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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I've sold a mix of 680/720 BPS @ $1.70 and 685/725 BPS @$1.35 across my two accounts this morning. I missed the peak time to sell yesterday but today's drop has been almost as good. I've only sold about half my potential allocation for the week as I'm leaving some powder dry for any moves after the FOMC announcement.
On the dip, my STO 7/29 745 CSP order for $5 filled. 788 being tested, breached, would like to see us float back above.
I bought $750's this morning for $4.50 each at open.
Will look to unload tomorrow before Fed announcement.
Just passing along comments from my advisor to my question whether to roll long calls/LEAPs to numbers divisible by 3 for convenience and liquidity (bid/ask) purposes. Please comment:
Sounds like they might be split to the closest/next lower $0.50………
- There is no reason to change them, they will be broken into dollars and cents.
- The time value of money part of the equation is computerized (and lower strike prices already have $.50 increments)
- If you don’t like the odd amounts, I can change it to whatever you would like.
Sounds like they might be split to the closest/next lower $0.50………
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Managing $700 and $755 CC for this Friday 7/29 — $755s show a 60% gain from 7/21, but the value is still 7x the credit received on the roll from 7/22 $750, so I’m going to let them ride through the Fed announcement expecting further decline. A $5 or $10 one-week roll on the $700 have improved a few bucks, so same logic.
I was successful (ok, lucky) with my first try with @Papafox's strategy to roll LEAPs out.
Sold Jan 2023 C500s on Thursday as the SP was climbing and immediately put in a GTC order to purchase Mar 2023 C500s for the same price. The order executed earlier this morning. Per his recommendation, I went slow and just did two contracts. I still have a few more to do.
Sold Jan 2023 C500s on Thursday as the SP was climbing and immediately put in a GTC order to purchase Mar 2023 C500s for the same price. The order executed earlier this morning. Per his recommendation, I went slow and just did two contracts. I still have a few more to do.
corduroy
Active Member
Interesting, so by splitting this into trades on up/down days you were able to get a "free roll". Is the main risk of this strategy that the SP keeps going up and you never get to buy the later call?
Expect to see 740 before bouncing for good. I'm betting we go up after FOMC, but 740 is a very strong magnet. We have full gap fill around 745. EMA 20 (also mid BB) at 740 by Thursday or so. Downward trendline needs to be retested, intercepted by the previous fib channel which acted as a very strong resistance for the last 2.5 months.
Yes, exactly.
@Papafox recommends doing it in the opposite order, buy the later call first on a down day/time, then sell the earlier one after the SP increases. But I don't have available cash to do it this way.
So I sold first as the SP was spiking Thurs morning after earnings. My intention was to buy back later in the day (expecting the MMs would do their typical shenanigans). Unfortunately, after a brief pause, the SP kept going higher on Thursday. But I had put in a GTC order and it executed today. I want to say the SP was around $782 when I sold. And the SP was around $770 when I bought this morning.
And yes, if the SP kept increasing, I would have been SOL.
Another case of patience being a virtue.
I thought about closing the 780CC on my buy-write before market close today at 65% profit in case we went back up tomorrow, but the hope of further SP drop and more profit kept me from doing it. Looks like I made the wrong decision. Just no way to predict....
I have 0729 810P and 905C - closed the 905C today and hoping the 810P will expire by the end of the week. If not, buying shares at 810 is not bad in the big scheme..
I closed my 900CCs a bit too early yesterday for 50% profit, could have had better today, we never know. However I am planning to sell 20% OTM CC 5/8/2022 tomorrow before close
The $850 wall went up a bit and the $900 wall went down a bit. I'm waiting until after Fed news unless we spike to 850 prior.
wow the premiums are horrible I haven't traded at all this week.
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Forgot to update- was out of these yesterday making it a day trade.
In for $4.50 - out for $8
Not the highest or lowest on the buy/sell but plenty of whiskey
money
Call premiums have been terrible all week but Put premiums not so bad, although timing has been critical.
With the 685/725 BPS I sold earlier yesterday @ $1.70, if I'd been able to wait until 11.55amET I could have gotten over $3 per contract (did get some more @ $2.65). This morning these BPS have been down to 30 cents.
I still expect to see some more significant movements after the FOMC interest rate decision is announced at 2.00pm ET. We typically see some wild swings in macro between when the numbers come out and when Powell speaks.
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i am also just daytrading ahead of FOMC... simply taking what the market is givingForgot to update- was out of these yesterday making it a day trade.
In for $4.50 - out for $8
Not the highest or lowest on the buy/sell but plenty of whiskey
still playing -c820, +26% in 30 mins today, closing it now
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