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Wiki Selling TSLA Options - Be the House

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So, as expected, I had a pile (a big pile at that) of AAPL -p150's assigned this morning $145.50 net including the put premium) - obviously this was going to happen, but there's always a finite chance and hope, however small, that they don't assign, but meh, they sure did! So happy to see the +ve action, although AAPL was nowhere near as good as TSLA's day, in any case, I could sell some 7/1 -c140's for decent $ and don't care if they exercise either, would be a small net loss, but nowhere near the realised loss I would have taken had I close out the puts on Friday - in principle I can hold those AAPL shares for years, as long as I can generate some returns in the interim, but would prefer to offload them sooner rather than later and return to concentrating on TSLA

Closed the GOOGL 4x -p2120's I sold Friday, was trying to roll them up at the death to -p2200's to straddle the -c2200's that are ITM, but broker logged me out of my session, for no obvious reason, and I lost the chance - could play in my favour if we get a red start tomorrow, or the opposite...

On the subject of straddles, $TSLA seemed to get stuck on $725, so I decided to sell 2x -p725/-c725 for the very juicy $25 per contract on both sides, will be interesting to see how that plays out, seemed a reasonable risk/reward for $10k

And finally I put in what I thought was an stupidly high 20x ARKK -c42 limit at $1.2, which happened to trigger - these ARKK call sells are modest amounts, $1 - $3k per week, but given that the underlying capital is 20x Jan 24 c30's, which I bought at $18, it's 5-8% roic, which is an excellent return on a very low risk, IMO
 
Got assigned my 7/15 -880p this morning. In deciding how to manage the new shares (which started off as $230 in the hole), I decided to sell a 8/19 -700cc for $85 in premium at the open to "cover" the loss (sp was $685 at that time).

Welps, not only did I calculate the "cover" incorrectly (because it's still a $100 loss if it exercises by 8/19!), but I also missed the rest of the rise.

Stupid is as stupid does. On the plus (or minus depending on the POV) side, with macros being the way they are, I probably might have a chance to profit on this!
 
Ok, they have done it again, dropping to -10%. Why are we not predicting this every time? Why am I not waiting for this? Ok, this time I’m jumping on this. Bought one 7/08 +c800 at $6.15 and one more share at $631.50. That’s it, only enough cash in one account to buy one more share, and I’m waiting for the last $620 low. Edit: Buy Buy Buy. thanks @chiller

Anybody else hoping for this Monday?

View attachment 817380
Dreams do come true?
 
Got assigned my 7/15 -880p this morning. In deciding how to manage the new shares (which started off as $230 in the hole), I decided to sell a 8/19 -700cc for $85 in premium at the open to "cover" the loss (sp was $685 at that time).

Welps, not only did I calculate the "cover" incorrectly (because it's still a $100 loss if it exercises by 8/19!), but I also missed the rest of the rise.

Stupid is as stupid does. On the plus (or minus depending on the POV) side, with macros being the way they are, I probably might have a chance to profit on this!

Thank you for reporting this. I have several deep ITM bps at 7/15 expiration. I guess I had better deal with them soon.
 
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 :(
Our 52 week low has now moved up from 608 to 620 which aligns with our recent "double bottom". Hopefully that has a significant positive meaning 🤞

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if i understand 3x OpEx correctly, 6/17 target is ~700 and 6/24 goes to MaxPain? what sayeth thou, experts?

View attachment 812923
View attachment 812924

The Week Before: Beginner Traders Heed Warning
It should come as no surprise that things aren’t the same in the week leading up to quadruple witching. For the last 15 years, the S&P 500 has had 59 witching events. Analysis of the chart shows that the index rallies around the 6th day before to the day before the witching. However, the trading during a witching day is more aggressive, and the market isn’t necessarily kind to beginners.


What to Watch For
Because of the increased volume, the chance of some abnormal price moves—and a statistical bias which may cause some day trading strategies not to work (which work during non-triple witching weeks/days)—some day traders recommend caution, and others recommend not trading at all. How an individual day trader chooses to handle triple witching will depend on their trading style, trading strategies, and level of trading experience. New traders will want to be more cautious in the days leading up to and on Triple Witching Friday.
good morning, gents!

yesterday's Close and today's PM High (so far) are only approx $1 off today's MaxPain

perhaps i was right 2 weeks ago - "6/24 goes to MaxPain"

(edit) hmmm 710 straddle is $44 credit 2 DTE
 
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Sold some $750C's yesterday for $15 each... closed early this morning for $5.75 and just resold the same for $9.25... will see if I can close around $5 later today or just wait for tomorrow.
Not bad for some scalping - was taking into account the run up yesterday and Powell speaking this morning to add some volatility.
IV is pretty high right now, so any swing really impacts pricing. Just be patient and not greedy!
 
good morning, gents!

yesterday's Close and today's PM High (so far) are only approx $1 off today's MaxPain

perhaps i was right 2 weeks ago - "6/24 goes to MaxPain"

(edit) hmmm 710 straddle is $44 credit 2 DTE
I don't know. It sure looks like it wants to end the week a lot higher....
 
Sold some $750C's yesterday for $15 each... closed early this morning for $5.75 and just resold the same for $9.25... will see if I can close around $5 later today or just wait for tomorrow.
Not bad for some scalping - was taking into account the run up yesterday and Powell speaking this morning to add some volatility.
IV is pretty high right now, so any swing really impacts pricing. Just be patient and not greedy!
I didn't wake up early enough but the 750c would have been a good day trade, low is $4.9, high $15.10.

I sold another 750c just now at $9.10 when the stock is around $726. I'm willing to let some shares go at $750 to derisk before Q2. Or they can all expire worthless :cool:
 
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Musing on @adiggs's buy-write posts and @Yoona's straddle post - also one of my favourite patterns - I put this to you all...

Imagine you have $700k cash and are wanting to trade it against $TSLA right now:
Step 1: write 2x -pATM, rinse/repeat weekly until exercised and you get 200 shares
Step 2: write 2x -pATM/-cATM, you still have enough cash to write 8 puts, but limit it to 2x as you'll be receiving 2x the premium
Step 3: allow both to expire, one side will exercise
ITM calls: your shares get sold
ITM puts: you buy another 200 shares

In either case, you've pocketed 2x the premium compared to selling either calls or puts

It's like "The Wheel" on steroids!
 
Musing on @adiggs's buy-write posts and @Yoona's straddle post - also one of my favourite patterns - I put this to you all...

Imagine you have $700k cash and are wanting to trade it against $TSLA right now:
Step 1: write 2x -pATM, rinse/repeat weekly until exercised and you get 200 shares
Step 2: write 2x -pATM/-cATM, you still have enough cash to write 8 puts, but limit it to 2x as you'll be receiving 2x the premium
Step 3: allow both to expire, one side will exercise
ITM calls: your shares get sold
ITM puts: you buy another 200 shares

In either case, you've pocketed 2x the premium compared to selling either calls or puts

It's like "The Wheel" on steroids!

Just curious, with $700k cash, you have enough to cover ~9x -pATM. Why are you limited to only 2x -pATM?