Wiki Selling TSLA Options - Be the House

[chiller]

Thanks to all of you for sharing when you get assigned! Because of yesterday's discussion, I moved my Dec 400's out to April, and it now seems like I might have dodged a bullet.

I'm now watching the extrinsic values of my PUTs as a hawk. My Dec 340s might need to be moved soon.

I can't remember this many people here getting assigned at the same time.
I think it might be related to the significant drop leaving many of us underwater, combined with the stock split having us misjudge how far underwater we are.

Any other theories?

 

[juanmedina]

i am FOR REALSIES starting to get SICK and TIRED of tsla price action nonsense (EM distraction, daily MMD, 2-4x multiplier, capping for no reason, etc)

if sp doesn't improve by yearend, very high chance i will gradually move half of my acct to trading SPY/SPX instead

need some kind of 'diversification' for balancing

in fact, i am already daily looking at SPY/SPX summaries by bloggers/traders to learn the ropes

methinks betting my retirement income based on one man's physical/mental health is too much risk now that he is even more distracted

(mods, don't kick me)

Same here I would like to be able to cash out around $400-350... I was talking to someone about Elon stepping down and letting someone of the caliber of Gwynne become CEO and I bet the stock will go up. Retail investors are getting tired of this unjustified pain. Personally I know 3 people that just bought into Rivian and will not touch Tesla even if is a way better business.

It is crazy how one day we all thought that the Q3 results would pump the stock to the moon and now we are thinking that the stock will do nothing until the Q4 results.

 

[bballshinobi]

That's one lucky trade. The SP was rising on Tuesday until Elon announced that he was going forward with the twitter deal!

Using your crystal ball, does this mean the coast is clear for a rise towards earnings?

Lucky indeed… but we were so close to $233.33 ($700) I figured we would have a test in that neighborhood. I was able to close out my CCs around $234-235.

My crystal balls says it is revealed tonight Elon sold shares, causing a big spike tomorrow, and we melt up along with the macro for another week or so.

My vision isn’t as good as FSD so I can only see this far.

 

[dc_h]

I think Elon has a keystroke monitor on my pc. I just sold 15 covered calls and rolled 366, 375 and 400 calls to Oct 21 at 280, 285 and 290. I expect a big rally, probably twitter deal is over, no stock sales, Zelensky suddenly thanking Elon for his great peace plan and Elon will spend the weekend in Delaware biking with Joe & Dr 1st lady.

 

[bballshinobi]

Thanks to all of you for sharing when you get assigned! Because of yesterday's discussion, I moved my Dec 400's out to April, and it now seems like I might have dodged a bullet.

I'm now watching the extrinsic values of my PUTs as a hawk. My Dec 340s might need to be moved soon.

I can't remember this many people here getting assigned at the same time.
I think it might be related to the significant drop leaving many of us underwater, combined with the stock split having us misjudge how far underwater we are.

Any other theories?

I recently got assigned some deep ITM CCP (2024 $666.67). I guess people are getting margin called out there and just need cash?

 

[Yoona]

-p300 exercised overnight. Sold the shares and opened 10/21 -p300.

excuse my ignorance, i am really trying my best to understand this

if the shares were sold at a loss, wouldn't the new -p300 shares be again sold at a loss if sp doesn't rise? (delta 92 high probability ITM)

confusedddddddddd

TIA!

 

[mongo]

excuse my ignorance, i am really trying my best to understand this

if the shares were sold at a loss, wouldn't the new -p300 shares be again sold at a loss if sp doesn't rise? (delta 92 high probability ITM)

confusedddddddddd

TIA!

It's a put roll sandwich with shares in the middle.
Instead of buy to close, sell to open, it was
Assign to close, sell the shares, sell to open.

To answer your question, yes, they would be bought again at a loss.

 

[elasalle]

I sold all my piggy bank Jun 24 300 leaps(at loss) and got me Jan 25 250 Calls with the proceeds. Less number of options, but ended by with better delta.(not by much ~ +200-300).
Jan 250 calls had dropped by around $11, and Jun 24 300 calls had dropped by ~ $8.
Hoping that the Jan 25 250's will recover faster than the Jun 24 300's .... and maybe I can start selling CC's at lower strikes .....

(rope a dope) ...must hang in there till the 19th ....

 

[corduroy]

i am FOR REALSIES starting to get SICK and TIRED of tsla price action nonsense (EM distraction, daily MMD, 2-4x multiplier, capping for no reason, etc)

if sp doesn't improve by yearend, very high chance i will gradually move half of my acct to trading SPY/SPX instead

need some kind of 'diversification' for balancing

in fact, i am already daily looking at SPY/SPX summaries by bloggers/traders to learn the ropes

methinks betting my retirement income based on one man's physical/mental health is too much risk now that he is even more distracted

(mods, don't kick me)

I agree. I love Tesla as a company, the mission, the products, etc, but the stock not so much anymore. Who would have guessed that Elon's twitter account was the black swan that we were always on the lookout for. I am holding everything I have forever, but I don't feel confident adding to any long positions.

