Wiki Selling TSLA Options - Be the House

[OrthoSurg]

I saw my broker account director dancing now that I have to pay 3 times the fees for the same premium income.

I find the hardest part to rewire my brain to decide which strike price to select. Used to be tempted by the $1.50 premium and now will have to downgrade to $0.50 to avoid being 3x more greedy!

 

[scubastevo80]

Has anyone checked premiums on 5-8 DTE BPS or BCS? I was looking on Thurs/Fri and it seems going 15% OTM is only yielding about 1% for $10k of risk. This felt closer to 2% pre split and I could go closer to 20% OTM. I may sit on my hands a bit while I figure out next steps. I am also in the CC boat but may wait to see if we get another leg down (will buy LEAPS) or a run upward (will sell calls).

 

[adiggs]

I saw my broker account director dancing now that I have to pay 3 times the fees for the same premium income.

I find the hardest part to rewire my brain to decide which strike price to select. Used to be tempted by the $1.50 premium and now will have to downgrade to $0.50 to avoid being 3x more greedy!

I find myself doing a lot of 3x / 1/3rd math to translate back to what I'm familiar with.

As a for instance I have a good insight / feeling for an 870 share price, but not 290. If I put on a 250 strike put that doesn't seem all that far away, but its really a 750 in presplit money, and that's a long ways out. Stuff like that.

I figure it'll be a month or two and I'll be thinking in the new money.

 

[ReddyLeaf]

Has anyone checked premiums on 5-8 DTE BPS or BCS? I was looking on Thurs/Fri and it seems going 15% OTM is only yielding about 1% for $10k of risk. This felt closer to 2% pre split and I could go closer to 20% OTM. I may sit on my hands a bit while I figure out next steps. I am also in the CC boat but may wait to see if we get another leg down (will buy LEAPS) or a run upward (will sell calls).

Warning: Be very careful selling options this week. Looking back years, when the difference between the upper and lower Bollinger bands approached 10%, the SP was primed for a significant move, usually up. Calcs: (312.33-282.06)/297.19=10.2%. This is likely one reason why premiums are low, because short term IV is low. Historical, this has been a great time to buy options. Short term catalysts could be (1) “end of month” buying (monthly 401k’s) either Wednesday or Thursday, (2) normal Monday buying, (3) anticipation of August China sales numbers, (4) retail buying due to 1/3 SP, (5) macro dump due to Fed et al. Longer term, Q3 numbers. Given the situation, I have an inclination to buy Friday calls.

Edit: Right before the close last Friday, I closed out all my 9/2 CCs for about 40% 1-day profit. I just didn’t trust Monday.

 

[bballshinobi]

Stock split forced naked short sellers

I saw my broker account director dancing now that I have to pay 3 times the fees for the same premium income.

I find the hardest part to rewire my brain to decide which strike price to select. Used to be tempted by the $1.50 premium and now will have to downgrade to $0.50 to avoid being 3x more greedy!

How much fees are you paying? With Merrill Edge I am paying $0.65 per option (not $65, literally $0.65) trade, which is really peanuts in the grand scheme of things.

 

[WattsHappening]

Stock split forced naked short sellers


How much fees are you paying? With Merrill Edge I am paying $0.65 per option (not $65, literally $0.65) trade, which is really peanuts in the grand scheme of things.

Same with Schwab. $0.65 per option. Not a factor.

 

[Oil4AsphaultOnly]

Stock split forced naked short sellers


How much fees are you paying? With Merrill Edge I am paying $0.65 per option (not $65, literally $0.65) trade, which is really peanuts in the grand scheme of things.

Well ... it's not a big deal unless you're trading BPS or BCS, then it's $1.30 per position to open and another $1.30 to close. Yoona posted about 6 figures in trading commissions at one point, and because she trading spreads frequently. Can't find the post though.

 

[TheTalkingMule]

Well ... it's not a big deal unless you're trading BPS or BCS, then it's $1.30 per position to open and another $1.30 to close. Yoona posted about 6 figures in trading commissions at one point, and because she trading spreads frequently. Can't find the post though.

Sometime in the pandemic Fidelity switched to no commission on BTC orders <=$.65 so that helped a bit.

 

[juanmedina]

Well it looks like a crappy day tomorrow. BPS here I come.

 

[MaxPain]

I pay $0.50 with Schwab and $0 when closing out contracts that are less than $0.05. All it took was a phone call to ask for a reduced price.

