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Wiki Selling TSLA Options - Be the House

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Not advice requested. I'm holding August 2022 bps: -1100/+900. Extrinsic value around $2.

Should I manage these now of give it a couple more weeks? If q2 numbers surprise to the upside I think 800 is easily reachable. Maybe 900. But dunno how much more steam we could gain in a mere two months.

I have never managed anything so deep ITM so take it FWIW. Even if Q2 deliveries surprise to the upside we are at the mercy of macros. I have heard people saying we could have another 20-30% to go on the S&P. While it seems like Tesla is diverging ever so slightly from the indices I just don't see us getting to 900 by August 2022. I also think there is so much variability in terms of Q2 earnings that it will be difficult to gauge if Tesla will beat expectations; China shutdown, Berlin/Texas ramp ups, layoffs. higher shipping costs, BTC impairment etc etc


Only you can decide based on available cash/margin/number of spreads what is the best move here. Obviously an early assignment scenario needs to be considered.
 
Not advice requested. I'm holding August 2022 bps: -1100/+900. Extrinsic value around $2.

Should I manage these now of give it a couple more weeks? If q2 numbers surprise to the upside I think 800 is easily reachable. Maybe 900. But dunno how much more steam we could gain in a mere two months.
You could switch it to a calendar spread - keep the +$900's and just roll the -$1100's out and get a small credit, then when we dump some more - sell the +$900's and wait a couple of days for a pop and rebuy the matching expiration for the rolled -$1100's maybe even widening the spread for easier options later.
 
You could switch it to a calendar spread - keep the +$900's and just roll the -$1100's out and get a small credit, then when we dump some more - sell the +$900's and wait a couple of days for a pop and rebuy the matching expiration for the rolled -$1100's maybe even widening the spread for easier options later.

This is a really interesting idea. The only problem I see is selling the long put and waiting to rebuy the matching put would demand a lot of margin backing- in the short term at least.
 
This is a really interesting idea. The only problem I see is selling the long put and waiting to rebuy the matching put would demand a lot of margin backing- in the short term at least.
Yes but should be somewhat offset by the selling of the more valuable bought side Puts.
Probably not a solution for everyone's account but definitely can be employed if you have the room.

For example if I have a short put with Schwab it reserves $20k margin - however if it is part of a spread - it uses the spread width as the margin requirement.
So if I had a 100 wide spread it reserves $10k but $20k for the straight put.

as always.... Not advice but I have done this when we were dumping over the past couple of months and it has worked well.
 
Not advice requested. I'm holding August 2022 bps: -1100/+900. Extrinsic value around $2.

Should I manage these now of give it a couple more weeks? If q2 numbers surprise to the upside I think 800 is easily reachable. Maybe 900. But dunno how much more steam we could gain in a mere two months.
We've been in a similar boat for a while and I'm gonna assume you have margin constraints that won't let you convert to a calendar spread and manage from there. Or you're in an IRA like me.

So your options really are to take the pure risk of holding out for 1000 to roll for credit(or God willing expire these things at 1100), or to roll soon while taking some kind of hit. Taking any huge obvious risk of early assignment when we're so close to popping is a bad move IMO.

Personally I'm waiting a couple weeks to see how TSLA reacts to this Fed hike, then I'll likely widen my various Aug spreads by $30 or so and roll to Nov/Dec. The mockups I've done usually credit back about half the additional margin(~$13), so it's not a terrible deal. And I try to widen on the downside obviously.

So long as you have conviction you can eventually expire the contracts, this ain't so bad. The only big thing I've noticed is that I only get credit for this widen/roll move when I'm still a good ways out from expiration and the strikes are still way ITM. Closer in time or closer in strike and the credit disappears.

Perfectly logical since the only way the house wants you rolling and widening is if you're throwing good money after bad. Which is what they will assume I'm doing by adding width(margin).

If you have the bit of cash to add margin and can handle having all that cash on the sidelines for longer, that's my not advice. Push it out and take the stress off yourself. Our PE has compressed like crazy and 2Q/3Q earnings will compress it even more dramatically. That cycle will ease soon enough.

Not advice!
 
You were right
if in doubt, read and memorize the advice from my kitchen magnet
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today's plan is STO -p590 again, 31% in 3 minutes and closing it soon...

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You could switch it to a calendar spread - keep the +$900's and just roll the -$1100's out and get a small credit, then when we dump some more - sell the +$900's and wait a couple of days for a pop and rebuy the matching expiration for the rolled -$1100's maybe even widening the spread for easier options later.
This is similar to what I have been doing. I have really changed my thinking on the value of long puts in a BPS. These aren't just "insurance puts" to expire worthless, but can really be used as an advantage with these big drops we are having.

I am swinging back to the mindset of wanting to open BPS instead of CSPs, just so if the SP drops I can make $ selling the long puts and keep the short. But the key is only opening the amount of BPS that you are able to cash/margin cover the short legs alone. This also prevents over leverage with BPS, which got some of us in trouble in the past.
 
Drat. Closed my 725 calls at the open for a big loss. In $9.50, out $1.69

Yay. More than made up for it this morning. I put on my big boy pants and did the following trades.

2x 690/750 $8.90 -> $6.00
2x “ $8.48 -> $6.00
2x “ $9.18 -> $6.00

4x 650p $10.75 -> $11.80

2x 690/750 $8.40 -> $7.00
2x “ $8.98 -> $4.34
2x “ $8.25 -> $3.43
4x 685/750 $6.07 -> $4.64
4x “ $5.83 -> $4.79

Rolled one 7/15 1050/800 -> 11/18 1040/720 for $9.50 credit

Lesson: I’ll stick to day trading 🫤
 
This thread looks like technical more than the other thread so I wanted to post this here but probably doesn't matter too much. Our 52 week low is going to be creeping up the next couple of days from 608 to 620ish.

I'm still sitting on the sidelines while waiting for a recovery :(

Thanks for the info. This is a good thing 👍

I see this thread as more focused on analyzing and trying to profit off of TSLA price movements and technical indicators.

The other thread seems more like a spectator sport about TSLA price action. Cheering, booing, and yelling at the refs.

Not judging, I do that too. It’s just not terribly productive.
 
Damn, when will this craziness stop? I really expected use to hold above 650 and near 655 Friday close. I closed all my CCs for 50-75% profit this AM, hoping for a relief rally. Alas too early. Anyway bought another handful of shares at 652.xx
I'm with you. I have 620 Puts for Friday I almost want to see exercised.... With the premium, I'm getting shares for around 610. Seems like a bargain.
 
Just got word that our Due Diligence period has passed and moving forward with selling one of our businesses... Yay.
That means in the next 30 days I will have a bunch of extra capital (for me / probably relative to others :p) and I want to pick up shares before the split.
So...
STO July 15th $575P's @ $33 each - if they hit then I am in for $541 each Yay!
If not, I will be selling very aggressive ATM puts until they hit and collecting premium until they convert to shares.