Wiki Selling TSLA Options - Be the House

[intelligator]

The 7/22 775 CC had .04 of time value left so I went ahead and put in an order rolling to next week 780 , filled for $5 just before the drop... I could have improved the strike some. Oh well, another week I can keep the shares and look for a similar roll.

 

[Drezil]

The 7/22 775 CC had .04 of time value left so I went ahead and put in an order rolling to next week 780 , filled for $5 just before the drop... I could have improved the strike some. Oh well, another week I can keep the shares and look for a similar roll.

I rolled everything that was <0.1 theta out & up as well..
And then again after we spiked.

Then i noticed that 1 thing had formed a bull call spread (started as 720/720 -> 730/720 -> 735/720) worth "only" $13 with $2 to gain & $13 to lose. We just peaked at 845 .. i then went on and closed it.

rolled the -800c this week to -820c next week and when theta dropped hard again (because 845 SP) rolled out one week further to -845c.

Position now is: Aug 05 -845c/Aug 26 +800c.
2 options:
- roll out & up when we pass ~860 (thats the point when the diagonal should go delta-negative), let theta work in that time
- pro: more theta collected
- pro: higher delta compared to the long calls in case we go down
- con: if SP climbs too high too fast (remember: aug 04 is shareholder meeting) further rolls will be harder
- roll out & up as far as possible now forming something like a 900/800 call spread
- con: theta negative
- con: less protection if we drop much between now and expiration
- pro: if SP rises fast & above 900 max-gain will be much higher.

I was hoping that we fall below 800 today .. but chickened out yesterday & rolled to next friday before it got even worse... but 820 next week is also "sporty" for an expiry target.. -.-

 

[Discoducky]

No, we will approve the ability for the Board to issue additional shares. Then at some later time the Board will approve a split.

Yep, my bad, I knew that, should have said I assume the board will approve the split post-haste.

Looking like my $860 CCs are looking safe, but I'll be looking to sell more CCs for 7/29 @$950 if we start to test the $850 call wall today.

Then, just to reiterate, I'm out for the ASM week as I like to just 'eat popcorn and watch'.

 

[ZsoZso]

As you can see my sacrifice worked!
But now I have a few -800CC that is getting deeper ITM.
I know, I should have closed or rolled them yesterday before we hit 800, but I had my hopes in MMs to protect that 800C wall
I am very disappointed in them, this morning they seem to have tried to push the SP down but gave up pretty quick.

So now I am asking for not-an-advice: should I roll these to next week, later or close them at the current loss before it gets worse?
I do not want them exercised because it is in a taxable account and those shares have a purchase price in the 70s (pre-split 360s), so the tax hit would be much worse than the loss for closing them.

ps: next week Fed report, that might cause a macro drop, so maybe that can save these if I roll ?

I rolled them to next week -830CC for $2 credit/sh when we dipped around 11:45.
Not expecting them to expire worthless, but I may have a better chance to close them for smaller loss if we get a deep red day sometime during the week.

 

[Knightshade]

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?

All around 25% green now

Less dip than I originally thought... so question is do I call it a decent 24ish hr trade and close em before the weekend as planned- or let em ride into next week thinking premium will only get worse if I close now and look to reopen monday?

 

[traxila]

In my quest for ridiculously stress free income and an attempt at market timing, I sold lotsa JUL 29 1050 calls at 0.40 a piece, and at JUL 29 1010 calls (for the risky ones lol) when SP was in 830s this am.

Think I am OK.

EDIT: Sold a bunch of JUL 29 1030 at 0.53 as well.

 

[ice]

7/15 -750C $8.8 > $0 $8.8 credit
7/15 -770C $17.78 > $0 (rolled from 7/8 $750c), total credit for 2 weeks $2.02+8.08 = $10.10

STO 7/22 -750C $25.50 (SP around $746) to replace the 7/15 -750C

haven't opened a replacement position for the 7/15 -770C yet, will wait to see if SP goes higher today, tues or wed.

side note: Model Y interest estimator is sitting at 6.1% right now, with the recently Bank of Canada announced 1% rate hike, I m expecting 7.1% soon, and by the time the delivery happens, might end up paying 8-9% interest on the car. It becomes something ridiculous, car was $90k CAD but at 8% interest it ends up costing like $140k or something like that. The idea is as the car loan keeps going up, I m more and more leaning towards paying cash for it. But since the car isn't going to be delivered anytime soon, for the shares I need to pay for the car (about 100 shares), i will continue to sell aggressive CC to grind as much premium as I can, rolling when it makes sense but also would be very happy to have it assign at current prices.