 

[Yoona]

Well ... it's not a big deal unless you're trading BPS or BCS, then it's $1.30 per position to open and another $1.30 to close. Yoona posted about 6 figures in trading commissions at one point, and because she trading spreads frequently. Can't find the post though.

here you go:

i am business as usual - IC/CC 3-4 DTE + daytrade 30 DTE + buy/write CC + daytrade stocks

just finished doing my taxes... 700+ trading transactions last year and paid $180k in fees!

 

[bballshinobi]

$1.30 is still such a small amount though, unless you guys are daytrading BPS/BCS and take profit when you have a small gain? From what I’ve reading on this forum, you guys usually close when you are 40-80% in the green so $1.30 is minuscule.

If @Yoona has $180k in fees, she’s probably making $10+ million a year? Lol

 

[Max Plaid]

Well it looks like a crappy day tomorrow. BPS here I come.

I'd be very careful with BPS from here, might bounce, might capitulate and drop a lot lower, fast, anything possible I would think

I'm bullish as hell on $TSLA from here, expecting great things from the Q3 results, but might be lost in the macro noise

And we have the Twitter shitshow that could still throw a few curveballs

A time of extreme risk, IMO

 

[Yoona]

I'd be very careful with BPS from here, might bounce, might capitulate and drop a lot lower, fast, anything possible I would think

I'm bullish as hell on $TSLA from here, expecting great things from the Q3 results, but might be lost in the macro noise

And we have the Twitter shitshow that could still throw a few curveballs

A time of extreme risk, IMO

i am thinking the same thing, more red than green days ahead in the short-term

(personal opinion and please please i hope to be wrong)

perhaps i may only stay with buy-writes for now?

and study/learn how to be better in delta-hedging and doing more IV trading than directional trading; brx140(?) had a lot of posts on this, i need to dig them up

 

[Max Plaid]

i am thinking the same thing, more red than green days ahead in the short-term

(personal opinion and please please i hope to be wrong)

perhaps i may only stay with buy-writes for now?

and study/learn how to be better in delta-hedging and doing more IV trading than directional trading; brx140(?) had a lot of posts on this, i need to dig them up

Yeah, I'm just going to be selling cc's against my shares, with a pause end of the month for the P&D - with the very conveniently timed 9/30 expiry

 

[SebastienBonny]

Yeah, I'm just going to be selling cc's against my shares, with a pause end of the month for the P&D - with the very conveniently times 9/30 expiry

Same. Only hope to stay around my avg cost base and keep getting a premium that's worth it.
1% weekly income is my main goal, but .75% or even lower is acceptable to go further OTM when picking a strike under avg cost base.
You gotta get what the market is giving you

 

[BrownOuttaSpec]

Warning: Be very careful selling options this week. Looking back years, when the difference between the upper and lower Bollinger bands approached 10%, the SP was primed for a significant move, usually up. Calcs: (312.33-282.06)/297.19=10.2%. This is likely one reason why premiums are low, because short term IV is low. Historical, this has been a great time to buy options. Short term catalysts could be (1) “end of month” buying (monthly 401k’s) either Wednesday or Thursday

I agree. Not only be 401k buying but Tesla Employee stock purchase program (ESPP) buying too. Wasn't that the reason most people were speculating that the stock split would happen before the end of August back in March when the additional share vote was first announced?

I am not sure how the ESPP works with the discount (Does the money pool in an account and then buy shares at the end of Aug?) but with the new Texas and Germany factories and therefor employees it would be more people in the ESPP than ever before.

 

[MP3Mike]

I agree. Not only be 401k buying but Tesla Employee stock purchase program (ESPP) buying too. Wasn't that the reason most people were speculating that the stock split would happen before the end of August back in March when the additional share vote was first announced?

I am not sure how the ESPP works with the discount (Does the money pool in an account and then buy shares at the end of Aug?) but with the new Texas and Germany factories and therefor employees it would be more people in the ESPP than ever before.

I could be wrong, but I think Tesla issues new shares for the ESPP purchases, so that doesn't produce any market buying pressure.

 

[saniflash]

I could be wrong, but I think Tesla issues new shares for the ESPP purchases, so that doesn't produce any market buying pressure.

Agreed, at least that's how all ESPPs work that I know.

 

[OrthoSurg]

Stock split forced naked short sellers


How much fees are you paying? With Merrill Edge I am paying $0.65 per option (not $65, literally $0.65) trade, which is really peanuts in the grand scheme of things.

$1.65/contract