Wiki Selling TSLA Options - Be the House

[BornToFly]

Word to the wise: potential stupid catalyst this week.

Elon is addressing Twitter all hands meeting on Thursday. He *might* announce the purchase deal is settled, reducing overhanging uncertainty about his potential further TSLA sales.

This would be on par with the Hertz announcement that sent TSLA up by over 12%. In other words, it shouldn’t matter much but if bulls are looking for an excuse to jump back in, this may suffice. And we are starting from a much lower base.

Of course it depends on the market reaction to the rate increase tomorrow. If it’s positive, these potential catalysts could reinforce each other.

If we do run, it might be temporary so I am likely to close some positions and cut my losses.

I know, lots of ifs. But I’m trying to avoid being run over by a dump truck running uphill or downhill. Again.

I'm with you. I'm more worried about my 800 calls than my 620 Puts for Friday. I might close them before the meeting tomorrow if I can for a profit. If the premiums stay high, I might roll the dice, keep them, and hope we don't climb more than 20% in 3 days.

Edit: The very fact that I wrote this pretty much guarantees the SP goes nowhere now....

 

[JustMe]

Looks like we completed the inverted head and shoulders that we discussed last week.

It’s interesting that the 21 day EMA has acted as a resistance level recently. (Red line). Green is 50 day EMA. If we break above this on volume, it would be a strong bullish signal of a sustained breakout. That would be about $720 now. If this happens, I’m buying $800 7/1 calls. Eyeballing the daily chart points to 850-900 level for near term target.

 

[juanmedina]

I sold a few $780 calls for $1-0.8 yesterday. At the end of the day they were at 40% profit ... I might close them early and hopefully reopen them after the meeting. So far the market is doing the opposite of whatever move I make so we may crash and not rally. 17% OTM seems so safe to me and I would love to have to roll them. I also have a 660 put for next with not the greatest entry that I would love to get rid of if we rally.

 

[corduroy]

Reminder, if you are in the US, estimated taxes are due today. Just paid mine

 

[BornToFly]

Reminder, if you are in the US, estimated taxes are due today. Just paid mine

Or wait until next year and pay a small penalty....

 

[vikings123]

Word to the wise: potential stupid catalyst this week.

Elon is addressing Twitter all hands meeting on Thursday. He *might* announce the purchase deal is settled, reducing overhanging uncertainty about his potential further TSLA sales.

This would be on par with the Hertz announcement that sent TSLA up by over 12%. In other words, it shouldn’t matter much but if bulls are looking for an excuse to jump back in, this may suffice. And we are starting from a much lower base.

Of course it depends on the market reaction to the rate increase tomorrow. If it’s positive, these potential catalysts could reinforce each other.

If we do run, it might be temporary so I am likely to close some positions and cut my losses.

I know, lots of ifs. But I’m trying to avoid being run over by a dump truck running uphill or downhill. Again.

I got burned on the call side badly during the previous FOMC move but I'm sticking to my guns and will continue to sell aggressive calls, 2:1 in favor of selling calls vs selling puts.. I know we are already down a lot but I expect the next few months to be very volatile for both TSLA and macros in general. You saw how they took down TSLA on two consecutive Fridays on essentially fake news.

TSLA looked really strong yesterday and may be because of the reason you wrote above. But we have seen this story before. TSLA looks strong compared to the rest of the market and a day or two later it just crashes on some fake news. It's almost like someone knows something and they are building liquidity and sucking in longs before the dump.

 

[bkp_duke]

Reminder, if you are in the US, estimated taxes are due today. Just paid mine

With all our losses, can we ask the IRS for "estimated refunds"?

 

[mrmtb]

MMs are playing games:

• today's PM High is the Close (just off by 37 CENTS)
• today's High is the same as yesterday's High (just off by 91 CENTS)
• today's AH Close is the same as last Fri's Open (just off by 15 CENTS)
• yesterday's Close is the same as today's PM Low (just off by 4 CENTS)

manipulation , no?

View attachment 816782

only off today's Close by 2.67!

What are you trying to show us? That they're keeping it in a specific range?

 

[Drezil]

What are you trying to show us? That they're keeping it in a specific range?

or they use it to "signal" their buddies where to do what .. ...

