Wiki Selling TSLA Options - Be the House

[CHGolferJim]

Seems less likely. The US Jobs report came in at +372,000 vs the +268,000 expected. Futures reacted by dropping sharply just after this came out at 8.30am. I'm assuming this will fuel the hawkishness of the Fed as the jobs market is still healthy and not as close to recession as some thought.

When I saw that, I felt better about the prospects of 7/8 $730 CCs expiring OTM, and put in market orders at open for 7/15 $700 and $740 to try to catch approx. yesterday’s closing prices before they drop. Good luck with that!

- got $42.20 for $700, and $19.40 for $740 = 10% and 15% below yesterday’s close

 

[Ad Astra]

So, in this environment I’ve been almost exclusively writing narrow BCS no more than 2-3 DTE. My thought is if this position starts working against me, I have more options to manage (widen spread, flip roll to BPS) as my available margin increases as the stock price rises towards the short leg. I guess it works until it doesn’t and I find myself dreading a “white swan” event but, so far, any moves up have been quickly beaten back by the market.

I still have my embattled Jan BPS sitting on the sidelines with Dec expiry. Unfortunately, this position is typing up a significant amount of my available trading funds, and I’m now at a point where I really need to start trimming the contracts until I recoup all my tied up capital. It’s a tough lesson to learn but it has made me a more disciplined trader. Ideally, I’ll be able to close these once stock starts climbing back towards ATH (whenever that will be), but barring a huge run up in 2H of this year, I may just have to eat the losses and start fresh. Any non-advice regarding managing these positions is always appreciated (-1250/+1050 BPS w/DEC expiry).

 

[mrmtb]

Boring day and want something to do so I sold some 7/15 765/770 and 795/800 call spreads on the up move and some 695/700 put spreads a couple mins ago. Probably going to get out of all by the end of the day.

Still an Iron Condor when sold at different times? A lot of my positions turn into ICs but I never open both sides at the same time.

 

[Chenkers]

Boring day and want something to do so I sold some 7/15 765/770 and 795/800 call spreads on the up move and some 695/700 put spreads a couple mins ago. Probably going to get out of all by the end of the day.

Still an Iron Condor when sold at different times? A lot of my positions turn into ICs but I never open both sides at the same time.

Most brokerages will treat separate BPS and BCS effectively the same as an IC from a margin perspective. That's what matters ultimately even if they don't show up in one neat package.

Around here $5 spreads are considered bold, all or nothing positions. They either stay OTM or go well ITM, very little wriggle room to roll for credit withy a $5 spread. I tend to do $30-40 spreads but many here do $100+ spreads to make them easier to manage if the short leg goes ITM.

A lot of early strength from TSLA in early trading! If macros turn positive it could really take off and cause a lot of positions to be managed. Still the day is young and MM's will have their chance to walk it back down a bit as long as the volume drops off later.

 

[Drezil]

Some Ideas for today if people feel lucky:

Idea behind all these trades: IV-Collapse and SP basically being in the range we are now. See the Break-Evens to the right, most are roughly 720-750

All probabilities are market-implied and not my forecast of -40% IV for todays expiry ^^ .. if i switch to my forecasts all of those trades would have 100% PoP.. =D

Edit: *welp* .. the tie it took me to make screenshots and post, TSLA broke from the long ~735-level up 10$ and is now threatening 750 ... Glad i posted stuff instead of trading stuff

 

[elasalle]

tried double dipping and sold 7/15 860 Calls against same set of shares which have calls expiring todays at 770
bit too early ...

likely will need to roll todays ...

 

[BornToFly]

Resistance levels today are roughly 751, 761, 786. We have gone through the first resistance easily. We'll see if my 780/880 BCS for today will need to be managed....

 

[EVMeister]

Keeping you all accountable for your negative thoughts:

i think, that we get a red day tomorrow and land at 695

I agree.

I think we close tomorrow between $690 and $720. If I had to guess: $700.01.

 

[Drezil]

rolled the 2 -c i still had out and up for +- 0 to next week and 14 days out respectively. They now form a diagonal (7/15 -c, 7/22 +c and 7/22 -c, 9/16 +c) instead of caendar calls. Will roll them further any time the theta gets near 0 until they form a bull call spread at expiry of the +c's

 

[TheTalkingMule]

Resistance levels today are roughly 751, 761, 786. We have gone through the first resistance easily. We'll see if my 780/880 BCS for today will need to be managed....

Not a bad problem to have I guess. I'm surprised to see us blast right thru $750, though I have peaked at the max pain chart today. Maybe $800 is more of a concern.

