32% probability that it is out of the range is a little too risky for me (unless I'm not reading that correctly).
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
BrownOuttaSpec
Active Member
Great point. XOM reports in 24 days and if those number blow out the already high estimate I have a feeling that people will be calling for their heads (or windfall excise tax).
Looks like US oil is down about 10% today so hopefully gas prices will come down in the next few weeks and we can see the economy (and stock market) recover. I think you're right about the CC sellers and the steamroller (or at least I hope you are
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Well, it might be a mistake, but I sold a couple of -c705s at $10.60 when the SP hit 682. This is in the same account as the 700 straddle that I sold last week ($17.80+$42.00), so something’s got to give. Interesting how much decay (and probably IV drop) there has been on those since Friday AM (trades were very near the same SP). I’m really positioned to get steamrolled this week with my CCs, so you’re welcome in advance when it happens. Oops, looks like it’s already starting.
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Before seeing @Yoona latest range message re $730 for 7/8, took a desperation Hail Mary on a 9/16 DOTM call and sold covered calls on 40% of shares (after 3 weeks off), will roll as needed:
- stc 091622 $1100 and bto 102122 $750 (fewer contracts result in a small debit, or increased investment depending on how you look at it, extended to timing of 3Q P/L publication)
- sto 070822 $730 at $2.96
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dc_h
Active Member
Looking like Point 1 is about to be crossed. If we hit 704, I'll sell a couple more CC's at 750 or maybe 775. As bullish as I am, this is good timing to convert September leaps to shares.R1 is 693
TSLA - Tesla Stock Trader's Cheat Sheet - Barchart.com
Support Resistance, Pivot Points for Tesla Inc with Key Turning Points and Technical Indicators.www.barchart.com
View attachment 824952
One thing about buy-writes; I'm finding, so far, that a benefit (to me) is that these tend to earn their premium in a rush at the end of the expiration, with pretty large moves needed for a quick early close. This might (probably is) more of a function of being so close to the money with the positions.
For me this is a benefit as it makes it that much easier to fire and forget; open the position, keep a distant eye on the share price, and then close as we near expiration and the extrinsic value sinks towards $0 ($1 for me).
When I'm being more precise I describe these as call credit / put credit spreads (when I sell them), and call debit / put debit spreads (when I buy them).
We're almost exclusively opening put and call credit spreads around here (receive money on open, pay money to close).
Despite this I decided to carry through with my buy-writes from last week in which I only did the buy component ($700 pretty close). I just opened 700 strike calls for $13ish. Given that I close these at $1 and the purchase was really $703 then I'm looking for a $9 profit at all share prices above $700. That's an ok / on-target results for 2 weeks, and is still only using a significant minority of the larger assets I'm managing this way.
Still sitting out any higher strike cc's against those shares - its getting tough to not selling any cc's against those, even really distant cc's such as an 850 strike.
On the plus side also still in a full ownership position, with my only leverage coming from owning June '24 500 strike calls, along with using really close to the money call strikes in the buy-writes. No spreads, no margin, and I have been sleeping a lot better at night
Aand closed this for $6.9. Thats 66% in one day.Sold 07/08 -p650 for $20 when sp dipped to around 652. Just too tempting.
If this gets assigned, I really don't mind buying shares at 630
scubastevo80
Member
I got greedy on this exact trade this morning. Put my $2 limit in when we were initially down ~4% and it never hit. I should have taking the $.10 hit.
Knightshade
Well-Known Member
That's about where my -550/+450 spreads opened this morning are right now.... but I can't think of what I'd do with the $ freed up closing em same day that's better than just letting the remaining value bleed out?
yeah those are pretty far.. mine was so aggressive that I rather take an early exit than see the stock drop and risk my put going itm.
Saw this earlier on twitter - I am doing a one contract test -
STO 07/08 $725 C @ $8
BTO 07/08 $650 P @ $6.45
Just one contract each... I didn't do anything else productive today, so figured I would screw off with this.
The Put/Call mismatch could also mean we are getting to max fear. The price of oil dropping has me hopeful that we are on the cusp of a reversal. But I never thought we'd be here, so I clearly know nothing.
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