Wiki Selling TSLA Options - Be the House

[JustMe]

Still wondering why GOOGL hasn't rallied at all into the 20:1 split, which is two weeks tomorrow - I can't recall a major tech stock not rising into a split = weird!

I guess it could be related to bear market sentiment..

 

[Max Plaid]

I guess it could be related to bear market sentiment..

Markets were going down the shitter when $AMZN spit, but it still went up ~20% pre-split -> and GOOGL is a far superior investment than AMZN IMO

 

[OrthoSurg]

Why can't you just sell the assigned shares and then sell 2 more p1200 and be back in the same position and keep rolling as you were before without paying the margin interest? I did that when I was assigned at 900 and it was pretty much break even.

I did just that today at the end of my 90km bike ride. Thanks for the idea!

 

[Yoona]

my plan is to close everything tomorrow and remain in cash this weekend

• i don't have to be in the court playing 48 minutes all the time, it is ok to rest 5 minutes on the bench
• next week is 50-50: this is gambler percentage, not house 99%
• if P&D is a fail, risk to capital is 0 and i don't have to non-stop fix any new unnecessary losses
• if P&D is a win, no regrets and congrats to winners, it is ok to miss out on gains
• even if i missed out, open new trade on Monday (as usual) based on the macros at that time; treat it like a regular week
• daily "small and steady" is better than once-in-a-quarter bet

 

[JustMe]

Tips for day trading in this bear market

 

[ice]

I have been trading blind without the Greeks for years. My broker finally upgraded to a new UI and now I can see

7/1 750C has delta of 0.01, 7/1 770c has delta of 0, so i think that implied 1% or less they will get ITM tomorrow

Decided to hold my 7/1 750c and 7/1 770c to expiry, the old me that can't see the Delta, might have closed them instead (like last week). In the unlikely event that the shares pop 10+% tomorrow If they get assigned, great, that's a SP gain of $77 and $97 in a day, would be happy to get some cash back, then wait for a dip to buy back. Either way it's been a good week for CC selling.

7/1 750C $20.30 (SP around $741) > current $0.15 (SP price $673.42)
7/1 770C $10.30 (SP around $727) > current $0.07 (SP price $673.42)

The 9/16 700c's that I rolled from 5/27 $600c also went down nicely

On 6/24 9/16 700C $116.35 (Stock price $737.12) > on 6/30 $79 (Stock price $673.42)

Overall I'm less stressed than back in May in the same SP $600 range, I'm more prepared for a Q2 P&D drop than I would be last month.

I probably will not open new ones until next Tuesday, will sell more CC if SP pops above $700 , but if it doesn't, I'm ok just sitting out as well. I've made more premium in these past 2 weeks than the past few months.

GLTA

 

[Oil4AsphaultOnly]

Just an opinion, but I think tomorrow will be an up day. Here's the reasons:
- max pain is $700
- 7/1 is the start of a new month and quarter, so macros might be an up day as the hedge fund window dressings should be done now.
- lower expected Q2 deliveries were in main-stream media today, so it should be priced in already.
- personal-consumption price index was announced to be lower than expected today (intepreted as inflation rate is no longer accelerating).

 

[intelligator]

Hey all, below are the open interest gamma charts for this week. Monday was an up day without an evident pattern outside of the interest at 800c. Tuesday that same interest shifter from 800c to 700p. Wednesday almost all of the 800c interest gone, some developed at 700c, 680p and 650p. The pattern today is most interesting (symmetry with respect to origin) I believe is the curve that best fits, 680 being the dividing line.

I wasn't available Monday to sell cc but did manage to sell 7/1 660 CSP Tuesday. Given today's pattern and price movement, I'm not feeling much for Friday, I'm expecting the csp to expire worthless. Maybe it's good thing to leave the cash on the sideline while P&D and the macro love settle the score next week.

.

 

[Drezil]

Oh crud, I hadn’t looked at Bitcoin this week so glad I didn’t get into cryptocurrencies

Crypto is exploding left and right. Billions of ponzi schemes collapsing, "fully backed" stablecoins just being backed by other coins that implode..
the LUNA/TERRA thing will repeat with USDD. Why? They promise 35% "risk free" interest, if you just stake your money there..

