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Wiki Selling TSLA Options - Be the House

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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?... 🙄
Need to channel my inner Yoona: Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital. Do not be greedy. Be patient. Preserve capital.....
 
I am going to stick for selling CCs at least 20% out of the money with no more than 5 DTE. Will try to time on upswings, but will lean heavily on that 20% minimum and 5 DTE. This is what I have learned the past couple of months from this board.

I want as close to free money as possible with the least stress. Whatever I make, I make. Percentage wise it sucks, but it is better than any other stock out there with options that far out of the money. The actual dollar figure is what most people would call wishful thinking.

And I think my sold puts will be doing great by EOY. Even though I got hammered with them and had to liquidate a bit because I overreached on margin, the ones I hung on to have been steadily making small amounts with the rolls. I have also improved the strike prices. At some point they will perish. If you have enough capital, selling options can make you look smart. Never have to take a loss unless you get greedy. As far as your percentage returns, ahh what is this a competition?

These are great times. Tesla is doing fantastic. Renewables are taking over. Maybe we all have a shot to see the transition in our lifetime.

All the best to everyone.
 
I am going to stick for selling CCs at least 20% out of the money with no more than 5 DTE. Will try to time on upswings, but will lean heavily on that 20% minimum and 5 DTE. This is what I have learned the past couple of months from this board.
I've been doing this for a longer while now (18+ months, [3...5]% daily CAGR --> 5DTE ~ [1.03...1.05]^5 ~ 16%...28%) and it really works well for me (anecdata / gut feeling!). I'm sometimes shivering when I read people here going only 5-8% OTM on 5DTE. I just don't want to miss the rocketship up when it finally takes off. Been there done that, super frustrating
 
There has been about a 4 to 5K increase in Call open interest at the $800, $850 and $900 strikes since yesterday (plus $5k increase to the $700 Put OI). That will likely result in some overall buying by MM's to deltas hedge, adding to the upward momentum.

1658404679992.png


The way the market makers have held sway lately, I can't see them giving up on these call walls easily. $780 or $800 may become the new defensive line. So far for the week QQQ is up a bit under 3%, which would put us at $780 to just be on par with our beta. So with a strong earnings we should be able to get higher than that, but I still wouldn't be surprised if they tried to walk it back down closer to $750 by Fridays close. I've yet to open any BCS or CC positions for this week but if I do I'll still think I'll play it safe around $850.
 
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I've got some -600/+500 put spreads and some -865 CCs, both opened Monday though at different times (got the CCs sold near the top, the puts a little earlier than optimal)

The best the calls got to any point today was about 60% profit, and the puts were odder, the short leg was about even despite SP being $20 higher and 2 days of time decay since sold so spiking IV I guess....and the long leg was up like 50% again despite the 2 days of decay and higher SP.


I might consider closing the calls before ER if they get more in the 70-80% profit range maybe...but I'd be 100% comfy leaving them open and if we magically spike up $120+ Thurs/Friday I'm fine rolling em.

Will probably leave the put spreads open unless they move a lot more into green overall tomorrow, again not really concerned about the chances of these getting into trouble.


FWIW left it all open through earnings-- then closed on IV crash this morning everything both puts and calls north of 90% profit (varying how much more than 90 by exact position and timing)
 
Thinking about selling an 850 for next week if we approach 800 today with the expectation the price will get pushed down later in the day and I can close. Worst case scenario is these are "wheel" shares which I got from a 900 put execution. If it goes bad I can roll and easily get back to 900.

edit: sold @ $6.85. game on.
 
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TSLA Safe OTM% (Fri Close vs Mon Low/High) - Last 2 Years

Safe Fri OTM% if one misses timing the Mon dips/peaks
  • BPS OTM% - Fri Close vs. Mon High (ie, if i missed the Mon Low to sell BPS and instead sold at Mon High)
  • CC/BCS OTM% - Fri Close vs. Mon Low (ie, if i missed the Mon High to sell CC/BCS and instead sold at Mon Low)
edit: if one is lazy to wait for dips/peaks, 17% appears to be safe in 2022, 5 DTE

1658410895953.png
 
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It is earnings week so risk is higher. GREAT decision and no regrets, because it takes only one mistake to undo many months of work.
Yes, I did not roll or close all my 810 CC's, small enough to not damage months of gains, but not optimal. I may still roll, but was expecting resistance at 775 and the call wall at 800 will protect them. We're past 775 resistance already, but will MMD kick in and bring us back inside, or is 775 now support? Max pain shows a big call wall at 800, but there is not of resistance after that until 850.
Looks like macro may be at our back also, with leading indicators down and unemployment up, taking pressure off of interest rates.
 
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Anyone have any plays around the earning report?

I still have open 7/22 805 CC (opened 7/14). I was hoping to close before the earnings report, but am fine with rolling these if the SP breaches 800.
I closed out 7/22 450/600 BPS for ~70% gain yesterday (opened 7/14).

Still holding on to my underwater 7/22 805 CC, but will roll if we breach 800. Opened 7/29 850 CC.
 
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Thinking about selling an 850 for next week if we approach 800 today with the expectation the price will get pushed down later in the day and I can close. Worst case scenario is these are "wheel" shares which I got from a 900 put execution. If it goes bad I can roll and easily get back to 900.

edit: sold @ $6.85. game on.
That's the one I'm thinking of...but I'm waiting for 800. Maybe it happens, maybe it doesn't, but I'm on the wheel as well so it's all good.
 
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