Wiki Selling TSLA Options - Be the House

[intelligator]

Watch out for the temptation to mentally convert your buy-write shares into “core” shares if SP takes off, and perhaps a tendency to start assuming weekly SP increases.

Thanks for the helpful insight! Regarding the temptation, how easy to fall into that trap ... seems sensible to roll at $10 increments to capture credit until called away or in the event of a reversal where the calls could expire worthless, resetting with a new aggressive strike.

 

[jeewee3000]

TSLA's performance compared to the NASDAQ dropping since open. The capping is real. Very relaxed about my $780 cc's now.

 

[strago13]

how are 1100 CCs in December a problem?

They are not a problem for today, or probably for Q2, maybe after Q3? but I am hoping I will be able to buy them back. I was being a bit pedantic about it since I didnt have any CC to deal with before, but now I do.

 

[BornToFly]

Sold 5/27 $780 cc's at different premiums (some $0.8, some $1.05, more sell orders waiting).

Don't think we'll get that high today and I'm thinking these will expire worthless.

EDIT: $780 = 10.21% increase from yesterday's close of $707.73. Another 5% from where we are now around $740. Seems unlikely IMO (+10% days are few and far in between, even on rallies).

Agree. We are just following the Nasdaq with about a 2X multiple. Nothing TSLA specific happening.

 

[CHGolferJim]

They are not a problem for today, or probably for Q2, maybe after Q3? but I am hoping I will be able to buy them back. I was being a bit pedantic about it since I didnt have any CC to deal with before, but now I do.

Look at rolling down and in on SP dips……….I brought back quite a few contracts from August to 5/20 only to start all over again, it looks like

 

[TheTalkingMule]

how are 1100 CCs in December a problem?

It's a problem if we're at $1350 after 3Q earnings. That's a PE of about 112.

Obviously even worse if the market decides this earnings/revenue growth is worth a 135 PE.

 

[dc_h]

I'm off on vacation the next two weeks. Today's run up has been a relief. I bought back my BPS today after getting 2 800 puts assigned yesterday. I took a 20 point loss on 12 BPS, but 2 days ago was looking at a complete loss. I now have 5 740 CC's and 5 750 CC's. I'm not sweating either, after dodging a big loss on the puts. I could have rolled out two weeks and probably saved the full investment, but didn't want that hanging over my head while I'm on a big trip.
If I'm assigned on my calls, I'm thinking I may add more 320 leaps. The big question is whether to add Sep 22, or go out to 2023, which is obviously much safer. If rates have peaked, Shanghai stays open and Elon has really isolated the TWTR deal from his TSLA stock, which should be back to 1000 in the next 2 months.

 

[jeewee3000]

I'm off on vacation the next two weeks. Today's run up has been a relief. I bought back my BPS today after getting 2 800 puts assigned yesterday. I took a 20 point loss on 12 BPS, but 2 days ago was looking at a complete loss. I now have 5 740 CC's and 5 750 CC's. I'm not sweating either, after dodging a big loss on the puts. I could have rolled out two weeks and probably saved the full investment, but didn't want that hanging over my head while I'm on a big trip.
If I'm assigned on my calls, I'm thinking I may add more 320 leaps. The big question is whether to add Sep 22, or go out to 2023, which is obviously much safer. If rates have peaked, Shanghai stays open and Elon has really isolated the TWTR deal from his TSLA stock, which should be back to 1000 in the next 2 months.

Not to be a debbie downer, but how high we rally short term will mainly depend on macros: inflation/recession story on the one hand and Ukraine/Russia conflict on the other hand (and it's effects on scarcity of goods). I hope this rally sticks and is the beginning of the rise to ATH by the summer but it could be a simple bear rally lasting only a couple of days.

Either way, have fun on vacation!

 

[OrthoSurg]

I have a few 750s call spreads to manage today. The excitement never ends....

Can’t believe we are already at 750
I thought we would go to 580 :X

 

[ninpb]

Used the past 3 days of runup to roll out my original January BPS that were all rolled to 8/19/22 but wanted to give myself more time.
700/600P 10/21/22 for credit
750/650P 10/21/22 for credit
900/800P 3/17/23 for 3.25 debit.... and now it's 1.75. Oh well piece of mind.

Now to deal with a +1 8/19 1200C. I promise, if I get saved from this, only LEAPS from now on!

