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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Thanks for that pointer - I put on some 1200s for this week as well. I even got closer to 1.50 each!
Selling at 1200 at the end of this week would be ideal for me, and picking up $1ish per share is a pretty nice cherry on top. Most likely I'll just keep the beer and sushi money and continue running with ~no covered calls the next couple of weeks.
EDIT: @CHGolferJim view on price action the next few weeks is a much briefer and well articulated view that matches my own. I'm only grabbing these pennies in front of the steamroller because I like selling at $1200 on stuff I'm selling in the next month regardless.
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hitting key resistance at 1025, so 1200 mar 25 calls should be a good bet
EVNow
Well-Known Member
Depending on the IV, anywhere between 5 to10% OTM. Weekly on Fridays.
I've been cought couple of times when I roll up mid-week because the SP is shooting up (like this week) and then SP drops like a rock. Ofcourse, SP does drop more than 10% on some weeks, so chances of getting caught are ever present. I don't do anything around delivery number release and earnings to reduce that chance.
I'll post in a bit - how many weeks I've been caught in the last year.
ps :
In 2021 39 trades were fine. 19 trades were under water (and rolled).
This year all trades have been under water except one
All these are cash backed puts or stock backed calls. All under water ones were because of getting caught one week and takes weeks to recover. So, actual number of times my 5 to 10% OTM didn't work were only a couple - but they went so under water it took months each time to recover.
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chillerjt
Member
Sold my first cc on Monday. 03/25 $1100 for $0.70. Thought I would be safe since it was over 20% otm. Just sold a couple 03/25 $1200 for $1.20.
What a week to sell my first CCs! Just trying to get beer and sushi money but it’s quite stressful!
What a week to sell my first CCs! Just trying to get beer and sushi money but it’s quite stressful!
Knightshade
Well-Known Member
Assuming you don't want them called, you roll them out and often up.
For example I just rolled some 960s (that were 900s last week and rolled up/out for a net credit) to 985 for next Friday (again at a small credit).
In another account at the same time was able to roll some 1000 for this Friday to 1045 for next Friday, again with a small credit.
And you will get a better deal (strike improvement and/or credit) if you roll just before you go ITM. Of course, that usually happens earlier and things can sometimes reverse. You just have to do your best, and take what you can get, maybe keep records and learn about timing from wins and losses.
corduroy
Active Member
On that dip, I closed my -1060s for a small loss. First loss in 5 months since, you guessed it, Hertz. I am confident I could have managed these without any loss and they probably would have even been safe by Friday, However, last night I tossed and turned all night thinking about them. It's just not worth losing more sleep over. I shouldn't be selling calls in the first place since I am clearly not prepared to part with any shares. So chalk it up to a mental unforced error on my part.
I'll go back to what I'm good at, selling puts, even if I have to be patient and sit through 7 straight up days.
I'll go back to what I'm good at, selling puts, even if I have to be patient and sit through 7 straight up days.
NOT-ADVICEDepending on the IV, anywhere between 5 to10% OTM. Weekly on Fridays.
I've been cought couple of times when I roll up mid-week because the SP is shooting up (like this week) and then SP drops like a rock. Ofcourse, SP does drop more than 10% on some weeks, so chances of getting caught are ever present. I don't do anything around delivery number release and earnings to reduce that chance.
I'll post in a bit - how many weeks I've been caught in the last year.
ps :
In 2021 39 trades were fine. 19 trades were under water (and rolled).
This year all trades have been under water except one
All these are cash backed puts or stock backed calls. All under water ones were because of getting caught one week and takes weeks to recover. So, actual number of times my 5 to 10% OTM didn't work were only a couple - but they went so under water it took months each time to recover.
That notion of rolling up (down) an option to chase after a share price that is working in my favor -- I used to do that. Most of the time it has worked well and I get a few extra $$ of premium.
Most all of my big losses though start with that sort of a trade. My solution - I don't do that any longer
What I do - if I get that big move in my favor then take the early and quick close. Wait until at least next day (or a big reversal) and then open a new/replacement position, with a strong bias towards the new position being a week further out (new expiration date). In a strong up market like this I've been out of csp for most of the last week waiting for a reversal to sell new puts into.