 

[Drezil]

Keeping you all accountable for your negative thoughts:

i still hold my 3x +700p for a drop..
They are worth $24 (not $24 per contract .. $24 as a whole. $0.08 per contract ) at the moment!! I never give up hope!!

 

[phantasms]

I don't sell calls often, but when I do, all of you should close yours out.


Rolled today's 750 to 800 next week for a tiny loss.

 

[mrmtb]

Most brokerages will treat separate BPS and BCS effectively the same as an IC from a margin perspective. That's what matters ultimately even if they don't show up in one neat package.

Around here $5 spreads are considered bold, all or nothing positions. They either stay OTM or go well ITM, very little wriggle room to roll for credit withy a $5 spread. I tend to do $30-40 spreads but many here do $100+ spreads to make them easier to manage if the short leg goes ITM.

A lot of early strength from TSLA in early trading! If macros turn positive it could really take off and cause a lot of positions to be managed. Still the day is young and MM's will have their chance to walk it back down a bit as long as the volume drops off later.

I prefer to sell a lot of narrow spreads vs wide because I focus on the premium collected to dollars at risk in a max loss situation.

edit: SPY put spread for example right now:
360/370: 1.96
369/370: .32

Closed everything for a few % profit (edit: 8%) because I luckily sold more puts and don't want to watch all day haha.

 

[vikings123]

Resistance levels today are roughly 751, 761, 786. We have gone through the first resistance easily. We'll see if my 780/880 BCS for today will need to be managed....

I think that's way too many resistance levels to keep track of. What's worked best for me is tracking the 5,10, 20 and 50 day SMAs on the daily and hourly charts. For example when TSLA tested the 50 SMA(741/742) today it pulled back a bit. Once it cleared it for the second time it just took off. Your mileage may vary.

For next week, as we long as we close above 50 SMA I expect this run to continue.

 

[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

Update: I just closed the 690s for .05 I now have no open positions, except LEAPs and am holding about 50% cash.

It feels pretty good to have survived the great 2022 volatility with no options losses (so far), because at one point it was looking pretty bleak. We have all been battle tested this year and this gives me more confidence than ever that positions can be managed in most cases.

This comes at a perfect time since I am taking the family on vacation next week and won't be able to trade.

Cheers to everyone in this thread, I couldn't have done all this without the constant learning and advice shared here. I love this place!

 

[Drezil]

Update: I just closed the 690s for .05 I now have no open positions, except LEAPs and am holding about 50% cash.

It feels pretty good to have survived the great 2022 volatility with no options losses, because at one point it was looking pretty bleak. We have all been battle tested this year and this gives me more confidence than ever that positions can be managed in most cases.

This comes at a perfect time since I am taking the family on vacation next week and won't be able to trade.

Cheers to everyone in this thread, I couldn't have done all this without the constant learning and advice shared here. I love this place

Glad to hear.
I'm sadly still down ~110% this year and things have to change fast in the next months or i got REAL problems
I'm just super grateful to people believing in me recovering that they were willing to lend me money so i can continue.. still grasping every straw i can get .. so .. if anyone need a coder for anything ..

 

[intelligator]

When I saw that, I felt better about the prospects of 7/8 $730 CCs expiring OTM, and put in market orders at open for 7/15 $700 and $740 to try to catch approx. yesterday’s closing prices before they drop. Good luck with that!

- got $42.20 for $700, and $19.40 for $740 = 10% and 15% below yesterday’s close

Rolling the 730 yesterday would have been the better move. At 762, the same 740 for 7/15 is now 6.05 ... another note to add to my pad I may instead consider 7/22 760 for 11

EDIT: Also looks like price is hitting the 760 resistance, improving the credit on the 5-6 DTE, VWAP flattening as well.

 

[OrthoSurg]

I don't sell calls often, but when I do, all of you should close yours out.


Rolled today's 750 to 800 next week for a tiny loss.

I am happy I closed my 8/7 765CCs 2 days ago for 85% profit.

My 15/7 800CCs are dark red.
I will wait for next week to see what happens before rolling them

 

[adiggs]

I don't sell calls often, but when I do, all of you should close yours out.


Rolled today's 750 to 800 next week for a tiny loss.

I wonder how many of us get the reference, or remember the specific beer this was a commercial for

 

[OrthoSurg]

Glad to hear.
I'm sadly still down ~110% this year and things have to change fast in the next months or i got REAL problems
I'm just super grateful to people believing in me recovering that they were willing to lend me money so i can continue.. still grasping every straw i can get .. so .. if anyone need a coder for anything ..

If the stock headed to 420 I would be 110% down on my portfolio too.
That was my treshold to close all my brockerage accounts and store any money I make under my mattress. Or send it to Yoona.

Really happy the -50% SPY prediction of my friend following Burry tweets did not happen, yet.