 

[Knightshade]

With all our losses, can we ask the IRS for "estimated refunds"?

Remember all cap gains are fully taxed the year they're realized.

But only $3000/yr in losses can offset normal income, rest has to carry over 3k/yr at a time.

Or wait until next year and pay a small penalty....

Yup, the penalty is hilariously small for the gains you can get keeping the $ invested most of the year

Sold -530/+430 for a seemingly crazy $2.40 (sticking to 20% OTM for put short legs from monday opens during these crazy times, esp when I can get effectively ~125% annualized ROIC profits on em)

Closed these at just over 80% profit a few minutes ago on a spike up to ~677... they would likely have been fine to leave but figured close enough going into FOMC today


**Edit- of course it spiked higher after, but oh well

 

[bballshinobi]

Reminder, if you are in the US, estimated taxes are due today. Just paid mine

Why pay that when you can just pay the interest + penalty? I am sure you can generate more return than that.

 

[BornToFly]

Remember all cap gains are fully taxed the year they're realized.

But only $3000/yr in losses can offset normal income, rest has to carry over 3k/yr at a time.

I've been told on TMC that capital gains are not "normal income," so if you have $200,000 in losses one year, and $200,000 in capital gains the next, you can take the entire loss the next year against those capital gains. Which makes sense, otherwise it would take you 66 years to carry over a $200,000 loss. Imagine a multimillion dollar loss.... (you would need to eat A LOT of plants to live long enough to write that off)

 

[Knightshade]

I've been told on TMC that capital gains are not "normal income," so if you have $200,000 in losses one year, and $200,000 in capital gains the next, you can take the entire loss the next year against those capital gains. Which makes sense, otherwise it would take you 66 years to carry over a $200,000 loss. Imagine a multimillion dollar loss.... (you would need to eat A LOT of plants to live long enough to write that off)

Oh, well, yes- but you still wouldn't get a "refund" in that case since you didn't have taxes taken out for the gains like you do ordinary income...

 

[Chicagoguy]

I've been told on TMC that capital gains are not "normal income," so if you have $200,000 in losses one year, and $200,000 in capital gains the next, you can take the entire loss the next year against those capital gains. Which makes sense, otherwise it would take you 66 years to carry over a $200,000 loss. Imagine a multimillion dollar loss.... (you would need to eat A LOT of plants to live long enough to write that off)

this is correct, the capital losses will offset the capital gains in a future year. Capital losses will only offset up to $3k of ordinary income, as someone mentioned

 

[Blue horseshoe]

this is correct, the capital losses will offset the capital gains in a future year. Capital losses will only offset up to $3k of ordinary income, as someone mentioned

To add to this any margin interest expense is applied against realized gains and any excess interest expense is also carried over to be applied against realized gains

 

[corduroy]

Why pay that when you can just pay the interest + penalty? I am sure you can generate more return than that.

It's more to keep my business square, if it was just investing I probably wouldn't pay them.

 

[john tanglewoo]

I believe it's 0.5% for a quarter, totaling 2% per year? Is that right?

All I know is if you're late on your main April 15th payment, they gouge you for 5% penalty.

I am used to always paying estimated taxes but with my quarterly bills >$50k, I may just start deferring and try to make that up.

 

[dmvevguy]

Or wait until next year and pay a small penalty....

This is what I do. Rather keep my capital.

 

[Chicagoguy]

I believe it's 0.5% for a quarter, totaling 2% per year? Is that right?

All I know is if you're late on your main April 15th payment, they gouge you for 5% penalty.

I am used to always paying estimated taxes but with my quarterly bills >$50k, I may just start deferring and try to make that up.

My accountant told me 3-4%. I talked to my friend who does this and his 2021 return showed the interest was 3% and penalty was 0.5% and he made no estimated tax payments.

I've always paid them in the past, but figured I can make more in the market or by buying TSLA at lower prices and waiting to see how it goes until next April. Another option is to pay some of the estimated taxes throughout the year, if you're looking to avoid a big tax bill in April

 

[bkp_duke]

Remember all cap gains are fully taxed the year they're realized.

But only $3000/yr in losses can offset normal income, rest has to carry over 3k/yr at a time.

It was 100% a joke. I'm well aware of the tax implications of these kinds of losses.