Wiki Selling TSLA Options - Be the House

[OrthoSurg]

Now, I am a bit sad I rolled my 310 CCs 23/9 to 330 CCs 14/10 for $2 credit when the SP breached resistance and got to 311 Tuesday. I was expecting the stock to run up going into earnings. I followed my rule to insta-roll to next resistance as soon as it breaches my strike price to remove any emotional trading. I should have done nothing and sat on my hands.

My short calls are already +68% but they could have been +98%!

 

[adiggs]

Noticeable move down on the day; therefore my trading rules (close calls, open puts on down day) leads to:
- closed the 305cc expiring tomorrow for 90%+ profit. That leaves me with a small number of Oct monthly 320s.
- open 275 csp for next Friday @ $4

Those playing it closer to the share price - that makes good sense to me. It has me thinking of splitting up some of these resources - use 2/3rds at these more distant strikes that I typically rely on and then the other 1/3rd at much closer strikes and daring some turns of the wheel. That's not a decision, just a thought.

In the context of these 275s that might have meant doing 2/3rds as many as I did, and then the other 1/3rd as 290s (or if I were feeling really over the top, 300s).


I expect more up than down these next 2 weeks into p&d. The move down today has me semi-hoping for another down tomorrow with an eye towards buying calls for p&d. That most likely won't happen though.

The up over down is a function of the Tesla story, and likely Tesla financials, overwhelming the larger macro story. I don't expect, but won't be surprised, if we see the market down and TSLA up over these 2 weeks.

 

[intelligator]

Today may have been the largest money shift to puts since May; 290 is the new 300, maybe we are oversold ... haha, ugh. Who would try to leave a 285 short leg BPS on to expire tomorrow? Giving it until noon. GLTA!

 

[Yoona]

Still have 15x -c293.33 in okay for tomorrow. If this dip persists then I'm thinking of 10x 290 straddles for next Friday - sure there's a risk I get another 1000x $TSLA, but would be at a great cost-basis and I'm bullish on the stock, regardless of the macro

i might copy this tomorrow but for smaller size as test... never had a 7-DTE SS before

 

[corduroy]

Looks like an red Friday is brewing. Good luck everyone.

I sold some 9/30 -270/250 BPS yesterday and if we keep dropping I'll STC the long legs for extra income and convert to CSPs. When I've done this before the sold long put exceeds the amount of the original BPS. I'm OK doing this to extract more $ from a "too early" trade.

 

[OrthoSurg]

SPY near June lows already about 1-2% from retesting it. Happy that TSLA is not at $210 like I expected. If market goes for the next leg lower, I am wondering how hard TSLA can drop heading into Q3 numbers and earnings.

 

[JustMe]

Looks like an red Friday is brewing. Good luck everyone.

I sold some 9/30 -270/250 BPS yesterday and if we keep dropping I'll STC the long legs for extra income and convert to CSPs. When I've done this before the sold long put exceeds the amount of the original BPS. I'm OK doing this to extract more $ from a "too early" trade.

Yes - looking profoundly bearish right now.

My gut told me the run over $300 would reverse and I closed most of the bps I had been managing and rolling for the past year on Wednesday (10/21 300/233). That turns out to have been a great and timely call. I am considering closing all the rest of my bps today and taking the loss as I’m afraid we’re going down another 10% from here.

Q3 earnings will be good but may not be enough to underpin the stock if enough funds press the “sell tech” button during a protracted downturn. Sigh

 

[ZsoZso]

Max Pain open interest chart looks to favor close around 294 (red-green cross-over):

That would be a nice step-up from premarket 282-ish, which seems unlikely in bearish overall market.
Let's hope MMs work hard to help us for a change today.

 

[SebastienBonny]

The good news is that Tesla is way higher now compared to the indexes than in June.
Don't see us getting over 290 today, but you never know.
Will probably sell call with 295 strike for next week or 300 should we rise above 290.

 

[Yoona]

my 9/30 -c280 BW (original cost basis 279):

with sp=280 dropping to my strike and it is now exactly ATM, i decided to further milk the gravy train

rolled to 10/7 -c280 BW @4.65 credit

on 10/7:

• if macros tank and ignore TSLA Q3, BW expires worthless
• if sp>280, will decide if roll or reset to a new BW (preference is nonstop roll)

 

[phantasms]

Picked up a 10/21 $330 for 3$. $2.85 now.

 

[juanmedina]

Picked up a 10/21 $330 for 3$. $2.85 now.

I got 10/7 $300 calls for $4.4. I don't know what I am doing .

I also sold 260/240 and 255/235 BPS for next week. Pure gambling here with not a lot of money.

 

[phantasms]

I got 10/7 $300 calls for $4.4. I don't know what I am doing .

Me neither!!!

 

[mongo]

Me neither!!!

View attachment 856074

Heh, 286.76 and 288.33 for today.

 

[phantasms]

Heh, 286.76 and 288.33 for today.

I tried that but JPM doesn't let me trade options that expire on the current day because they hate fun and hate TSLA.

 

[bkp_duke]

Bought a few Jan `25 350 LEAPS on the dip this AM.

 

[john tanglewoo]

Sold -c350, 30 contracts for October monthly. With the way macro is trending, there is no reason to think that the stock is going to go up 20% over the next month.

Just exited these for 74% gain at about $1,243 per day. Macro still tells me we are trending down, but maybe try to play the other side ahead of AI day?

 

[elasalle]

some long term Oct 21 340 CC sold 3-4 mths at ~ $5 back now have become short term and look like gonna expire/or easily managed
, so sold another tranche of Jan 23 400 CC's for ~ $5 and got me some Jan 25 350 Leaps

 

[john tanglewoo]

some long term Oct 21 340 CC sold 3-4 mths at ~ $5 back now have become short term and look like gonna expire/or easily managed
, so sold another tranche of Jan 23 400 CC's for ~ $5 and got me some Jan 25 350 Leaps

Quick question, what's your rationale on selling CCs when the stock is down 3-4%? I usually only like selling calls on green days as the premium is always better.

Or do you not worry as much because they are dated so far out?

 

[corduroy]

I sold some 9/30 -270/250 BPS yesterday and if we keep dropping I'll STC the long legs for extra income and convert to CSPs. When I've done this before the sold long put exceeds the amount of the original BPS. I'm OK doing this to extract more $ from a "too early" trade.

Sold the +250p's for $1.75, so now $3.25 total credit for the CSP converted from BPS. Sure, I could have sold the CSP directly today for about $5.50, but yesterday when sold the BPS, the -P was at $1.69. So I'm in a better place now, starting with the BPS, than if had I sold the CSP yesterday (but not as good as selling the CSP today).