Wiki Selling TSLA Options - Be the House

[jeewee3000]

My position for earnings (due to circumstances/rolling):

-700cc

-750p/+550p bps

I'm expecting we'll be either above 750 or below 700, so one of these legs expires worthless. The other can be managed.

If we end up between 700 and 750 I guess closing out both is worthwile (both of these are already green), or I can roll one of them.

GLTA. Stay safe out there.

 

[ReddyLeaf]

Oh, but I countered that by selling 800CC as well as buying 700P, so this guarantees that we will have a surprise rally

See you and raise. Sold 7/22 -c755s and planning to hold to Friday afternoon. Also have 7/29 -c750s/-p750s, letting theta do its thing. Must raise more cash to deal with 9/16 -p1000s.


Edit: @jeewee3000 wins. -c700s are way too aggressive for me.

 

[Max Plaid]

All the stress over cc800's and 875's... going into earnings, I'm holding:

15x -c700's: 10x against shares assigned from -p700's, 5x against Jan 24 c700's: will roll if necessary, the 10x at the same strike, as they were buy/writes and I don't care about exercise on those, but will milk them while they give a return, the 5x I will look to roll up as I need an SP of $880 for the underlying LEAPS to go into profit

20x -p720's: these were originally -p700's, but I rolled them up yesterday for net +$7, with the SP looking bullish I decided the risk was low and TBH if they go ITM, my calls will do fine anyway. Will roll if necessary, but TBH I'm quite liking share assignment, it makes wiring calls so stress-free

 

[MikeC]

FWIW, TSLQ options are trading...very, very thinly. There are almost no sellers but I did just buy a couple $47 strike 8/19p.

 

[willow_hiller]

FWIW, TSLQ options are trading...very, very thinly. There are almost no sellers but I did just buy a couple $47 strike 8/19p.

Given how these single-stock short ETFs are structured, I think a single long put on TSLQ could actually be worth more than three short puts on TSLA. I wonder if there's any arbitrage opportunity there, given most investors will assume that TSLQ will always be -3 x TSLA. Evidently the fees and rebalancing math really limit upside. Here's how the European long and short TSLA funds (3LTS.L and 3STS.L respectively) have performed:

They are also much more dangerous products as well, no thanks to the unforgiving math behind daily rebalancing. For instance, the 3 times long Tesla ETP is up 75% since July 2020, much less than the 215% gain for Tesla shares themselves. Of course, the 3 times short Tesla ETP has done much worse, losing 99.99% of its value in that timespan.

From: https://www.etf.com/sections/featur...-investors-about-single-stock-etfs?nopaging=1

 

[UltradoomY]

FWIW, TSLQ options are trading...very, very thinly. There are almost no sellers but I did just buy a couple $47 strike 8/19p.

Looks like you were literally the only one buying any put options for the next 60 days...

 

[scubastevo80]

I'm effectively sitting on an IC straddling 625 - 835 (for $3,70 premium). The BPS was written Mon, and the BCS yesterday. Even if we get a 5% or more swing on earnings, I'm OK holding until Friday as I don't think we see a 10%+ breakout to the upside from here. If we head lower, I will consider rolling my BPS down closer to <=$600 if the premiums are juicy enough.

 

[Yoona]

they want near PM Low today?

 

[UltradoomY]

FWIW, TSLQ options are trading...very, very thinly. There are almost no sellers but I did just buy a couple $47 strike 8/19p.

Update - I'm in as well for a couple of these.... why not!

 

[Yoona]

 

[Discoducky]

PSA...Charts can be deceiving...pay attention to the Y-axis deltas

 

[ReddyLeaf]

According to MaxPain, ATM IV is up to 94 right before close. Next week’s is 71. So, no matter which way the SP goes, IV will drop tomorrow. Place your bets accordingly.

 

[CHGolferJim]

Agree. I don’t think my approach is all that special, assume many others here are doing something similar, many much more sophisticated and/or risky: sell 4-15 DTE covered calls only, no puts or spreads, all but 100 shares are in IRA accounts, I have a miserable history buying 6-month or less long calls:

- Core: x00 shares and x LEAPs (currently Jan ‘24); write covered calls on 40%-60% of the shares, not on LEAPs
- Trading: buy-writes at aggressive near-ATM strikes/rolling, currently 0.75x00 shares
- Taxable: low basis, so very cautious $100+ OTM

YTD ROI vs. total current value of all shares/LEAPs = 11%.

Currently have <x CC open in several non-taxable accounts, mostly 0722$750 (until 7/22) and 2 x 0729$700 (waiting for next week). Interestingly, the credits for $10/1-week rolls on both have been steady within $1 all week despite SP and IV fluctuation, leading me to wait until 7/22 to see if those might expire OTM and/or close for dimes. Not expecting Friday’s close to be higher than today’s, but prepared if it moves.

 

[OrthoSurg]

Is this real?
If yes, happy to have BTC my 800CC

 

[ReddyLeaf]

Is this real?
If yes, happy to have BTC my 800CC

Looks real, but I can’t believe that trade at 712 actually happened.

 

[BornToFly]

Back to basically flat AH despite a solid Q2 and amazing Q3/4 incoming. I never learn. Why did I go 20% OTM on my BCS?...

 

[Max Plaid]

Back to basically flat AH despite a solid Q2 and amazing Q3/4 incoming. I never learn. Why did I go 20% OTM on my BCS?...

Tesla huge Q2 beat -> Tesla sells BitCoin -> BitCoin crashes -> $TSLA drops on #BTC dumping

Seriously good results though - not so many regulatory credits in the mix either... thought my calls were toast, now I'm not 100% convinced

 

[scubastevo80]

I didn't do this with TSLA, but did it with another stock. I bought it late June when the stock opened up about 2% down (~$49), then wrote a Nov $60 call two days later when it had ran up about 5% for $5.40. Fortunately or unfortunately, the stock is sitting at $63 right now, so I'm almost at max profit.

This was a short-term housing pain/recovery super cycle type of trade, so I thought we'd see further stock depression until inflation eased. Regardless, I'll take the 32% capped return in 6 months. The theme was extra income in a market I expected to trade flat for the next few months.

Experts - need CC rolling not advice. The above stock is now at $66 so I'm at max profit ($65.40). The CC expires in Nov - would anyone roll out to a Jan $70 and pay $3.50, or would folks wait until we're closer to expiry or for a dip? From a chart perspective, this went from oversold to overbought in a month (stock now up 28% in last 30 days), so I think there's got to be a break in the run at some point soon.

 

[Discoducky]

Back to basically flat AH despite a solid Q2 and amazing Q3/4 incoming. I never learn. Why did I go 20% OTM on my BCS?...

I did as well, but boy the IV spike was sure nice. Will be interesting see how trading goes tomorrow, against how GM and F report soon and the next few weeks against the marcro.

 

[WattsHappening]

Back to basically flat AH despite a solid Q2 and amazing Q3/4 incoming. I never learn. Why did I go 20% OTM on my BCS?...

If you are like me, the answer is, because as soon as you get a bit more confident/aggressive and go 10% OTM, that's when the 3 standard deviation SP move will happen.