My wife keeps telling me TSLA can’t go down much more because it is the greatest company of a generation. She’s a permabull. I tell her all the time she is right and the market is wrong.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
My wife keeps telling me TSLA can’t go down much more because it is the greatest company of a generation. She’s a permabull. I tell her all the time she is right and the market is wrong.
Has been for weeks. It is the usual "we go up after quad-witching as much call-pressure is being relieved"-play ..
I also count on that being true
Stock Option Max Pain - take a look at 700, 750 and 800 strikes open interest.. all show similar behavior over time
TheTalkingMule
Distributed Energy Enthusiast
Yesterday that spike at $810 was sitting there alone and max pain was.....$810.
Looks like folks are trying to piggyback on that trade with $790c and $800c. Brought max pain down to $790.
Makes sense. My opinion that 2Q will be used as a launch point for MM's to steamroll CC sellers is over-documented at this point.
corduroy
Active Member
On the dip I sold the off the +640p of my 6/17 640/-740 BPS for $20. I'll now manage the -740p as a CSP.
Although I would rather not be in this position, I have used this management technique a couple times now and so far so good. I like locking in the cash, so if the SP does recover, the total credits are much higher than the original BPS would have been.
I'll keeping pushing this out a week to avoid assignment, but if I do get assigned I plan to treat it as a forced buy-write and sell aggressive calls against those shares.
Although I would rather not be in this position, I have used this management technique a couple times now and so far so good. I like locking in the cash, so if the SP does recover, the total credits are much higher than the original BPS would have been.
I'll keeping pushing this out a week to avoid assignment, but if I do get assigned I plan to treat it as a forced buy-write and sell aggressive calls against those shares.
TheTalkingMule
Distributed Energy Enthusiast
You're in this thread. You know exactly why!
Tesla is broken with the Twitter and Bitcoin crap on its shoulders. I hope the Master of Coin had a stop loss on Bitcoin lol. Nio now at +13.5%
If we are down 7% on red days and up 0.13% on green days while XPEV is +7% and Nio is +13%, I will start to have liquidity issues. The stock has to recover at some point. Sold all my Bitcoin and Ethereum in February, don’t like the fact that crypto is capping my most profitable stock in my portfolio.
Not trying to get too off topic but @heltok pointed out yesterday their holdings are like .05% of TSLAs market cap.
Thank God. I can't loose money that day....
The high CPI print invalidated the ihns pattern. Best we can hope for right now is a double bottom once be bounce off 625. Target still 970.
The most logical direction post FOMC is UP. Whether the market can follow through has to wait till Monday to be seen. Are we gonna have a March or a May FOMC?
bkp_duke
Well-Known Member
braver than I, with the Fed meeting tomorrow, I'm looking to not have anything open
bkp_duke
Well-Known Member
Sold 550/575 BPS 6/17 on the drop this AM (missed the bottom) for 2.35. Now debating on when to close. . .
You are absolutely correct.
The position is made up of two components. The short call that I opened at $42 and closed at $8 generated $34 in realized profit / income. Meanwhile the shares purchased at $722 are showing an unrealized loss (shares at 660) of $62. EDIT to add: looks look my current overall break even on the position is $678.
I will be updating my tracking later today to see what the overall position looks like. There was a previous call opened and close, but I can't remember if it was a $8 or $12 profit. That info will help me decide what new position to open. I see shares are now +29 while I've been eating breakfast - I was hoping to sell a replacement position today and it looks like that is going to happen. Now the decision is what to do - something more like 690 for $15, looking to also gain a continued share price increase up to and beyond 690 by end of week.
Or more like 650 for $40 looking for another reversal and maxing out the income in that direction (further lowering break even). Got to do some math to see which way is better for me.
Or even, if the shares get to closer to 690 -- just sell the shares, take the $30 loss along with the $50(ish) gain for a net $20 over 2 weeks, and look for the next drop to rebuy the shares / restart the buy-write at a lower share price.
The main thing to keep in mind with this position - I'm doing these buy-writes in lieu of cash secured puts. The backing is the same (shares purchased with cash, vs. cash) and the logic is the same; open on a down day. Actually the logic on the close is different - probably hold until close to expiration when time value is close to 0 and close then. Whether shares are up or down. Bias towards early close when shares are down significantly.
Interesting to me is just how peaceful I'm finding these positions. The market opens here at 6:30am and I'm frequently up, at least briefly, around then to see how the day starts for my positions. I slept in until 9am this morning (similarly yesterday, and last week) as I'm getting a good result whichever direction the shares go, and I know it emotionally - not just logically in my head.
Last edited:
Similar threads
