Been having similar thoughts.. might even be worth exploring to buy a straddle.The SP is so volatile right now, I wonder if buying options is better than selling at the moment. It might be safer and more profitable right now to buy a 10% OTM call and/or put when the SP trends in the opposite direction early in the week, and sell when you hit XX% profit....
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I've got -c690 for this friday expiry, so kind of in the same boat.. was gonna pair with puts tomorrow, thinking it would go red, but not so sure about it. I looked that from friday's option prices, could roll these out by one week to -c710 for credit.
Here's me desperately looking for the "embarrased face" emoji!! You are of course correct. No more pre-bed math for me. So effectively the buy-write and CCP are "identical" for all intents and purposes.
I might look to close a couple of them out, 5x is a bit too many if we run up like crazy... if the SP stays flat then I can close them out without a (weekly) loss, if it pops a bit (which looks likely based on today's EU/token action and news) then maybe a single -p900 to generate the funds...
Don't know, will see how it looks tomorrow
bkp_duke
Well-Known Member
The SP is so volatile right now, I wonder if buying options is better than selling at the moment. It might be safer and more profitable right now to buy a 10% OTM call and/or put when the SP trends in the opposite direction early in the week, and sell when you hit XX% profit....
Been seriously eyeing LEAPS. Kicking myself for not loading up on them when the share price was 620.
Cause you'd be kicking yourself if the stock dropped below that...
boys, i need your help bigly
my former boss asked me to go back to work, so i need to unretire
it's 9-5 onsite and personal electronic devices are not allowed except during the lunch break
that means i can't trade on the dips and peaks anymore... the best would be to open contracts during the breaktime (but prems won't be the best)
and they would have to be DOTM and directionless since i can't babysit
"set it and forget it" would be too dangerous nowadays
for you all who are still in the workforce with the same dilemma, how do you fix this problem? (do a market order sunday night? that would be too risky)
help meeeeeeeeeee
TIA!
my former boss asked me to go back to work, so i need to unretire
it's 9-5 onsite and personal electronic devices are not allowed except during the lunch break
that means i can't trade on the dips and peaks anymore... the best would be to open contracts during the breaktime (but prems won't be the best)
and they would have to be DOTM and directionless since i can't babysit
"set it and forget it" would be too dangerous nowadays
for you all who are still in the workforce with the same dilemma, how do you fix this problem? (do a market order sunday night? that would be too risky)
help meeeeeeeeeee
TIA!
bkp_duke
Well-Known Member
Below 620 in 25 months? I like those odds (that it is not).
I was talking better short term price, not being pessimistic about long term outloook.
Bought more things at 715, and 915,..... and 1050 ....
Man that’s quite an adjustment. I am not in that situation, I moved to full time day trading.
But if I did have to do that I would look for good trades during the market hours I had access to. Avoid getting into trades just due to time pressure but be decisive about good opportunities - and set automatic closing price you’d be satisfied with. I don’t know your time zone but the first hour of trading is the best for day trading. Lots of volume and relatively quick moves.
In this environment I would be conservative about opening positions I couldn’t monitor in real time.
Congratulations? And good luck
So basically a married put is when you buy the shares but also at the same time buy put options too. So in this case it would be like entering TSLA at 760 for 100 shares and buying a 760 put expiring a few months down the track (if it's for a trade a few weeks down the track).
That way 2 scenarios play out. The stock trades up or sideways, in which case you lose money on your put but you have bought the bottom. In the case of trading up you are making money on the shares.
The stock trades down, so you start making money on the put.
It's also extremely unlikely TSLA trades sideways given the market volatility.
Your trading platform doesn't do conditional trades? Wondering if you could set a chain, but itxs still firec and forget...
Nice of you to exit retirement for them.
Got shares called away Saturday morning at 755 , reserving some of the proceeds to pay the taxes on long term gains and hoping to get back in for the same number of shares, less the number required to satisfy the bill. What I'm not clear of but will get clarity in the morning is what lots the shares sold from. I thought that I'd get to choose the lots from an accounting perspective, Fidelity notes that and accounts for it the same per the statement. Is that a correct assumption? I've not been called before, apologies if this is so trivial that I should know.