As far as SPY, that is now responsible for 3/4 of my weekly options profits. I believe the skills learned trading Tesla options are transferrable to other stocks/indexes. The only thing lost is the edge from the deep knowledge we have of Tesla, but I think sound strategies and trading rules can mostly make up for that.

 

[bballshinobi]

I agree. I love Tesla as a company, the mission, the products, etc, but the stock not so much anymore. Who would have guessed that Elon's twitter account was the black swan that we were always on the lookout for. I am holding everything I have forever, but I don't feel confident adding to any long positions.

As far as SPY, that is now responsible for 3/4 of my weekly options profits. I believe the skills learned trading Tesla options are transferrable to other stocks/indexes. The only thing lost is the edge from the deep knowledge we have of Tesla, but I think sound strategies and trading rules can mostly make up for that.

Based on the frustration I am sensing, the bottom is probably near…

 

[strago13]

i am FOR REALSIES starting to get SICK and TIRED of tsla price action nonsense (EM distraction, daily MMD, 2-4x multiplier, capping for no reason, etc)

if sp doesn't improve by yearend, very high chance i will gradually move half of my acct to trading SPY/SPX instead

need some kind of 'diversification' for balancing

in fact, i am already daily looking at SPY/SPX summaries by bloggers/traders to learn the ropes

methinks betting my retirement income based on one man's physical/mental health is too much risk now that he is even more distracted

(mods, don't kick me)

100% this. I am also considering getting out of TSLA -- I think there is going to be another huge run up to ATH at some point. When? who knows but I have some JUN 2024 366.67P's that I need to get out of along the way. Most likely will BTC those at a loss if it means we can get out of them.

Rolled 10/7 285P to 10/21 285P for a small credit. Banking on post earnings for this to expire worthless.

 

[john tanglewoo]

So what is the takeaway with everyone getting exercised?

If you don't want to risk it, should you be rolling out well before you are <1 intrinsic value? Less than 5? What's the thought process here?

 

[intelligator]

So what is the takeaway with everyone getting exercised?

If you don't want to risk it, should you be rolling out well before you are <1 intrinsic value? Less than 5? What's the thought process here?

Today I rolled 285/260 BPS (pennies extrinsic at the time I rolled) to next week wider 265/215 to have a buffer of $1 or more... I'd moved the December 383.33 short legged BPS to June to gain $7 plus. Those I just can't be bothered by right now. So, for me, short term staying above $1 and monitoring the dips seems reasonable one week out.

 

[MikeC]

It's a put roll sandwich with shares in the middle.
Instead of buy to close, sell to open, it was
Assign to close, sell the shares, sell to open.

To answer your question, yes, they would be bought again at a loss.

Yeah, took a $6k loss on each selling at 240 after being assigned at 300. But selling the 10/21 300p again gets my $6000 back for now and hopefully I can roll until it expires.

I basically just reversed the assignment, as if I had just rolled it like I should have yesterday.

 

[vikings123]

So what is the takeaway with everyone getting exercised?

If you don't want to risk it, should you be rolling out well before you are <1 intrinsic value? Less than 5? What's the thought process here?

When the tide changes with the macros and TSLA I really think we should be open to the idea of taking a loss on the position and reset.

We are all so naturally bullish on TSLA so I understand it's difficult but one thing I have learned is to not let my TSLA bullishness get in front of keeping my losses in check. Take the loss and live to fight another day.

 

[OrthoSurg]

i am FOR REALSIES starting to get SICK and TIRED of tsla price action nonsense (EM distraction, daily MMD, 2-4x multiplier, capping for no reason, etc)

if sp doesn't improve by yearend, very high chance i will gradually move half of my acct to trading SPY/SPX instead

need some kind of 'diversification' for balancing

in fact, i am already daily looking at SPY/SPX summaries by bloggers/traders to learn the ropes

methinks betting my retirement income based on one man's physical/mental health is too much risk now that he is even more distracted

(mods, don't kick me)

I thought l was alone feeling that way. Thanks for putting words into my feelings.

I sold back the 1500 shares I got assigned at 416.67 and sold the contract for January frigging 2024. Tired of hoping the stock will recover in the short term.

Let’s just wish I don’t get margin called during next year. The more time passes the more I accumulate income to cover potential margin calls however all my frigging money goes into covering a potential margin call. All this while Elon is kicking me right in the nuts every time I manage to stand up.

 

[Max Plaid]

What an ugly week...

Just rolled 10x -p280's to 10/21 for +$3, hoping the earnings is good

-p240's in play for this week, waiting to see for those. -c280's I feel a pretty safe

But the real pain is coming from my TSLA stock, ouch! At least they don't expire like my Jan 24 LEAPS

 

[TheTalkingMule]

Well tonight should be interesting. Got a bunch of BPS sitting out there for Nov and Oct that are waaaay ITM. Only able to roll one pile to December and lower the strike. Fingers crossed I don't get early executions.

 

[BrownOuttaSpec]

Well tonight should be interesting. Got a bunch of BPS sitting out there for Nov and Oct that are waaaay ITM. Only able to roll one pile to December and lower the strike. Fingers crossed I don't get early executions.

Whats the Extrinsic value?

 

[juanmedina]

how about this prediction:

https://twitter.com/x/status/1577660151569428482

yikes