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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
wait, what
i am trying to understand what is the profit angle here
Buy low, sell high. The trading range for these was $5.17 - $17.00 today. I picked them up for $5.83. I don’t really expect these to end up in the money, but I do expect a reversal. Also limited risk relative to selling bps.
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Hang in there everyone. I don't think we have seen capitulation from the weak TSLA longs yet, I think today was an attempt at that. It just seems too orderly. Either that or TSLA longs are gonna HODL and force MMs to use other ways to pull the stock down.
I have a gut feeling that we will see a 700$ print in the near term but markets are oversold so I expect a bounce Thursday/Friday. I actually did a couple of opportunistic plays this week. Sold TSLA shares on the way up and bought LEAPS on the way down. I also sold a few Jan 2023 600 Puts for 95$. I will be more than happy to take shares for a cost basis of 505$.
My moves this week in addition to day trading of bear call spreads and short calls.
1. Towards the end of the day opened 10X 05/20 -600/500+ for 4.90
2. Also have 5X -710/610 for this week expiry. I'm OK with taking assignment for 500 shares so not going to do anything to these. Will turn it into a wheel and enjoy the benefits of high IV.
3. Sold 15X RIVN 20$ puts just before market close for 2.36. I'm happy to own 1500 shares at this level.
Like I said above this selling was too orderly. There is usually a climax with TSLA so I'm still keeping plenty of dry powder/margin available.
I have a gut feeling that we will see a 700$ print in the near term but markets are oversold so I expect a bounce Thursday/Friday. I actually did a couple of opportunistic plays this week. Sold TSLA shares on the way up and bought LEAPS on the way down. I also sold a few Jan 2023 600 Puts for 95$. I will be more than happy to take shares for a cost basis of 505$.
My moves this week in addition to day trading of bear call spreads and short calls.
1. Towards the end of the day opened 10X 05/20 -600/500+ for 4.90
2. Also have 5X -710/610 for this week expiry. I'm OK with taking assignment for 500 shares so not going to do anything to these. Will turn it into a wheel and enjoy the benefits of high IV.
3. Sold 15X RIVN 20$ puts just before market close for 2.36. I'm happy to own 1500 shares at this level.
Like I said above this selling was too orderly. There is usually a climax with TSLA so I'm still keeping plenty of dry powder/margin available.
wait, what
i am trying to understand what is the profit angle here
He is trying to take money from the house
Or rather ES https://twitter.com/defnotES2?s=20&t=sda0K8atQQm6oipRkV0nAA
He’s been a bear since November. I kept reading and not believing until recently.
We might be close to the bottom. He targets Nasdaq 10-11K. I’m thinking from this level capitulation will take us below 11K.
That might be a decent trade near the close. Look at the buying in the last few minutes. Sell them during tomorrow’s bounce back. Everything looks oversold, but I thought that yesterday, day before, last week……. Today around $745 at one point, it actually looked like the SP was dropping vertically, and I thought that was capitulation. Wrong, more pain to $727. I expect tomorrow to bounce early, then drop again, maybe even below $700. Get ready with the buying. But what do I know? Just another cog in the wheel.
No one can time the markets…..but I’ve been blown way by ES for the couple months I’ve been following him. Mute Squawk and follow ES.
sp at lower BB
perhaps bottom/bounce at 700?
also, 5/20 and 5/27 biggest volume is p700
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www.investopedia.com
"Round Numbers
Another common characteristic of support/resistance is that an asset's price may have a difficult time moving beyond a round number, such as $50 or $100 per share. Most inexperienced traders tend to buy or sell assets when the price is at a whole number because they are more likely to feel that a stock is fairly valued at such levels. Most target prices or stop orders set by either retail investors or large investment banks are placed at round price levels rather than at prices such as $50.06. Because so many orders are placed at the same level, these round numbers tend to act as strong price barriers. If all the clients of an investment bank put in sell orders at a suggested target of, for example, $55, it would take an extreme number of purchases to absorb these sales and, therefore, a level of resistance would be created."
perhaps bottom/bounce at 700?
also, 5/20 and 5/27 biggest volume is p700
Support and Resistance Basics
Support and resistance are used by traders to refer to price levels on charts that act as barriers to the price of an asset from getting pushed in a certain direction.
"Round Numbers
Another common characteristic of support/resistance is that an asset's price may have a difficult time moving beyond a round number, such as $50 or $100 per share. Most inexperienced traders tend to buy or sell assets when the price is at a whole number because they are more likely to feel that a stock is fairly valued at such levels. Most target prices or stop orders set by either retail investors or large investment banks are placed at round price levels rather than at prices such as $50.06. Because so many orders are placed at the same level, these round numbers tend to act as strong price barriers. If all the clients of an investment bank put in sell orders at a suggested target of, for example, $55, it would take an extreme number of purchases to absorb these sales and, therefore, a level of resistance would be created."
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Well, that didn't age well, at all. Strike improvements one or two weeks out are looking slim. Going to see what I can move an any uptick or bite the bullet and close out the spread. Looking out a month or more, was it the middle month of the quarter being a better target than the first or third?
TheTalkingMule
Distributed Energy Enthusiast
Panic rolled my 5/13 BPS $650/550 to 6/10 $600/500.
At least I got $11.50 for my trouble and some nice strike improvement. Probably wouldn't have made more on that cash margin if I'd traded weekly anyway.
Let's see how this $700 battle unfolds....
At least I got $11.50 for my trouble and some nice strike improvement. Probably wouldn't have made more on that cash margin if I'd traded weekly anyway.
Let's see how this $700 battle unfolds....
I've got a p920 expiring tomorrow. I plan on taking the shares as I sold them over $1000 and made a ton selling puts up until this point. I don't see the point in rolling forward a month to nearly the same strike at the same execution price. I plan on selling calls on the new shares. Is this not a good decision for any reason? I'm not sure we're at a bottom yet but I have faith that when the dust settles TSLA will be one of the first companies to get some love.
Thank you all!
p.s. Not on margin...currently.
Thank you all!
p.s. Not on margin...currently.
jeewee3000
Active Member
bkp_duke
Well-Known Member
Similar position. I have a 905p expiring tomorrow, but I think I'm going to try to roll it 1-2 weeks, but not till tomorrow. See if I can get some strike improvement.
Not advice.
Profit secured -> sold these at $6.95 for a $672 gain. For once, my timing was perfect
Nice little 2-day trade. BTC the 0513$850 and 0520$900 at 97% profit for a minor give back of $272. Nice to bag something with all the carnage about. Hope to consolidate most of the above at 6/10 or 6/17 $860 on a Thu/Fri bump. Good luck y’all!
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Depends on where you think the SP will go, and how much risk you can handle selling CCs. I “think” we’ve seen the reversal and will continue up from here. Notice that we’ve broken $695-$700 twice in a year, coincidentally the SAME price as the S&P500 inclusion. As all the famous detectives always say, “I don’t believe in coincidences.” The last time we hit $700, the SP jumped $150 in a week and $400 in a couple weeks.
So, rolling the 920 out two weeks nets about $5 (strike improvement or premium). Again, coincidentally, selling a 5/27 920c also yields $5. So, to me it boils down to: Do you feel lucky, punk? Personally, I have 5/20 -p970-p1000s that I will be rolling back out, probably Monday.
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