Wiki Selling TSLA Options - Be the House

[Max Plaid]

You're all a bunch of pussies!

Friday I sold 10x -p900 @$25,1 -> way too early as it turned out... today I got assigned 500 $TSLA from the 5x -p925's I let expire

So today, STO 5x -c900 @$25.1 & 5x -c925 @$15.1, plus 100x GOOGL -c123 @$0.53 for gravy

Ride the bloody , eh?

 

[jeewee3000]

But did you sell any? I missed the 2nd peak to $915, but think we could see a push to test the $950 wall tomorrow, upper BB is $966 and $911 is 200MA

My positions for this friday 8/12:

-820p/+760p (bps on put side)
-1000c (cc's on call side)

Dunno what it's called (disabled semi-strangled Iron Condor?) but it reflects me expecting us jumping around a bit this week between 800-1000.

 

[jeewee3000]

You're all a bunch of pussies!

Friday I sold 10x -p900 @$25,1 -> way too early as it turned out... today I got assigned 500 $TSLA from the 5x -p925's I let expire

So today, STO 5x -c900 @$25.1 & 5x -c925 @$15.1, plus 100x GOOGL -c123 @$0.53 for gravy

Ride the bloody , eh?

He's back, baby!

 

[scubastevo80]

Well, I did something totally different -
Went with the shotgun spread - All BTO Calls
08/26 - $1200's
09/23 - $1200's
10/16 - $1200's
12/21 - $1200's
01/23 - $1200's

This was quite fun - I haven't spent this much money on options since before I learned to be the "house"
no stop loss until after 08/17 for sure.

I bought a 1050/1100 call debit spread this morning for 8/26, as I think we could easily run $100 points in the next two weeks if macros eek higher. Good luck - I hope that $1200 comes soon.

 

[UltradoomY]

I bought a 1050/1100 call debit spread this morning for 8/26, as I think we could easily run $100 points in the next two weeks if macros eek higher. Good luck - I hope that $1200 comes soon.

If the CPI print Wednesday is good --> great then I think we are running.

 

[jeewee3000]

If the CPI print Wednesday is interpreted as good by the market --> great then I think we are running.

FTFY. I.e. there is rarely great logic to it.

 

[juanmedina]

I just sold a few 1000cc from $2-2.6.

Closed these at $1.1-1.3

 

[Yoona]

4 fun "coincidence" facts:

• today's Close = PM Low
• today's Linear Regression Trendline is 876, it is also the last big resistance today
• today's Pivot Point is 878.32, it is also the last big resistance today
• today's High is 915.6, it is also today's 2 STDDEV Channel at closing

in other news, i've been daytrading 910 on fibs (2 rounds today)

• at supp lines, STO -p910 and BTC -c910
• at res lines, BTC -p910 and STO -c910
• net=30% of avg weekly income

 

[MikeC]

Feels like we're maybe starting to stabilize around 900 after spending a few months around 700. I have some home renovations coming up so I'm very tempted to sell an ATM straddle tomorrow. I'm trying to be more like @Max Plaid - needing to raise cash anyway takes away a lot of the stress from selling at aggressive strikes.

 

[Jim Holder]

Question for the pros here, I notice some ppl sell TSLA CC's for, say, $1,150 strike far into 2023/2024, which gets hefty premium today.

If I’m planning to STO when TSLA is ~$920 and only hold a few days (or hours) as TSLA swings down to $870 (as the past couple days) and BTC cheaper then, do those longer-term expiry dates (2023/2024) net better profit than a closer DTE at the same strike but, say a DTE of 12/16/22?

Asked differently, for a short term volatility flip for profit, is it more profitable to have a nearer or very far out CC DTE for a better STO and BTC spread (more profit) when TSLA drops $40-50 bucks during the day?

(Is there other risk when doing this?)

Thanks in advance!

 

[mongo]

Question for the pros here, I notice some ppl sell TSLA CC's for, say, $1,150 strike far into 2023/2024, which gets hefty premium today.

If I’m planning to STO when TSLA is ~$920 and hold a few days (or hours) as TSLA swings down to $870 (as the past couple days) and BTC cheaper then, do those longer/term net better profit than a closer DTE at the same strike but, say a DTE of 12/16/22?

Asked differently, for a short term volatility flip, is it more profitable to have a nearer or very far out CC DTE for a better STO and BTC spread (more profit) when TSLA drops $40-50 bucks during the day?

(Is there other risk when doing this?)

Thanks in advance!

Non-advice (other than read the early pages with the tuorial links)

The far out call sells are sometimes done to raise cash now without the tax implications of a stock sell.

