Wiki Selling TSLA Options - Be the House

[Drezil]

sold 2x 800CC for friday @10.00

But then turned around & expended the 2k i got as premium to buy 5x 830c for friday to turn all 5 800CC i got into 5x 800/830 BCS to prevent losses on a massive spike where rolling up/out would hinder the profits on the underlying Aug 26th 800c "leaps". Now i just let things ride & hope that we end <800 on friday so the BCS expire worthless basically leaving me with full gain on the original 3x 800CC i sold.

I also have a friday/aug 19th 750 calendar call. If we crash i make big gains on the -750c. If we stay at 800 then the -750c will be pushed out/up 1 week. This will go on every week as soon as theta is <0.1. And then i see where i end up on Aug 19th when it finally forms a bull call spread (but with positive theta-farming the whole time).

 

[adiggs]

With shares up so much I find that my shares and leaps are in range for some regular cc sales. I've got orders in to sell next week 900s at 2.20ish (filled). It's not a lot, but its more than they've been earning, and rolling those up and away if needed won't be difficult.

For my buy-writes the time value is down under $1 but I can wait for tomorrow to resolve them. If we do reverse tomorrow then I'll have a good roll for credit. If we don't then I'll realize about $17 on the open positions. A roll today, which I also considered, would generate about $3 in time value for next week. That's low enough that I'm more likely to close and await a new opening position.


not-advice
I like the earnings report but I expect today's euphoria to not last very long. My guess of the moment is we'll reverse tomorrow, but either way I expect it'll happen by end of the month. Now that the earnings is out we've got 2 months without Tesla news to keep people excited. That'll provide opportunity for bad macro to take back over and hurt growth stock. At the least that'll keep things flattish. The big exception I see is the stock split (I don't expect the shareholders meeting to move the needle) - that could have a noticeable and useful impact when naked shorts need to cover.

I also tend to be late on macro effects; a good reason to ignore or expect the opposite of how I see things. Maybe this time a .75 or 1.00 rate increase will be viewed as the basis for a relief rally. Something I continue to remind myself - the current rate (1.50) is -STILL- stimulative to the economy. Its just not nearly as stimulative as we have been. A 1.00 rate increase would get the interest rate up to the level the Fed has indicated is neutral to the economy - neither stimulative or the opposite. I expect the rate to continue upwards after this next rate hike - another reason for macro to take back over during the summer.

Lastly - I continue to be primarily concerned with the risk to the upside. Yes the shares can go down but we're at such a low share price that I don't see a lot of room to go further down. With the ATH over 1200 I see a lot of room to the upside - room for the share price to move up and fast, and thereby overrun any short calls (call spreads). As a result I'm not selling any CC that won't result in an overall profit if they get overrun (close the short and long calls). I'd miss out on a lot of upside if they were overrun, but at least I wouldn't be taking realized losses. That's probably the 900 strike on the low end that I've opened for next week.

 

[OrthoSurg]

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?...

In retrospect, genius move

 

[Nocturnal]

I'm much more conservative with my options selling than most of you here, but I'm looking at 9/16 or so $1ks. Hard to imagine we get another 20% between now and next Q with the macro still being wonky. IV is still a little low.

Or maybe 8/12 $900s for a similar premium.

 

[samppa]

Rolled cc:s (-750, -780 strikes) out and up to next week, closed -750p legs at >90% profit.. such a good problem to have these itm calls.
I've been in this sort of really aggressive straddle/strangle last few weeks, rolling the itm side. It's been working out great so far.
Now I'll wait for a red day to open the put side leg again.

 

[juanmedina]

I closed my 810cc's early today for about 50-60% profit and still have the 850-840's. I am thinking about opening 900's for next week.

Closed a few more around $0.30 but the rest are now red . I sold a few more 900's for next week from $2.2-3.45. I think I am done for the day.

 

[juanmedina]

Closed a few more around $0.30 but the rest are now red . I sold a few more 900's for next week from $2.2-3.45. I think I am done for the day.

wow what just happened the 900's when from $3.45 to $4.40 in a sec?

 

[Yoona]

as of 1230pm

 

[mongo]

wow what just happened the 900's when from $3.45 to $4.40 in a sec?

Long time period between executed trades?

 

[phantasms]

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.

I hope you didn't follow me! lol

We'll see what happens tomorrow but win win either way. My account has essentially zero cash. I wouldn't mind getting called so I can start selling puts again when/if we come back down.

 

[juanmedina]

Long time period between executed trades?

The trade was executed at 12:24:12 It seems that Tesla was around $808. It seems like a big jump to me from $3.45. At $810 they were like $4.1.

 

[Drezil]

sold 2x 800CC for friday @10.00

But then turned around & expended the 2k i got as premium to buy 5x 830c for friday to turn all 5 800CC i got into 5x 800/830 BCS to prevent losses on a massive spike where rolling up/out would hinder the profits on the underlying Aug 26th 800c "leaps". Now i just let things ride & hope that we end <800 on friday so the BCS expire worthless basically leaving me with full gain on the original 3x 800CC i sold.

