Wiki Selling TSLA Options - Be the House

[vikings123]

Sorry for the OT but my diworsification story went horribly wrong lol.

I have been making some money selling puts for high IV names and it was going great until I completely forgot that other companies have quarterly results too!

Yep you guessed i I had UPST 70$ puts expiring this week. I will take a big loss but yeah would have never left the positions open if I knew they had earnings report yesterday.

 

[CyberBro]

praying my 700p's expire worthless this week

 

[Yoona]

premarket

(edit) i think we need to look for volume today... less than average volume means this bounce will not last? in that case, i am STO CC today.

 

[Yoona]

(edit) i think we need to look for volume today... less than average volume means this bounce will not last? in that case, i am STO CC today.

41% in 5 mins , closing it soon coz i am going out for my daily walk

 

[juanmedina]

I sold 930cc for $2.2 at 43.7% profit so far.

edit: I closed them... I hope we go to the moon tomorrow after the CPI numbers like everyone is expecting.

 

[samppa]

Sold -p800 for this friday. Lets see if I end up with more cash or more shares - both outcomes splendid

 

[adiggs]

I don't like rolling Friday expiration options on Tuesday - too much time value remaining, and too much time to the new expiration. However with spreads rolling while still OTM also provides the best rolls. With shares only $30 OTM and 4 days remaining in the week, I prefer early and aggressive management in which I take a week off from earning money, in order to minimize the chance of losing money.


Therefore moved my 5/13 750/500 put spreads to 5/20 710/450 put spreads. Picked up 2.36 net credit which also, just barely, clears my target income per week. However I'll close early and probably earn almost none of that, so this is really buying an extra week on this position. Total credit is now about $8 in a position I opened at about $18.

I like 710 a lot better than 750, even if its a week further out.

 

[adiggs]

I don't like rolling Friday expiration options on Tuesday - too much time value remaining, and too much time to the new expiration. However with spreads rolling while still OTM also provides the best rolls. With shares only $30 OTM and 4 days remaining in the week, I prefer early and aggressive management in which I take a week off from earning money, in order to minimize the chance of losing money.


Therefore moved my 5/13 750/500 put spreads to 5/20 710/450 put spreads. Picked up 2.36 net credit which also, just barely, clears my target income per week. However I'll close early and probably earn almost none of that, so this is really buying an extra week on this position. Total credit is now about $8 in a position I opened at about $18.

I like 710 a lot better than 750, even if its a week further out.

Worth adding - I believe that the most likely outcome had I not rolled would be for these positions to be OTM at the end of the week and as worthless as I wanted to wait for them. This is purely risk mitigation with the $40 better strike price, here at the very low end of the recent trading range, representing a tighter and tighter winding of the spring, and therefore harder and harder for the share price to go down.

 

[jeewee3000]

I was holding some 6/17 1050cc's (for weeks already) which I closed today at around 80% profit. Not that I expect the SP to return to $1050 by then, but I think it is very likely we will bounce at least partially (for example to $900), in which case I can sell the same call again for a higher return. (Or sell a higher striked call for the price I bought the calls back for)

Short term, I also see nothing but doom and gloom, but on a higher level I notice that whenever I've had this feeling I can never predict the bounce.

Not saying it's coming soon, but it very well could happen (even though I expect it will have to be macro related and the entire market turns around).

 

[adiggs]

I was holding some 6/17 1050cc's (for weeks already) which I closed today at around 80% profit. Not that I expect the SP to return to $1050 by then, but I think it is very likely we will bounce at least partially (for example to $900), in which case I can sell the same call again for a higher return. (Or sell a higher striked call for the price I bought the calls back for)

not-advice
Something I could finally articulate this morning, though I've been thinking about it and behaving like it for months: the primary benefit of the early close, especially on +80% positions, is NOT the realization of the profits (at least to me).

The primary benefit is what it does for the next position. If we get a $50 bounce some day this week (and today started +$35) then you are in position to open a replacement position. You also get lower risk by closing the winning position, before shares can reverse and turn a winning position into grief.

 

[Yoona]

daytrading, 27% in 4 mins, closing it soon

 

[JustMe]

daytrading, 27% in 4 mins, closing it soon

View attachment 802585

In times like this, this is the way

 

[scubastevo80]

Nothing from me this week - sitting on a rolled 5/13 -825/+725 that I'll be looking to roll again. For today, not touching it as I don't think we go sharply lower. If we are above 800 tomorrow I'll likely look to roll down and out another week.

 

[ReddyLeaf]

I can’t believe that I’m actually selling CCs at the $865 level, but done this AM peak, bought c850s, and c855s during the dip, for less than I sold the c865s. So, once again, in a little call credit spread, so can’t lose this week. Also, picked up another two shares at 781.xx. Officially, now scraping the bottom of the barrel for free cash, less than $500 in one account and $2000 in the others. Sure wish for a quick return to $1000, but it ain’t happening anytime soon.

 

[Blitz3RS]

Good day everyone, at the morning open did x9 STO 920Cs for 2.7 right at open and promptly closed them 30 minutes at 1.5 prior to heading out for work today.

