Wiki Selling TSLA Options - Be the House

[CHGolferJim]

I sold 8x $740 at $1.03 for tomorrow... hopefully I don't regret this

It is starting to feel like the downtrends are plateauing or reversing. I’m no expert on the bond market, but there do seem to be indications of lessening inflation and a slowing of interest rate increases.

 

[JustMe]

Done trading for the day in 30 minutes

2x 640/580 $7.09 -> $6.28
2x 630/580 $5.72 -> $3.00
2x 620/580 $3.56 -> $1.56
1x 610/550 $2.49 -> $2.00

2x 700/760 $4.53 -> 4.22

6/3 675c $27.65 -> $27.42
(Chickened out, dang)

** -> bought back 150 TSLA at $661

This is looking like a dangerous day to trade, steam rolling up (yay) but hard to pick the top. So I’m taking my marbles and going home

 

[TheTalkingMule]

I sell my single 5/27 $750c yesterday at a loss as an homage to @adiggs conservative strategies, now they're out here doing all sorts of wacky casino buy/sell shenanigans!

Shameful!

 

[CHGolferJim]

Done trading for the day in 30 minutes

2x 640/580 $7.09 -> $6.28
2x 630/580 $5.72 -> $3.00
2x 620/580 $3.56 -> $1.56
1x 610/550 $2.49 -> $2.00

2x 700/760 $4.53 -> 4.22

6/3 675c $27.65 -> $27.42
(Chickened out, dang)

** -> bought back 150 TSLA at $661

This is looking like a dangerous day to trade, steam rolling up (yay) but hard to pick the top. So I’m taking my marbles and going home

How interesting that the SP trend of the past hour is up while share volume/minute is down.

 

[wnorris]

It is starting to feel like the downtrends are plateauing or reversing. I’m no expert on the bond market, but there do seem to be indications of lessening inflation and a slowing of interest rate increases.

It seems like the market is looking for an excuse to rally. We have been in "oversold" conditions for a while now. Hopefully, if we do get a rally, it has some legs to it. I'd love to sell some calls with an extended DTE instead of walking the week-to-week tightrope.

 

[ReddyLeaf]

How about a nice big 6mo rebound? I would take $700+ for Friday, $740 would be even better.

Anybody need anything else?

 

[MP3Mike]

As an FYI I had some 6/3 895 puts assigned today...

 

[Blue horseshoe]

As an FYI I had some 6/3 895 puts assigned today...

All of these early exercised puts is very strange..

 

[dc_h]

I sold 8x $740 at $1.03 for tomorrow... hopefully I don't regret this

I hope you do . It is a stretch, but I would love to get ITM on my BPS and get to a roll.

Glad I bought my 700 and 720 CC's back at the open yesterday.

 

[Chenkers]

As an FYI I had some 6/3 895 puts assigned today...

I had a couple of 1080's exercised earlier this week that were Jun17. (This time I sold the shares, used the 1040P margin boost to sell extra BPS and then later sold the BPS and 1040P's for around $3k extra than simply exercising the 1040P's)

I've since moved the 1080's out to OCT 1100's keeping the spread width the same. I also moved some others out to JUL15 and again moved them to an even '00 strike number.

This last bit is important to reduce the chance of being exercised. As of yesterday there were 24 Puts at the 895 strike for 6/3. If you have been able to move them up to 900 you would be among 378 Puts and less likely to have your number come up in the options exercise lottery. Even better to have them a few more weeks out as they're cheaper to roll and more time value.

 

[BornToFly]

If you bought an OTM Call a month out, and thought with ten days to go that the stock was going to keep climbing, would you sell it or exercise it early? Of course not.
A put buyer wouldn’t get out of their Put early if they thought the SP was going to keep dropping.

Example: You buy a 900 strike Put when stock is at 950. Stock drops to 650 and time value goes to zero. You have a $250 profit - original premium and - sell bid/ask spread If you sell to close. If you think the stock will drop further, you hold it and let the stock drop to $600 for another $50 profit. If you are afraid the stock is going to $750, you exercise the option and lock in the gain, or sell to close it if you can find a buyer. If all the buyers think the SP will climb, you will lose a couple dollars selling compared to just exercising the Put because of bid/ask Spread.

That is why I think all the Put assignments with more than a week to go is bullish. Theory looks good based on today’s price action. I closed some of my Jan 2024 CC that I had sold when the stock was at 740 for more cash/margin for a profit since I don’t think I need the extra margin anymore.

