

Giga Berlin is opening next week so could really be a wash for Tesla

 

[WattsHappening]

I have 880 CCs and and considering letting them execute, then "wheel" next week selling ATM puts.

Not advice.

Please keep us updated.

My plan was to do the same with my cc850s. But I couldn't get myself to do it and ended up rolling to 3/25 cc860s for $4.60 credit.

 

[bkp_duke]

Please keep us updated.

My plan was to do the same with my cc850s. But I couldn't get myself to do it and ended up rolling to 3/25 cc860s for $4.60 credit.

Few mins to close. Going to let them execute, look for a dip to sell puts early next week.

 

[CHGolferJim]

Would like to not have to roll 3/18 -c$840 and $870 this week, and close for nickels on Friday, so I can sit out the next 2 weeks. Positive macros from Fed and Ukraine plus Berlin/Austin look possible.

Looks like the post-Fed meeting reaction and possibly pre-P&D short covering started too early for the above to happen, so anticipating craziness at today's end of session which would squeeze the roll credit/strike improvement, rolled two sets of covered calls at 2:38pm ($898):

• 0318-c$840 to 0325-c$850 for a 9 cent credit (lol, get nuthin' for ITM)
• 0318-c$870 to 0325-c$895 for an 89 cent credit (maximizing strike improvement on a larger tranche)
• protecting significant unrealized capital gains in the strike improvements

Net cashflow vs. prices at 3:50pm was $1,410.

 

[Chenkers]

I closed my 900CC and 900/950 BCS for $2 and $1.5 on the last dip under $900. A slight loss but I'm happy to be clear of those and ready for it to fly next week.

 

[Knightshade]

Playing chicken sorta paid off for me on my various -900 calls.

For weeklies sold against LEAPS I was able to rebuy for a VERY tiny profit (like pennies per share) on a dip just under 900 with like 10ish minutes to close.

For weeklies sold against shares in a different account rolled to next week at 960 for ~2/share credit when it spiked to ~907 with like 3 minutes to close.

 

[dc_h]

CNBC stream was over a minute late! I was rolling a call and Fidelity says the market is closed and they're telling me 2 minutes. Sold those 900 CC's as cautious bet after taking some time off. If I sell puts at 900 for next week, I'd guess I'll end up well out of the money. The wheel doesn't work as well when the stuck runs up or down. If we have a down Monday, I'll buy back in.

 

[samppa]

I've also stopped selling spreads. All I have open now are covered calls (covered by shares) and naked puts. Puts are around 50% cash covered, rest with margin.

Makes rolling a breeze.

And I worry Putin might go nuts enough to drop a tactical nuke. That would cause a big fear reaction from the market. I don't think it's likely, but I do think that it has higher than zero chance.

 

[OrthoSurg]

Rolled my 900 CCs to 990 next week for $1 credit around 2PM. Happy I did.

 

[Cherry Wine]

Rolled my 900 CCs to 990 next week for $1 credit around 2PM. Happy I did.

I'd feel pretty good about $990 next week.

 

[WattsHappening]

I'd feel pretty good about $990 next week.

Last Friday, I said the same thing about $850 for this week.