Short term flips get greater movement with shorter expiry and closer strikes.

Delta is option value movement per $1 if stock goes price move. The further OTM, the lower the Delta.

Theta is option value movement per day of time. This is less important if you are doing a quick flip, but matters alkng with expiry if the trade does upsude down on you and you need to wait it out.

Options profit calculator lets you run scenarios.

 

[Jim Holder]

Non-advice (other than read the early pages with the tuorial links)

The far out call sells are sometimes done to raise cash now without the tax implications of a stock sell.

Short term flips get greater movement with shorter expiry and closer strikes.

Delta is option value movement per $1 if stock goes price move. The further OTM, the lower the Delta.

Theta is option value movement per day of time. This is less important if you are doing a quick flip, but matters alkng with expiry if the trade does upsude down on you and you need to wait it out.

Options profit calculator lets you run scenarios.

Thank you!

 

[Yoona]

how to fix an IC using net delta strategy (to buy more time; i've tried this before and it reduces the stress caused by "fix this problem asap")

5 Iron Condor Adjustments that will help you manage your trade

Iron Condor Adjustments are just as important as entry and exit. There are a number of ways a trader can defend this trade when the underlying makes a move.

mrtoptick.com

"4. Delta Hedge. Another Iron Condor adjustment is to use NET delta to hedge this position. This is one of my favorite adjustments because by removing some of the directional exposure, this buys me time to wait and see how I need to adjust this position further. To hedge an Iron Condor using Delta I can use stock or options of the underlying instrument. Let’s say my NET delta of an Iron Conor is -20. I can buy 20 shares of the underlying to cut my NET delta to 0 OR I can buy two 10 delta calls that will add a total of 20 positive delta and will neutralize my directional exposure. If the underlying continues to move against my position, I will then remove my hedge and roll up or down the troubled spread farther away from where the underlying is trading. By using a hedge for this adjustment, it helps to make up some of the losses accumulated by either short spreads of an Iron Condor."

 

[JustMe]

Question for the pros here, I notice some ppl sell TSLA CC's for, say, $1,150 strike far into 2023/2024, which gets hefty premium today.

If I’m planning to STO when TSLA is ~$920 and only hold a few days (or hours) as TSLA swings down to $870 (as the past couple days) and BTC cheaper then, do those longer-term expiry dates (2023/2024) net better profit than a closer DTE at the same strike but, say a DTE of 12/16/22?

Asked differently, for a short term volatility flip for profit, is it more profitable to have a nearer or very far out CC DTE for a better STO and BTC spread (more profit) when TSLA drops $40-50 bucks during the day?

(Is there other risk when doing this?)

Thanks in advance!

You’ll get a lot of good advice in this thread. But there’s no greater teacher than your own experience (especially losing money )

I suggest you start out super safe and low stakes until you get a feel for how options prices change with the stock price and day to day.

 

[BornToFly]

how to fix an IC using net delta strategy (to buy more time; i've tried this before and it reduces the stress caused by "fix this problem asap")

5 Iron Condor Adjustments that will help you manage your trade

Iron Condor Adjustments are just as important as entry and exit. There are a number of ways a trader can defend this trade when the underlying makes a move.

mrtoptick.com

"4. Delta Hedge. Another Iron Condor adjustment is to use NET delta to hedge this position. This is one of my favorite adjustments because by removing some of the directional exposure, this buys me time to wait and see how I need to adjust this position further. To hedge an Iron Condor using Delta I can use stock or options of the underlying instrument. Let’s say my NET delta of an Iron Conor is -20. I can buy 20 shares of the underlying to cut my NET delta to 0 OR I can buy two 10 delta calls that will add a total of 20 positive delta and will neutralize my directional exposure. If the underlying continues to move against my position, I will then remove my hedge and roll up or down the troubled spread farther away from where the underlying is trading. By using a hedge for this adjustment, it helps to make up some of the losses accumulated by either short spreads of an Iron Condor."

That is really interesting. How would we figure out the net delta of the IC without his software?
Edit: Does subtracting the Delta of the short call from the long call and multiplying by the number of contracts work?

 

[ReddyLeaf]

Just noticed that ~950 looks like some major resistance. Hopefully we will break out soon, running up to the split, but I don’t know…..

 

[Max Plaid]

Feels like we're maybe starting to stabilize around 900 after spending a few months around 700. I have some home renovations coming up so I'm very tempted to sell an ATM straddle tomorrow. I'm trying to be more like @Max Plaid - needing to raise cash anyway takes away a lot of the stress from selling at aggressive strikes.