Go to Account Features and see what setting is being used for your tax lot assignment (First In First out, Last In First Out, or highest purchase price but long term, etc). If it's not what you want, call them first thing and tell them what tax lot you want to use. They should still be able to change it at this point.
You get into problems fast.. like error messages like "you cannot have orders open on both sides" if you ladder into a trade (i.e. Buy at a, b and c - but only a and b fire before the reversal and you want to have an automatic profit-taker if the sp reverses.. so you cannot open the profit taker on a while still having b and c still open)..
Gotcha.
I've looked at the available order types, but hadn't tried making truely complex one-cancels-other + one-enters-other chains.
I mean .. I CAN program around that with IB-API from Interactive-Brokers .. and provide such a software ..
You cannot have the orders "submitted", but you can have a program track that things and then "submit" the order if one side comes close (i.e. within 1%) and "pause" the order again if the price moves too far away (to have the other orders ready to "submit").
Also algotrading with decent strategies of people here could be possible in a semi-automated way..
Like: Track position X by % amount, then do $stuff.
Think like: Sell a CC @$3, stock moves. CC is worth $1.5, track happens with i.e. $0.2. things move down to $1.1, then swing back up. At $1.3 ($1.1 + 0.2) an "action" gets triggered. Actions like "close it ASAP", "Roll out 2 weeks for minimal credit ASAP", "Roll out 2 weeks for max gain", "close this CC together with the underlying call", "form a spread to minimize risk but not close the position completly for at max $0.5"..
Not this awful "complex-order" interface that does not let you do the things you want to do half of the time .. -.-
scubastevo80
Member
Just thinking out loud - hasn't the market factored most/all of this in? With growth stocks being 50-80% off their highs, are we really expecting another meaningful leg down for high quality companies? If Tesla was trading in the $525-550 range, wouldn't many of us be selling kidney's to buy more stock? Is GOOGL at a PE of <15 reasonable if it touches $2000? Is it reasonable relative to my XEL or LNT stock which both trade at forward P/E's of ~22?I'm on the other side of this - that QT is going to be a bigger deal than JPo has guided, but whatever side I take, I would be guessing. My reasoning (which really doesn't make me right) is that simply letting more bonds expire than are being purchased (to net out at the shrinkage planned) doesn't make this a change-free situation.
These bonds are all in the category of things that get refinanced. So a bond rolls off the Fed balance sheet, and is resold (at the new interest rate) to the private sector. Ownership (lender) is being shifted from the Fed to the private sector. As a simple example should I go buy one of these $1M bonds, then my personal balance sheet has $1M less $$ to own Tesla with (just to make it really personal
My personal worry is that this process in reverse will be sucking so much money out of the economy that we'll reverse the epic stock market run of the last couple of years. In the same way that that QE / stimulus added $6T to the economy and has been important to that stock market run, I worry that QT will have the same relationship except in reverse.
What I can't do is provide any sort of guess as to the size of that impact on TSLA. That's the primary part that I care about. I suppose that my best guess of the moment is that I could see us dropping into the 500s, I don't see 400s, and I mostly expect we'll live in the 700/800/900s for a year or more. That stock price level will get pushed up from below as long as Tesla continues to report increasing EPS / revenue / deliveries each quarter. Keep the 50%+ growth going, with the demonstrated (and improving profitability) and the market will increasingly reward TSLA as a winner within the larger market malaise.
I'm trying to take emotion out of the equation and ask myself everyday - if I had $10,000 to buy stock right now, what would I buy? Alternatively, do I sit on the cash and wait for better prices (assuming I have the belief that there's still too much negative overhang on the markets with Covid, Russia/Ukraine, supply chain issues, inflation, etc).
Another leg down is possible. Major sell offs don’t happen because people want to sell but because they have to either to reduce risk of total loss or margin call. Think multi billion dollar class hedge funds that are leveraged out the wazoo. This is known as capitulation, and some experts believe we haven’t seen that yet.
I’m working to protect our account from a fall to the $500’s. But I don’t expect we will go below $625 in the near term.
Of course you’re right that these are great prices for quality companies and a lot of wealth is created for those who are in a position to buy at the bottom.
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