The other note is the margin balance has a similar situation, but the margin loan is in USD so is based on the USA fed rate not Bank of Canada, current interest 6.25%, but if the fed hikes 1%, will be looking at 7.25 or even higher, again, same logic, will be happy to be assigned to be out of margin, but if not then sell aggressive cc, which is more than enough to pay for the interest making about 1% a week, rolling if necessary.

BTC 7/22 -750C $71.40 (SP around $821.06) STO 7/29 -760C $70.93 (SP around $825.88) $10 strike improvement $0.47 debit
BTC 7/22 -730C $91.58 (SP around $821) STO 7/29 -740C $82.22 (SP around $819.99) $10 strike improvement $9.36 debit

 

[TheTalkingMule]

Pretty nice pushdown here. If MM's make it all the way to 799, might be a good spot to sell some 7/29 BPS.

 

[samppa]

I'm gonna refrain from selling puta for now.. odds are high we reverse down next week.

 

[Knightshade]

For put spreads I'm sticking to the Yoona proven safe "sell on a Monday dip with a short strike 20% below whatever the Monday open is" method.

 

[adiggs]

Well you got a good price. Sold those 900 CCs for $1.60 2 days ago because I was expecting a push down after the earning calls. Now it seem the stock will go to $1200 with no train stop

I got 2.20 for mine. Seems to be a strike folks around here like to sell.

 

[euro2012]

I sold $900 CC expiring 7/29 yesterday for $4.69, too early. Tried to close them today for $2.50, but just missed. I think the low today was $2.60?

 

[ReddyLeaf]

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.

Same with me. Definitely got steamrolled. STO $21, BTC $60-70. Oh well, now my p1000s and p1100s are closer, but still so far.

 

[BornToFly]

All my spreads stayed OTM this week. Yeah! But I had to help a friend with a surgery his morning, and then I rushed out of the hospital to go on my bike ride before it got to one million degrees, so I didn't even think about looking at premiums for next week. Would have sold 1000/1100 BCS if I had though of it. Oh well, hopefully we have a nice pop on Monday and I can pocket some nice premium on those.

 

[OrthoSurg]

All my spreads stayed OTM this week. Yeah! But I had to help a friend with a surgery his morning, and then I rushed out of the hospital to go on my bike ride before it got to one million degrees, so I didn't even think about looking at premiums for next week. Would have sold 1000/1100 BCS if I had though of it. Oh well, hopefully we have a nice pop on Monday and I can pocket some nice premium on those.

I was happy I didn’t have to close or roll anything at the end of the day I’m on call in a regional hospital and covering plastic surgery too and had a suppurative tenosynovitis to drain between 3PM and 4 PM I was at the emergency with pus all over my gloves. I am feeling a little bit better with my 900CCs 29/7 as the momentum seems to be cooling down a little bit however in retrospect I should have waited after earnings before opening a new position.

 

[samppa]

Same with me. Definitely got steamrolled. STO $21, BTC $60-70. Oh well, now my p1000s and p1100s are closer, but still so far.

I'm not worried, with this volatility sp will come back down eventually.. I'll keep rolling these up and pairing with puts, collecting income.
If that becomes impossible, I'll just let these assign then.
Definitely having itm calls and otm puts is better than the other way around.

 

[Yoona]

weekend puzzler and challenge to the geniuses...

so i bought shares @820 and STO 7/29 CC 820 ATM, credit 25; ok to be assigned

instead of buying shares, why couldn't i just buy a synthetic long?