TA says that Bitcoin should go to 12000 before reversing..
Otoh I already thought about shorting BTC via GBTC (NASDAQ pink sheet) - usually this is an indicator that a local bottom is near

I just hope that the consequences for TSLA are limited.. as BTC had some influence on TSLA in the past

 

[Max Plaid]

my plan is to close everything tomorrow and remain in cash this weekend

• i don't have to be in the court playing 48 minutes all the time, it is ok to rest 5 minutes on the bench
• next week is 50-50: this is gambler percentage, not house 99%
• if P&D is a fail, risk to capital is 0 and i don't have to non-stop fix any new unnecessary losses
• if P&D is a win, no regrets and congrats to winners, it is ok to miss out on gains
• even if i missed out, open new trade on Monday (as usual) based on the macros at that time; treat it like a regular week
• daily "small and steady" is better than once-in-a-quarter bet

Looking very much like I will be assigned 10x -p700, so I'll be looking to sell calls against those next week

In the meantime, I have no shares to sell against, but 5x Jan 24 c700's, so if it looks indeed like we'll close below $700 I will I hedge a bit and sell 5x -c700 for next week in case we dump on Monday. If it pops, fine, I get my capital back, plus the premium

 

[OrthoSurg]

FYI, yesterday after trading hours just got assigned 2 of the 5 -p1250 19/8 contracts I have been rolling for 6 months now that I sold when the SP was 950 and we were in an uptrend. Should have closed them when SP reached 1150 however theta value was still high and they were +25%.
I was planning to address those and roll them out today because I was working like crazy the last days and got my first day off today. I guess I will be working more to pay the interest on that $240,000 on my margin at 4.25% until the SP reaches new highs and be able to trim a little bit of the position. Will roll the rest to December.

My first assignment. 42 DTE

Just opened my brokerage account and I have been assigned overnight the remainder of the 3 -p1250 19/8 contracts when I bought them back at the end of the trading day around 3:45PM Bought back the 3x -p1250 and sold 5x -p1250 16/12. Sold 200 shares from the 2 contracts assigned. Now on the settlement balance it still shows 500 shares bought at 1250.

This morning I opened up my brokerage account and see 300 more shares bought at 1250, contract assigned yesterday after hours after I bought back the contract. I went from a cost basis of 400 in the beginning of the week to now over 580.

Broker is closed today because of Canada day so I can’t call them before Monday to see if that’s normal. Buy back a contract and get assigned after… On a contract I dont hold anymore.

And it shows on my brokerage platform that I now hold 3x +p1250 18/9.

Would you guys close the long put today and sell the 300 assigned shares or wait to speak to someone on Monday and see if they can reverse an saignement on a contract I had bought back?

 

[Chenkers]

Would you guys close the long put today and sell the 300 assigned shares or wait to speak to someone on Monday and see if they can reverse an saignement on a contract I had bought back?

If you have cash and can manage the P+ in your account then you have some time. If you think there's a chance of a dip next week then the P+ will increase in value. Note that the NASDAQ is closed Monday so you would have time to sort it out with your broker and maybe have the assignment reversed.

I've had 3 x 1000P- for 15July exercised over the last 2 days. They were part of a 910/1000 BPS that I'd been rolling along for a while but was trying for a cheaper roll to move them to Sept or Oct. I still have 2 left and will roll those. The first 2 that were exercised, I just exercised the 910P+ pre-market as it's a cash only account and I didn't have time to deal with it at market open to avoid liquidation. The one that was exercised today, I've sold enough shares pre-market to give a + cash balance and will sell the remaining exercised shares today (expected close around $680 but should get higher). The 910P+ I will hold on till an expected dip next week after P&D and sell once it's gained some decent value. Hopefully making up for some of the $9k loss compered to exercising both.

 

[OrthoSurg]

If you have cash and can manage the P+ in your account then you have some time. If you think there's a chance of a dip next week then the P+ will increase in value. Note that the NASDAQ is closed Monday so you would have time to sort it out with your broker and maybe have the assignment reversed.

I've had 3 x 1000P- for 15July exercised over the last 2 days. They were part of a 910/1000 BPS that I'd been rolling along for a while but was trying for a cheaper roll to move them to Sept or Oct. I still have 2 left and will roll those. The first 2 that were exercised, I just exercised the 910P+ pre-market as it's a cash only account and I didn't have time to deal with it at market open to avoid liquidation. The one that was exercised today, I've sold enough shares pre-market to give a + cash balance and will sell the remaining exercised shares today (expected close around $680 but should get higher). The 910P+ I will hold on till an expected dip next week after P&D and sell once it's gained some decent value. Hopefully making up for some of the $9k loss compered to exercising both.

I added some cash last week around 150k but now enough to buy 300 shares of TSLA at 1250 and buy 3 long puts. However the fact that I sold 5 short puts for December in intent to roll the 3 short puts that got exerciced if giving me liquidity. However, the margin calculator did not update that new contract and might end up in margin call territory when they update it. I am hesitant to close everything this morning at market order or wait and see. I already sent an email to my private account director to see how to sort it out the problem is that I am going for a 120 miles bike ride in Vermont today and it’s Holliday so it’s impossible for me to sort it out today during officer hours.