That's part of the key here - being willing to be out of the market waiting for those reversals.
On the plus side, getting up and down moves paired up day after day ... you can open a put today, close that put tomorrow while opening calls;l then close the calls the day after while opening puts. I've had 5 or more cycles within a week / single expiration day (rare
). And that can be a lot of fun when it does happen.
As long as you're making money and learning stuff, one of the vectors to be learning is what kinds of positions are stressful and what aren't. And what makes them stressful, and how to make them not stressful.
One thing I've been learning along the way are positions that I don't want to open at all - evenwhen they work theytake too much energy and/or stomach acid.
john tanglewoo
2012 Roadster Owner
Sold my first call today after previously cashing in on sold puts!
Went with 4/22 1230 call, 4 contracts at a nice $19.00 premium.
After watching TSLA run 30% in a week, I'm comfortable thinking it won't run another 25% anytime soon. And if it does I'll roll.
Looking to close these out if I get to 60-70% profit.
Went with 4/22 1230 call, 4 contracts at a nice $19.00 premium.
After watching TSLA run 30% in a week, I'm comfortable thinking it won't run another 25% anytime soon. And if it does I'll roll.
Looking to close these out if I get to 60-70% profit.
john tanglewoo
2012 Roadster Owner
Patience is key for sure. I closed all my BPS/Put positions yesterday and just waiting for the next leg down. You know it's coming, your heart just does not want to believe it
.Option flow has been extremely strong this morning, total premiums were easily more than the last two days combined with a high call to put ratio. A lot of the high volume today was probably options related. This can unwind quickly. That bounce off of 985 was awesome though.
There are a variety of things that I do, and I think this generalizes.
In some cases I actually do want the shares to be called away. In that case - let 'em go. In this situation these are shares I want to sell regardless and they're on a timer for when the sale needs to be made (such as shares being sold to pay taxes).
Mostly though the typical solution is to roll the position out in time for a net credit, and often a strike improvement. I have a pretty strong bias towards rolling for the largest strike improvement and a small net credit, vs. a small strike improvement and a large net credit. Rolling the position can readily turn into 1 or more weeks without income, but for the most part, income 1 week in each month is enough to clear my income target / needs, so using the other 3 weeks (when necessary) to lower risk (in this case - better and better strikes) is a good choice. Most months the covered call sales generate income every week.
A++++++++NOT-ADVICE
That notion of rolling up (down) an option to chase after a share price that is working in my favor -- I used to do that. Most of the time it has worked well and I get a few extra $$ of premium.
Most all of my big losses though start with that sort of a trade. My solution - I don't do that any longer
What I do - if I get that big move in my favor then take the early and quick close. Wait until at least next day (or a big reversal) and then open a new/replacement position, with a strong bias towards the new position being a week further out (new expiration date). In a strong up market like this I've been out of csp for most of the last week waiting for a reversal to sell new puts into.
That's part of the key here - being willing to be out of the market waiting for those reversals.
On the plus side, getting up and down moves paired up day after day ... you can open a put today, close that put tomorrow while opening calls;l then close the calls the day after while opening puts. I've had 5 or more cycles within a week / single expiration day (rare
same experience here... don't chase premiums and risk a reversal - just stick to the original plan... get profits early and wait before doing the next trade - $$$ may be a lot smaller and that's ok, the important thing is the probability of success... be flexible to try different strategies depending on what the sp is currently up to.
i am daytrading 4/1 -c1100/+c1200 and that is a lot of fun
i am on vacation and traveling lots... reading this thread and trading and following the chart ate up my phone's data plan
i. need. a. starlink. before. i. get. disconnecte
Timing is important -- these rolls would have been a net CREDIT of $8k (+$16k) at today's closing prices (TSLA at $999 vs. $1029 at 10:33 AM). Oh well, could have gone the other way just as easily. Another data point illustrating rolling is favorable at lower SP.
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