What's everyone's thought about possible reaction to CPI numbers for tomorrow? Priced in/expected to be "bad"? Tempted to buy some long calls hoping for a nice green rip.

 

[corduroy]

I don't like rolling Friday expiration options on Tuesday - too much time value remaining, and too much time to the new expiration. However with spreads rolling while still OTM also provides the best rolls. With shares only $30 OTM and 4 days remaining in the week, I prefer early and aggressive management in which I take a week off from earning money, in order to minimize the chance of losing money.


Therefore moved my 5/13 750/500 put spreads to 5/20 710/450 put spreads. Picked up 2.36 net credit which also, just barely, clears my target income per week. However I'll close early and probably earn almost none of that, so this is really buying an extra week on this position. Total credit is now about $8 in a position I opened at about $18.

I like 710 a lot better than 750, even if its a week further out.

I did the same. Was going to wait for roll Thursday, but in this market, today might be our only chance.

I rolled my -790/690s to next week -760/660s for a small credit.

This position was caused by me trying something different than my usual "safe" trades. The pesky trade started out as -870/770 about 10% OTM, I then rolled down to -830/730, then -790/690, and now -760/660. I've been collecting decent premiums on the way down, but at this point I just want out.

 

[adiggs]

I did the same. Was going to wait for roll Thursday, but in this market, today might be our only chance.

I rolled my -790/690s to next week -760/660s for a small credit.

This position was caused by me trying something different than my usual "safe" trades. The pesky trade started out as -870/770 about 10% OTM, I then rolled down to -830/730, then -790/690, and now -760/660. I've been collecting decent premiums on the way down, but at this point I just want out.

I know that 'just want out' feeling. On the plus side here the series of rolls are illustrating just how far a position can be carried.

The original 870 put that was 10% OTM - shares were about 960 then? You've been able to roll that position down with the share price touching -$200 and the latest roll has you $50 OTM. It doesn't mean that you'll be done with this position next week, but even an objectively bad situation is looking like it can be break even or profitable. In a 4 week, $200 move against.

Or at least that's how I'm reading it.

 

[adiggs]

I can’t believe that I’m actually selling CCs at the $865 level, but done this AM peak, bought c850s, and c855s during the dip, for less than I sold the c865s. So, once again, in a little call credit spread, so can’t lose this week. Also, picked up another two shares at 781.xx. Officially, now scraping the bottom of the barrel for free cash, less than $500 in one account and $2000 in the others. Sure wish for a quick return to $1000, but it ain’t happening anytime soon.

Can you walk through that in more detail? I like the sound of this - looking for more details from what you've been doing.

The net position for this week is you've purchased 850 calls and sold 865 calls. That position can earn as much as $15 and is typically entered as a debit spread.

By opening those two positions at different times you've entered that position for a net credit. End result is you'll earn the net of the debit + credit, with an upside of $15 - am I reading that right?


Did you buy the 850s first, and then sell the 865s later? Or sell the 865s first, and then buy the 850s later?

Is this something you've been able to do before? Thx!

 

[Discoducky]

All non-tax accounts...

TL;DR - I like 'the wheel' and selling CCs when we are near/at ATH's and selling puts when below 200MA.

Longer version...
I might be a proud owner of 400 more shares if we finish below $820 this week due to my 4x $820 puts. And that's ok with me.

Last week I obtained 200 more shares at $880 and that too was ok with me.

This past Jan I sold ~1000 shares around $1000 due to getting assigned on CCs. That was also ok with me.

 

[adiggs]

All non-tax accounts...

TL;DR - I like 'the wheel' and selling CCs when we are near/at ATH's and selling puts when below 200MA.

Longer version...
I might be a proud owner of 400 more shares if we finish below $820 this week due to my 4x $820 puts. And that's ok with me.

Last week I obtained 200 more shares at $880 and that too was ok with me.

This past Jan I sold ~1000 shares around $1000 due to getting assigned on CCs. That was also ok with me.

More aggression on my part - this is the same thing I've begun doing. The more aggression bit is that I'm actively selling both puts and calls at all share price levels.

However I'm looking to take assignment on some puts at lower prices (as you're doing) and take assignment on some calls at higher prices (as you're also doing). Within my income strategy if I can have a subset of total positions see $100-200 share price swings (for example - buy at 850, sell at 1050), that $200 strike to strike gain overwhelms any income generation. $200 when my minimum standard is $2/contract/week is 100 weeks of income. Even at my preferred level ($5/week) that's still 40 weeks of income, over and above the weekly income from the option sales.

So its not a focus, earning that strike to strike gain. But it sure is a sweet kicker . More importantly by at least thinking about the strike to strike changes, hopefully I can avoid the strike to strike losses that can arise on more rapid turns on the wheel.

Bigger context for me - I want to go no lower than 1/2 account value in shares as we near ATH territory and will go up to 75% in shares at lower prices. That range from 50 to 75% of account value in shares amounts to what I'm using the wheel on.