• sell -p820, buy +c820, credit 2.77 (this mimics buying stock using less capital and getting paid to "buy stock")
• wait for higher peak and sell -c820, credit 25 for example (this is the cc)
• net 27.77 instead of 25
• if the 2 legs of the synthetic are timed on dip/peak, there is even more credit than just 2.77
• if expiry >820, all 3 contracts expire
• if expiry <820, buy stock 820 as usual

does anyone else do this? what did i miss? TIA! the one thing i can think of is that the broker will cancel both +c820 and -c820 because they offset each other out and in that case, i am left with a simple -p820 (and net credit from the removed c legs became cash)... this is still more income than just selling -p820 alone

The Sell Put And Buy Call Strategy | A Synthetic Long Stock

The Sell Put And Buy Call Strategy is a synthetic stock option strategy: using call and puts options to mimic the performance of a position, usually involving the purchase of a stock.

epsilonoptions.com

note: i can prevent the broker from cancelling the c legs by selling 830cc instead of 820cc

 

[juanmedina]

I was happy I didn’t have to close or roll anything at the end of the day I’m on call in a regional hospital and covering plastic surgery too and had a suppurative tenosynovitis to drain between 3PM and 4 PM I was at the emergency with pus all over my gloves. I am feeling a little bit better with my 900CCs 29/7 as the momentum seems to be cooling down a little bit however in retrospect I should have waited after earnings before opening a new position.

I ended up closing my 900's, I need to stick to my trading plan of same week to expiration 5-4 DTE trades . When we get close to 1000 I will start getting more aggressive.

 

[corduroy]

weekend puzzler and challenge to the geniuses...

so i bought shares @820 and STO 7/29 CC 820 ATM, credit 25; ok to be assigned

instead of buying shares, why couldn't i just buy a synthetic long?

• sell -p820, buy +c820, credit 2.77 (this mimics buying stock using less capital and getting paid to "buy stock")
• wait for higher peak and sell -c820, credit 25 for example (this is the cc)
• net 27.77 instead of 25
• if the 2 legs of the synthetic are timed on dip/peak, there is even more credit than just 2.77
• if expiry >820, all 3 contracts expire
• if expiry <820, buy stock 820 as usual

does anyone else do this? what did i miss? TIA! the one thing i can think of is that the broker will cancel both +c820 and -c820 because they offset each other out and in that case, i am left with a simple -p820 (and net credit from the removed c legs became cash)... this is still more income than just selling -p820 alone

The Sell Put And Buy Call Strategy | A Synthetic Long Stock

The Sell Put And Buy Call Strategy is a synthetic stock option strategy: using call and puts options to mimic the performance of a position, usually involving the purchase of a stock.

epsilonoptions.com

note: i can prevent the broker from cancelling the c legs by selling 830cc instead of 820cc

I have some synthetic longs LEAPs on some questionable gamble/lotto stocks. I didn't want to invest any cash, but still wanted some possible upside when growth rallies. I plan to just hold these for a couple years. If it works out in my favor, the puts expire worthless and I'm left with the "free" calls.

These were all entered for $0 (of course some margin is reserved for the puts).

OPEN Jan 2024 -5p/+5c
DNA Jan 2024 -3p/+3c (I was able to get 2:3 put/call ratio on these for $0)
PLTR Jan 2024 -10p/+10c

 

[BornToFly]

weekend puzzler and challenge to the geniuses...

so i bought shares @820 and STO 7/29 CC 820 ATM, credit 25; ok to be assigned

instead of buying shares, why couldn't i just buy a synthetic long?

• sell -p820, buy +c820, credit 2.77 (this mimics buying stock using less capital and getting paid to "buy stock")
• wait for higher peak and sell -c820, credit 25 for example (this is the cc)
• net 27.77 instead of 25
• if the 2 legs of the synthetic are timed on dip/peak, there is even more credit than just 2.77
• if expiry >820, all 3 contracts expire
• if expiry <820, buy stock 820 as usual

does anyone else do this? what did i miss? TIA! the one thing i can think of is that the broker will cancel both +c820 and -c820 because they offset each other out and in that case, i am left with a simple -p820 (and net credit from the removed c legs became cash)... this is still more income than just selling -p820 alone

The Sell Put And Buy Call Strategy | A Synthetic Long Stock

The Sell Put And Buy Call Strategy is a synthetic stock option strategy: using call and puts options to mimic the performance of a position, usually involving the purchase of a stock.

epsilonoptions.com

note: i can prevent the broker from cancelling the c legs by selling 830cc instead of 820cc

Why not just sell the Put and be done with it?
In this example you are selling the Put to buy the call (for about even) to cover in order to get the profit of selling a OTM call....