 

[bkp_duke]

Call to Put ratio today is 1.42 : 1

Bullish!

 

[OrthoSurg]

Sold some 5/27 $750cc's @$1.00 each.

I almost closed my 1500 CC August to sell 700 CCs for this week.

However I didn’t want to get steamrolled. So I just did nothing.

Now that my margin is starting to expand again I will be able to close them. I will be able to close also my protective puts I bought for July at with 370 strike price once we approach my break even price of 800 for my -p1050 expiring in July.

I now follow this blindly

 

[FlamingPIG]

Fyi my 2x 850p may 27 assigned

 

[ninpb]

Anybody have experience with Vanguard IRA account and how fast/slow trades settle?
With no rolling available, I have a 5/27 715C that I want to:
1. sell CC 6/3 730 strike improvement for 21
2. buy to close 5/27 715C for 14

I don't want to mistakenly sell 200 of my shares if vanguards timing is slow. I'd rather just wheel it.

 

[adiggs]

Anybody have experience with Vanguard IRA account and how fast/slow trades settle?
With no rolling available, I have a 5/27 715C that I want to:
1. sell CC 6/3 730 strike improvement for 21
2. buy to close 5/27 715C for 14

I don't want to mistakenly sell 200 of my shares if vanguards timing is slow. I'd rather just wheel it.

I'm no help on the Vanguard question.

However maybe I'm not understanding what you mean by "just wheel it". If that's the Wheel strategy that will mean being assigned on the 5/27 715cc at expiration (or early assigned), and that will specifically mean selling 200 shares.

If you are buying and selling call options, I don't see any mechanism by which you accidentally sell 200 shares.


The risk to Vanguard's timing being slow, and forcing your roll into two transactions (that I can see) is the potential slippage between the two transactions. This assumes you have the resources to either (1) sell the replacement cc first or (2) buy back the current cc first. If you don't have the resources to do either of these first, even for 1 contract, then you're stuck without the roll transaction regardless of the broker. Maybe a phone call to their trading desk?

If you do have the resources for 1 or the other, then the end result will be the same. Achieving that end result may be many transactions (as many as 1 transaction per contract, 2 transactions per position being rolled), with the share price (and option prices) changing constantly as you work through the roll. Who knows - those constantly changing share prices may net out in your favor!

 

[juanmedina]

Anybody have experience with Vanguard IRA account and how fast/slow trades settle?
With no rolling available, I have a 5/27 715C that I want to:
1. sell CC 6/3 730 strike improvement for 21
2. buy to close 5/27 715C for 14

I don't want to mistakenly sell 200 of my shares if vanguards timing is slow. I'd rather just wheel it.

You have to call Vanguard to roll options. I have up on Vanguard along time ago.

 

[MP3Mike]

Just as an FYI next week is a short trading week, as Monday is a holiday...

 

[ninpb]

You have to call Vanguard to roll options. I have up on Vanguard along time ago.

Yup, just got off the phone. multi-leg trades have to be made over the phone.

 

[ninpb]

I'm no help on the Vanguard question.

However maybe I'm not understanding what you mean by "just wheel it". If that's the Wheel strategy that will mean being assigned on the 5/27 715cc at expiration (or early assigned), and that will specifically mean selling 200 shares.

If you are buying and selling call options, I don't see any mechanism by which you accidentally sell 200 shares.


The risk to Vanguard's timing being slow, and forcing your roll into two transactions (that I can see) is the potential slippage between the two transactions. This assumes you have the resources to either (1) sell the replacement cc first or (2) buy back the current cc first. If you don't have the resources to do either of these first, even for 1 contract, then you're stuck without the roll transaction regardless of the broker. Maybe a phone call to their trading desk?

If you do have the resources for 1 or the other, then the end result will be the same. Achieving that end result may be many transactions (as many as 1 transaction per contract, 2 transactions per position being rolled), with the share price (and option prices) changing constantly as you work through the roll. Who knows - those constantly changing share prices may net out in your favor!

Just got off the phone. Funds from selling second(6/3) CC is available immediately to close the first/5/27 CC.
What I meant is I only want to risk max 100 of my shares at any time. If that was the case, I'd rather let the first CC assign and just wheel it and not write the second CC to manually roll.