Wiki Selling TSLA Options - Be the House

[Knightshade]

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

FWIW the big tax bill in April is a great opportunity to do a few large credit card signup bonuses, which can often get you 10% or better back on your spend... so even paying the 1.9x% credit card fee you can skim some decent profit off of it... (and a lot better than 10% return if you're someone who travels in the pointy end of the plane occasionally)

 

[Max Plaid]

Folks - maybe not the best place to discuss the peculiarities of the US taxation system?

 

[Yoona]

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.

thanks for the warning - i closed all my CCs.

in TSLA history, only 16 times did the sp climb more than 20% in 3 days.

scary that 2 of the 16 were on this year and just recently:

• Feb 24-28 Thu-Mon, 24.28%
• May 25-27 Wed-Fri, 21.76%

 

[juanmedina]

Will there be and IV crush after the meeting? why is the IV so high? we are still at 96%.

I closed my calls also... please go up haha

 

[OrthoSurg]

Sold my first CCs in 4 months and the stock goes up against me

Will do that more often

 

[Max Plaid]

Surprised to see markets rallying ahead of FOMC... they going to continue, or crash, that's the question... both sides I'll win, ergo also lose too, so some work likely to be done end of this week...

Does very much look like I'll be buying 7000 $AAPL shares @$150 end of this week on account of 70x -p150's turning very sour - last week they were looking to go OTM, meh! I'm going to allow exercise rather than take a realised loss - I think there's some calls to be sold against those in the coming weeks/months...

And when will GOOGL start climbing into the split which is just a month away now...?

 

[ice]

75bps hike...

 

[CHGolferJim]

All my remaining CC expired last week, and I haven’t resold. Feels odd to be out of the action, but probably good with Fed and triple witching uncertainties. Watching for lessons to be learned, itching to get back in.

 

[jaspa]

75bps hike...

For context.. last 3 days after FOMC -
Jan 26 - S&P500 rallied +250pts in next few sessions..
March 16 - S&P 500 rallied +200 points in next few weeks..
May 4 - S&P 500 rallied +150 points in 2 days and then crashed.

 

[ReddyLeaf]

Well, this AM I realized that I was only 8 shares short of another lot, so…… Sold one 6/24 -c715, used the cash to buyback/roll 6/17 -p735 to 6/24 -p715, then proceeded to pick up those shares on little dips. Fun day trading the peaks and dips. Didn’t really hit anything right on, and it wasn’t much cash at stake, but interesting to see if I could time my trades better than previously. Still waiting to sell a CC on the new lot, definitely not for this week.

Edit: ok, couldn’t resist that peak over 700. Sold 6/24 -c800 @4.20

 

[UltradoomY]

Short term strangle this afternoon -
STO $650P @ $13 each
STO $705C @ $16 each
This was 5 minutes before FED announcement
Just closed the $650P at $6.50 and looking to close the Call side tomorrow or Friday for as little as possible or possibly resell the $650P's

This is not a large position just trying to get some Whiskey money for the week.

 

[TheTalkingMule]

in TSLA history, only 16 times did the sp climb more than 20% in 3 days.

scary that 2 of the 16 were on this year and just recently:

• Feb 24-28 Thu-Mon, 24.28%
• May 25-27 Wed-Fri, 21.76%

Like everyone here, I love these "maximum movement" analyses and appreciate you putting them together.

Since the Fed is today, it got me thinking.....Should we dissect these large moves a bit more? Like are these 20%+ down or up movements in SP precipitated by the same thing most of the time?

I focus on the down-side(still scarred by runaway BPS), so I'm gonna go back and pull the 2 or 3 biggest down moves from your charts and see if I can assign triggers to these moves. Things we can highlight as potential problem points or at least be mindful of.

It be nice to be able to keep a rule of +/-20% and 5 DTE for certain weeks, but be comfortable at +/-18% on most.

 

[BornToFly]

I tried to get cute with some June 2024 CC and lost some money. When the market dropped after the 75 news came out, I sold some thinking I could buy them back cheaper after we gave up the gains for the day, only to see the SP takeoff again after Powell started talking, and I decided to buy them back at a loss. Oh well. I did open new 810/910 BCS and 580/480 BPS in the last hour. Hopefully the 810s don't get threatened the next two days.

 

[M3Rider]

Closed 20 of 30 2024 CCs I sold at $760 for some $50k+ profit…actually paid off $400k of 7/2022 1000-1100 40bps losses that I rolled last year when Elon screwed those up with his share sales. 2024 CCs I started selling at 880 till now paid for bps, now I’m broke again.

Can’t sell weekly CCs cause whenever we stop going up, I will sell 2024 CCs instead.
Will use most of the money to buy out -1100 leg of my rolled 12/2022 1050-1100 bps, prob around 20 of them. I think these have a good chance of being a total loss otherwise.

Then if we go down from say 750-800 to say 550, these 20 1050s will pay for 4x-5x as many remaining bps once I close them, 100x maybe.
Then I close 2024 calls maybe at 50%.
This would let me survive this bear market if the stars align.

+2.5% to Nasdaq today feels shaky, I thought we’d go up more. The rally keeps getting screwed. First Elon, then cpi, now Powell being behind the curve.

 

[Yoona]

Can’t sell weekly CCs cause whenever we stop going up, I will sell 2024 CCs instead.

what strike?

i think tom or Fri is reversal (happy to be wrong)

 

[JustMe]

TSLA continuing steady climb after hours, currently $705 after closing at $699

Here’s hoping that $700 becomes support instead of resistance.

I bought 4x 6/17 725 calls near the close. Very rare bet for me. Just had a strong feeling this rally is not over. Likely to close these tomorrow

 

[M3Rider]

what strike?

i think tom or Fri is reversal (happy to be wrong)

I would like to get ~100/contract.
So if we can make it to around 750-760 the strike would be 1600.

Reversal would really suck. We didn’t even have a proper rally since 5/20.

 

[juanmedina]

I sold a few 780cc again for this week for $1.2...please make me roll them

 

[Yoona]

 

[vikings123]

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.

Well not looking good so far so reduced my exposure for very small loss. I still would like to see a day 2 run. Here is what happened at the last two FOMC meetings.

1. 16th March: Parabolic 300 point move over 2 weeks.
2. May 4th: 5% TSLA move(30 million volume) only to start the next leg down
3. June 15th: 6% TSLA move(40 million volume) followed by?

It looks like the Twitter Elon meeting is West coast morning hours so it will be interesting to see how much gets leaked in real time and how TSLA will react.