I also have a friday/aug 19th 750 calendar call. If we crash i make big gains on the -750c. If we stay at 800 then the -750c will be pushed out/up 1 week. This will go on every week as soon as theta is <0.1. And then i see where i end up on Aug 19th when it finally forms a bull call spread (but with positive theta-farming the whole time).

I see my sacrifice on opening more CC was welcome.

If you want to send thanks towards me, i have a PayPal ..

 

[UltradoomY]

With shares up so much I find that my shares and leaps are in range for some regular cc sales. I've got orders in to sell next week 900s at 2.20ish (filled). It's not a lot, but its more than they've been earning, and rolling those up and away if needed won't be difficult.

For my buy-writes the time value is down under $1 but I can wait for tomorrow to resolve them. If we do reverse tomorrow then I'll have a good roll for credit. If we don't then I'll realize about $17 on the open positions. A roll today, which I also considered, would generate about $3 in time value for next week. That's low enough that I'm more likely to close and await a new opening position.


not-advice
I like the earnings report but I expect today's euphoria to not last very long. My guess of the moment is we'll reverse tomorrow, but either way I expect it'll happen by end of the month. Now that the earnings is out we've got 2 months without Tesla news to keep people excited. That'll provide opportunity for bad macro to take back over and hurt growth stock. At the least that'll keep things flattish. The big exception I see is the stock split (I don't expect the shareholders meeting to move the needle) - that could have a noticeable and useful impact when naked shorts need to cover.

I also tend to be late on macro effects; a good reason to ignore or expect the opposite of how I see things. Maybe this time a .75 or 1.00 rate increase will be viewed as the basis for a relief rally. Something I continue to remind myself - the current rate (1.50) is -STILL- stimulative to the economy. Its just not nearly as stimulative as we have been. A 1.00 rate increase would get the interest rate up to the level the Fed has indicated is neutral to the economy - neither stimulative or the opposite. I expect the rate to continue upwards after this next rate hike - another reason for macro to take back over during the summer.

Lastly - I continue to be primarily concerned with the risk to the upside. Yes the shares can go down but we're at such a low share price that I don't see a lot of room to go further down. With the ATH over 1200 I see a lot of room to the upside - room for the share price to move up and fast, and thereby overrun any short calls (call spreads). As a result I'm not selling any CC that won't result in an overall profit if they get overrun (close the short and long calls). I'd miss out on a lot of upside if they were overrun, but at least I wouldn't be taking realized losses. That's probably the 900 strike on the low end that I've opened for next week.

AGM is in 2 weeks - vote for share increase and split announcement date could add fuel to the fire - A.I. day 2 in September also is a possible catalyst before Q3 P&D report first week of October.
So not the normal 2 months of no news and "only Macro" steering the ship IMO.

 

[juanmedina]

AGM is in 2 weeks - vote for share increase and split announcement date could add fuel to the fire - A.I. day 2 in September also is a possible catalyst before Q3 P&D report first week of October.
So not the normal 2 months of no news and "only Macro" steering the ship IMO.

And a possible credit rating upgrade.

 

[Yoona]

methinks there is reverse tomorrow...

i am curious if anyone is thinking of 7/22 buy-write 810 with 800cc 18 credit, 1 DTE

or is that a good/bad idea

 

[TheTalkingMule]

It's nice to see more than $3-4 worth of value left on some of my lingering BPS short legs!

Good luck to all here over the next few weeks. The steamroller is heating up and for once I'm overjoyed to have no dry powder or cash margin to deploy.

 

[Knightshade]

methinks there is reverse tomorrow...

i am curious if anyone is thinking of 7/22 buy-write 810 with 800cc 18 credit, 1 DTE

or is that a good/bad idea

Not doing that, but I did sell a buncha $900 CCs for 7/29 just over $4 a share with the idea the reversal theory might let me grab a cheap profit late tomorrow and then re-open something else Monday.

Course it has already spiked up further since doing that and they're all -10-20% at the moment so WTF do I know?

 

[WattsHappening]

I'd like to think I contributed to today's move with my usual impeccable timing as I made the following trades early this morning when the SP was around $785.

Sold several 7/29 CC$925.
Sold a couple of Jan 2023 C$500LEAPs I've been sitting on, with the anticipation of rolling them to March 2023 for no debit.

Poor timing (as usual), but I'm not complaining! I still feel good about the first trade. And I think there will be another opportunity on the second one.

 

[samppa]

methinks there is reverse tomorrow...

i am curious if anyone is thinking of 7/22 buy-write 810 with 800cc 18 credit, 1 DTE

or is that a good/bad idea

well.. if it really reverses you'll end up with shares that have cost basis of 792, not that nice if sp drops back to 700 or below and stays there..

 

[corduroy]

Not doing that, but I did sell a buncha $900 CCs for 7/29 just over $4 a share with the idea the reversal theory might let me grab a cheap profit late tomorrow and then re-open something else Monday.

Course it has already spiked up further since doing that and they're all -10-20% at the moment so WTF do I know?

After 7 green days in a row capped by a 10% surge, I'd be shocked if we didn't cool down tomorrow and next week. I also opened some $910s for next week.