Assignment at the worse time ever

 

[MikeC]

Just opened my brokerage account and I have been assigned overnight the remainder of the 3 -p1250 19/8 contracts when I bought them back at the end of the trading day around 3:45PM Bought back the 3x -p1250 and sold 5x -p1250 16/12. Sold 200 shares from the 2 contracts assigned. Now on the settlement balance it still shows 500 shares bought at 1250.

This morning I opened up my brokerage account and see 300 more shares bought at 1250, contract assigned yesterday after hours after I bought back the contract. I went from a cost basis of 400 in the beginning of the week to now over 580.

Broker is closed today because of Canada day so I can’t call them before Monday to see if that’s normal. Buy back a contract and get assigned after… On a contract I dont hold anymore.

And it shows on my brokerage platform that I now hold 3x +p1250 18/9.

Would you guys close the long put today and sell the 300 assigned shares or wait to speak to someone on Monday and see if they can reverse an saignement on a contract I had bought back?

How annoying. I see your option trade is just “Buy” whereas all the brokers I’ve ever used had “Buy to open” and “Buy to close”.
Is it possible you were already assigned without knowing it shortly before you bought the puts back?

 

[OrthoSurg]

How annoying. I see your option trade is just “Buy” whereas all the brokers I’ve ever used had “Buy to open” and “Buy to close”.
Is it possible you were already assigned without knowing it shortly before you bought the puts back?

On the line with then right now

Seems they were assigned on the 29th

But didn’t show up until today

 

[jeewee3000]

my plan is to close everything tomorrow and remain in cash this weekend

• i don't have to be in the court playing 48 minutes all the time, it is ok to rest 5 minutes on the bench
• next week is 50-50: this is gambler percentage, not house 99%
• if P&D is a fail, risk to capital is 0 and i don't have to non-stop fix any new unnecessary losses
• if P&D is a win, no regrets and congrats to winners, it is ok to miss out on gains
• even if i missed out, open new trade on Monday (as usual) based on the macros at that time; treat it like a regular week
• daily "small and steady" is better than once-in-a-quarter bet

I applaud this mentality.

That said, I am bullishly positioned since I really think the $620 low will not be breached. Positive P&D report will cause a rally, negative P&D report won't take 10% off the stock IMO. A lot of downside is already priced in if you ask me.

My earliest expirations are 7/22 though, so even flat SP is good since the P&D might cause some IV crush. Like you I don't want positions open with 7/8 expiration.

 

[MP3Mike]

Just opened my brokerage account and I have been assigned overnight the remainder of the 3 -p1250 19/8 contracts when I bought them back at the end of the trading day around 3:45PM

This morning I opened up my brokerage account and see 300 more shares bought at 1250, contract assigned yesterday after hours after I bought back the contract. I went from a cost basis of 400 in the beginning of the week to now over 580.

My first thought was that you bought, to open, 3x +P1250s instead of buying, to close, the 3x -P1250s you had. Which is supported by this:

And it shows on my brokerage platform that I now hold 3x +p1250 18/9.

(Most brokers won't let you hold + and - of the same strike/expiration...)

But then you said this:

Seems they were assigned on the 29th

Which doesn't make sense. So I'm still going with that you didn't buy to close.

 

[corduroy]

I took the opportunity when we popped to $690 to roll my last remaining problematic -710p to next week -690 for $6. I don't think we close above $700.

I've been managing this for 10 weeks now, still making credits most weeks while rolling down, barely staying ahead of this seemingly perma-dropping market. Eventually, we have to find a bottom and I will close this out, but not this week.

This started as a 4 DTE -870/770 BPS with the SP at $960. Here are the rolls and credits.

-870/770 $2.50
-830/730 $2.10
-790/690 $6.00
-760/600 $0.00
-740/640 $0.00
-740/620 $1.70
+620 (sold) $20.00
-735 $4.20
-710 $6.00
-690 $6.00

 

[BornToFly]

I should have closed my -680P for a small profit on the opening pop. I was so convinced we close about 680 today that I held. Hopefully we recover by the end of the day. Otherwise I might take the shares and sell CC for next week.

 

[BornToFly]

I should have closed my -680P for a small profit on the opening pop. I was so convinced we close about 680 today that I held. Hopefully we recover by the end of the day. Otherwise I might take the shares and sell CC for next week.

LET'S GO....