Lots of option flow on TSLA, big big big bets being made. Just be careful especially as it has just breached the 310 resistance.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
BrownOuttaSpec
Active Member
Very helpful! I was thinking about doing a flat roll but now I'm looking at rolling my 11/18 283.33/350 BPS to 2x 12/16 295/330 BPS for a very small credit.
Seems like a tiny bit of added margin for a much higher chance of expiring worthless in December, anyone have any thoughts on concerns about that move?
learned 3 things today (noting them so i can save the post for future reference):
1) let the BW go; next week if sp=310 (ie too high) then STO CSP -p300 @3
2) if sp is rising, roll BW up (ie 280 to 290) for even credit; there is no cash income next week but there is $10 gain via share appreciation if 290 is called away; make sure new strike is below current sp; works only if not relying on weekly cash income
3) for BPS in trouble, do roll-split; this needs margin; less manageable due to tighter spreads
1) let the BW go; next week if sp=310 (ie too high) then STO CSP -p300 @3
2) if sp is rising, roll BW up (ie 280 to 290) for even credit; there is no cash income next week but there is $10 gain via share appreciation if 290 is called away; make sure new strike is below current sp; works only if not relying on weekly cash income
3) for BPS in trouble, do roll-split; this needs margin; less manageable due to tighter spreads
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TheTalkingMule
Distributed Energy Enthusiast
This is basically what I've been doing with my DITM BPS that were bordering on unsalvageable this spring/summer.
Months back I widened the spreads slightly and rolled out for small credit. These were $100 spreads pre-split with both legs ITM. Yikes. The market will happily let you "throw good money after bad". My faith in TSLA allowed me to know we'll inevitably rise as 3Q and 4Q profits approach.
With them still ITM a couple months ago, I was forced to punt again and used the "2x method" above to roll for free or slight credit while lowering the short strike dramatically and widening the total spread(cash margin) by a hair.
You are 100% correct this leaves the spreads far less "manageable", but I felt pretty sure we'd cross $300 soon enough and at worst I'd be able to roll out another month or two at the same strikes for credit.
So far, so good. My first batch are coming up at 9/30 expiration at $310/267. If I can't expire or close them next week, I can always roll to Nov for likely a decent credit. Or Jan if Powell really says something crazy tomorrow. That gives the market time to absorb 3Q(or 4Q) earnings and reprice TSLA. One would hope!
just waiting for price action retest 311-313 zone prior to Fed, if broken it will be green for a while.
Option income should be the gravy or a small portion of your required income needed to live IMO. I plan on having enough investments to cover my expenses using the 4% rule and then supplement my income by selling options.
I sold some more $335cc and a couple of I dare you $313.33's.
I sold some more $335cc and a couple of I dare you $313.33's.
john tanglewoo
2012 Roadster Owner
I'm piecing together an IC for 9/23 , opened the high side -330c/+355c , I have an order in to pair the low end at -288.33p/+263.33p ... it didn't take this morning when we were at 306. This IC is to replace income if I have to roll up B/W CC to next week to improve strike.
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Sorry, not in front of computer but mostly 320-325 strike calls for this week and next week and one very curious 400K bet for one month out 350 strike.
I’d say this is big money making bets. I haven’t seen any significant option flow on TSLA and that changed today. I’m not convinced that this is the Pre P&D run up.
In terms of price action 315 will be a big level. If we close anywhere near that today I’d say we gap up tomorrow even with the fed noise.
Massive 22,000 10/07 c330s traded today. Today’s action for 9/23 is mostly 310s, for 9/30 is mostly 320s. Bullish? Also, what just happened to the SP at 13:00? Traders back from lunch? Edit: so this was probably just today’s TA trading. Barchart.com that others have posted about was showing 13-wk high at 314.67, Pivot Point 1st Resistance Point at 313.34, and the high for today at 313.33.
Anyway, I’m mostly in 310 straddles or p300/p305-c310 tight strangles for 9/30 and one 300 straddle for 10/21 (probably not a great position, and will roll up as needed next month).
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It feels like the NASDAQ has sold off on the Fed meeting rumor over the last week. Hopefully green to end the week regardless of the news tomorrow. I'm just not confident enough to trade on this feeling....
Lol. The 500 $330 -Calls I sold this morning are on this report.
Fingers crossed, but I can't help but feel that Powell is going to remain hawkish with his comments.
I'm listening to the Good Soil Investment weekly chat, and Emmet Peppers mentioned rumors he's hearing (I believe he mentioned traders) that Powell is currently specifically targeting stock prices as an expected outcome of the Fed's interest rate decisions. Not good if true.
john tanglewoo
2012 Roadster Owner
Sorry just a quick follow up, but is there even enough premium for expirations like that? The -c350 was trading at 0.06 just a moment ago.
Per @samppa 's suggestion above. I wasn't able to trade this morning when I would like to have done this. But on the recent dip I just STO JUN2024 $363.33 put and set a GTC for the JUN2024 $366.67...
Let's see how this goes. Will be a long road down to $340 at this rate.
Let's see how this goes. Will be a long road down to $340 at this rate.
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