I'd never recommend anyone copies any of my trades, but on the matter of straddles, I'd say that being comfortable with allowing the one half to exercise is a game-changer. On a typical week, 4-5 FTE, an ATM straddle will net around $50 per put&call pair, that's a lot of wiggle-room either side of the strike and if you don't mind to buy the stock or sell some shares, then you're golden

 

[jeewee3000]

Question for the pros here, I notice some ppl sell TSLA CC's for, say, $1,150 strike far into 2023/2024, which gets hefty premium today.

If I’m planning to STO when TSLA is ~$920 and only hold a few days (or hours) as TSLA swings down to $870 (as the past couple days) and BTC cheaper then, do those longer-term expiry dates (2023/2024) net better profit than a closer DTE at the same strike but, say a DTE of 12/16/22?

Asked differently, for a short term volatility flip for profit, is it more profitable to have a nearer or very far out CC DTE for a better STO and BTC spread (more profit) when TSLA drops $40-50 bucks during the day?

(Is there other risk when doing this?)

Thanks in advance!

Your question has been answered already (TL;DR: the further the expiration date is, the less the option pricing is impacted by short term 'small' SP fluctuations).

Here is some definite advice though:

- don't sell LEAP cc's if you can avoid it, unless you really know what you are doing (for example it's part of a LEAP straddle or another fancy option strategy, or we're breaking ATH's and you want to derisk your stock holdings);
- IF you would sell LEAP cc's, preferably do it when SP and IV is high.
- don't forget ITM options have risk of early expiration. Odds are low with LEAPS - due to high remaining time value - but for example deep ITM options have some risk of early exercise.

If you want to play short term flips, there are much more suitable strategies around. Which one is "best"? None. It depends on your trading style, portfolio/position size, experience level.

Personal favourite "easy strategy" for (very) short term flip: when the stock shoots up in the first 15 minutes after open and you expect not much further rise, abuse the inflated IV by selling a short term (weekly, max 2 weeks out) cc at a strike that you wouldn't mind selling at short term. Wait out the day, watch SP being walked down and IV dropping and buy back the cc before the close at a profit. Risks: you lose your shares at the chosen strike price.

Good luck. Don't be afraid of asking more specific questions about strategies you'd like to try. We have many posters here that are very helpful and a lot more options-savy than I am.

Oh, and start small when 'testing', best advice around here I think.

 

[Drezil]

4 fun "coincidence" facts:

• today's Close = PM Low
• today's Linear Regression Trendline is 876, it is also the last big resistance today
• today's Pivot Point is 878.32, it is also the last big resistance today
• today's High is 915.6, it is also today's 2 STDDEV Channel at closing

View attachment 838242

in other news, i've been daytrading 910 on fibs (2 rounds today)

• at supp lines, STO -p910 and BTC -c910
• at res lines, BTC -p910 and STO -c910
• net=30% of avg weekly income

Can you add the time of your trades in the graph or provide a list of times & sales? I would like to see what you see in the moment the trade fires..

 

[UltradoomY]

Question for the pros here, I notice some ppl sell TSLA CC's for, say, $1,150 strike far into 2023/2024, which gets hefty premium today.

If I’m planning to STO when TSLA is ~$920 and only hold a few days (or hours) as TSLA swings down to $870 (as the past couple days) and BTC cheaper then, do those longer-term expiry dates (2023/2024) net better profit than a closer DTE at the same strike but, say a DTE of 12/16/22?

Asked differently, for a short term volatility flip for profit, is it more profitable to have a nearer or very far out CC DTE for a better STO and BTC spread (more profit) when TSLA drops $40-50 bucks during the day?

(Is there other risk when doing this?)

Thanks in advance!

As @mongo hinted.....

YOU NEED TO GO THROUGH THE COURSES LINKED ON THE FIRST PAGE OF THE THREAD!

Then, you should thoroughly read the wiki with definitions, common terms (BPS / Straddle/ LCC) along with the tips and tricks linked there.

Then and only then should you start to give it a go - start small (for your account balance or stress level)

EVERYONE HERE THAT IS POSTING HAS LOST MONEY!
And will do so again!
There are tax implications if not trading in a retirement account, wash sale rules, margin, getting run over and fixing things.

There is no free money, you will have to get your hands dirty and you will get lucky with wins... be careful and don't get greedy.

Please please please please - take the time to educate yourself on the greeks and the basics.
Everyone loves to help but we hate to see anyone lose money that could have been prevented.

And if that doesn't scare you, you make it through the courses, are dreaming of Theta burn and selling ATM Puts or Calls, maybe you too can be "The House"

Cheers