 

[dc_h]

Not to be a debbie downer, but how high we rally short term will mainly depend on macros: inflation/recession story on the one hand and Ukraine/Russia conflict on the other hand (and it's effects on scarcity of goods). I hope this rally sticks and is the beginning of the rise to ATH by the summer but it could be a simple bear rally lasting only a couple of days.

Either way, have fun on vacation!

I think inflation peaked. We still have supply chain issues, but oil production in the USA is picking up, the Strategic Reserve release will have some capping impact. Food inflation due to Ukraine will impact poor countries tragically, but I think will have limited impact on Europe and the America. Tesla will make 400,000 cars in Q3 and free cash flow will be over 7B. Hopefully we will have the rise we expected after Q1 earnings.

 

[jeewee3000]

Now to deal with a +1 8/19 1200C. I promise, if I get saved from this, only LEAPS from now on!

I don't believe you

 

[wnorris]

Not to be a debbie downer, but how high we rally short term will mainly depend on macros: inflation/recession story on the one hand and Ukraine/Russia conflict on the other hand (and it's effects on scarcity of goods). I hope this rally sticks and is the beginning of the rise to ATH by the summer but it could be a simple bear rally lasting only a couple of days.

Either way, have fun on vacation!

SpotGamma thoughts on the current rally and how to play it with call spreads.

 

[samppa]

Bought back my -c650 and sold one lot of shares. Same result as letting the call get assigned, but not having to wait for that to happen.

Looks like today is not a good day for selling puts for next week

I would wager monday to be red, since this is the 3rd green day in a row.. stilla lot of uncertainty around. Russian a-holes are blocking ukraines grain shipments and trying to blackmail the west, if this goes on it may lead to long famine in poor countries, which might affect recession.
Ironically, these are the countries that would not condemn Russia's actions in UN.

 

[mongo]

Bought back my -c650 and sold one lot of shares. Same result as letting the call get assigned, but not having to wait for that to happen.

Looks like today is not a good day for selling puts for next week

I would wager monday to be red, since this is the 3rd green day in a row.. stilla lot of uncertainty around. Russian a-holes are blocking ukraines grain shipments and trying to blackmail the west, if this goes on it may lead to long famine in poor countries, which might affect recession.
Ironically, these are the countries that would not condemn Russia's actions in UN.

Monday will be flat (Memorial Day).
Which means 4 day week which is usually bad, but worse when Friday is the day off (IIRC).

 

[AquaY]

It's a problem if we're at $1350 after 3Q earnings. That's a PE of about 112.

Obviously even worse if the market decides this earnings/revenue growth is worth a 135 PE.

yeah, I'm thinking that's not much of concern right now.
And IMO its pretty easy to manage if you don't wait until they are ITM.
We have 600 points to go

 

[corduroy]

My -745c's today are a real nail biter. Again, proof that I am not good at selling calls.

I am going to wait a couple more hours to decide what to do. I still think this might get pushed down to 735-740 to close. I might roll, but I am also thinking about letting them get called away and using the cash to buy some Jun $500 2024 leaps. Kind of a forced share to leaps conversion.

 

[BornToFly]

My -745c's today are a real nail biter. Again, proof that I am not good at selling calls.

I am going to wait a couple more hours to decide what to do. I still think this might get pushed down to 735-740 to close. I might roll, but I am also thinking about letting them get called away and using the cash to buy some Jun $500 2024 leaps. Kind of a forced share to leaps conversion.

I have -750cc I'm also watching. There is a little call wall at 750, so the SP might close at 749.98....

 

[BornToFly]

I have -750cc I'm also watching. There is a little call wall at 750, so the SP might close at 749.98....

Eventually I can't decide if I should take the loss and start fresh next week, or roll to around 815 for next week for even credit....

 

[MikeC]

I'm hoping for a higher than expected close today after this reversal this week (i.e. 760+) - with the reasoning that people who sold weekly CCs that are ATM now are holding out hoping they will expire, but they may be forced to close out at end of day if we get a rise, causing a small CC-covering cascade.

Every time I have been in that position, it feels like the SP never cooperates and lets me off the hook - I am forced to roll, and then the next week I get run over when the rally continues. I think call sellers are more vulnerable now than put sellers and MM find it easier to target them now that we're going back up.