Last night I was assigned 8 x Oct7 $300. I am with TD Ameritrade. At 1pm yesterday I rolled the same puts to Oct14. I received the email this morning and opened the account. They basically invalidated the sale and purchase of the puts I rolled. I was scared it would be a big mess. I will just sell the stock and sell 8 x Oct14 $300 again. Hopefully I will be back to the same place I assumed I was when I went to bed.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
TheTalkingMule
Distributed Energy Enthusiast
Got assigned some 10/21 -$330p overnight and was advised to maybe hold off on assigning the +$290p I had paired to these in my IRA to clear the position. TSLA was down a couple bucks premarket 15 minutes ago, but it's trending up now.
Never been early assigned before and just wanna make sure I do this right.
If I feel we're headed down at the open I wait til the markets open and sell the shares(or sell premarket) and then sell the +puts, gaining whatever value increase there is on the +puts. But this only profits if I sell the shares first and then we dip deeper.
Otherwise I just call by broker(Fidelity) and have them execute the put contracts straight up, losing any extrinsic value to the put contracts.
Those are my two options, correct?
Seems to me I should be going your direction and just have them execute since I could just as easily lose money if SP pops at the open.
SebastienBonny
Member
Is it me or are a lot of people assigned early these days? Is this normal or are put buyers dumping their shares at mass volumes? Looks like put buyers rather get rid of their shares than selling the contract again for a lot of profit...?
I did my first shares to LEAPs conversion yesterday into Jan 2025 $150. I am going to leg into it really carefully because I am usually way too early with my trades. I think I am going to spend my money mostly on DITM LEAPs close to 0.90 delta with a few +10% OTM LEAPs. As far as expiration I think I will go with 2025's and I am trying to decide what % of my portfolio I should put into this conversion. If we really break into the high 100's I might do a few 2024's. Any non advice? are you guys planning something similar? what is your strategy?
Sale of stock via put exercise is long term gains on appreciation minus the put premium if the shares were held over a year.
Sale of put is short term gains if held less than a year.
BrownOuttaSpec
Active Member
We are hearing a lot of people getting assigned because there is no extrinsic value left in the position they hold. I would think most of these positions were rolls from earlier in the year before Elon announced anything having to do with buying Twitter and are now DEEP In The Money (DITM)
The huge 'unexpected' 20% swings with a general declining slope has all of the TSLA bulls here in a bad position. I know I expected Q3 P&D and the run up to monster Q3 earnings report to save my position but that has not been the case, actually the opposite has happened.
Update to this position -
On Monday open I closed the short leg of the BPS at open for $11 each - got lucky... (definitely lucky)
Tuesday I closed the long leg at $14 each.... got lucky (even more lucky)
Looking to combo roll my calls to earnings week to see if I can save some cash that is already on fire -
combo roll for me means -
Every 10 $300 C - roll to 1 $2** Call the week of the 21st or 28th if I can get it.
If not do 20-->1 either way the idea is to get it close enough for a move to make back some of the cash for no additional money.
Already lucky this week so I'm not counting on it....
But hey everyone.... IV is trending back higher and already back over 60!
That's at least a bonus of this churn is that you can be farther from the money and still make some cash!
Buckminster
Well-Known Member
Rolled to 18th Nov. 300s got $6, 280s got $3. Terrible premiums but I don't to worry for a bit now. Presumably if the SP remains depressed I will need to roll every 2 weeks still to ensure they are always 3 to 4 weeks out. Q3 ER might not be a breakout but presumably getting back to $300 is not too much of an expectation...
Sold some Nov 340 CCs(43 days out) against my Jan 25 250 leaps .... got be 27 shares .... will be more than happy to exercise or manage.
(personal account, took losses ~35K on call leaps, and sold ATM Jan 23 PUTS with proceeds .... shares stay intact ).
(personal account, took losses ~35K on call leaps, and sold ATM Jan 23 PUTS with proceeds .... shares stay intact ).
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Sorry for the late reply but there are effectively 2 main options if a BPS is exercised. Either exercise the remaining P+ or separately sell the P+ and shares.
With IBKR I have the option to exercise the P+ normally, which will happen at the end of the next trading day. Alternatively I can make the exercise final and it will go through immediately, even if after hours.
In some cash accounts you get a margin call or liquidations with a negative cash balance shortly after market open That's why I chose the immediate exercise option.
The other alternative is to sell the shares and P+ yourself. You can sell the shares premarket or after open, preferably on a pop. Similarly sell the P+ after open on a dip to maximize the value received. Usually this second option works out better monetarily. The bigger the up/down share price disparity when selling the shares and Put, the greater the benefit. The time you get to do these trades depends on the size of the exercised Puts, their impact on your cash balance and the type of cash or margin account.
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Also - totally dependent on margin - keep the long P's and sell a new tighter short side that isn't so wide and DITM to make up some cash and sell leaps against the new shares.
Over night I too had 2 puts exercised at 287.5. These originated from 295Cs that I forgot to roll and had them exercised ~3 weeks back when we briefly went above 300. Unfortunately small amount of the 200 shares had losses. I flipped the new cash into straight 290Ps for couple of weeks then roll down to 287.5 as we tanked. Now these Puts got assigned just under 30 days so I will have wash sales on them. I was suppose to roll them out yesterday but got carried away with watching Netflix. LOL. TBH I just didn't want to keep watching the stock tank and had to get my mind off of watching the ticker constantly. Usually this method worked in the past until it didn't this week. I also am carrying few more 275p in BPS that are in a danger zone hoping I get nice green day to roll forward but losing faith.
Oh dang I just realize that I got 3 Jun 21 2024 $666.67 assigned yesterday
Got some -260/+240 BPS expiring tomorrow that i'm trying to de-risk/slip out of. Options for rolling are not looking too great, would likely have to widen the spread and not at all keen on entertaining another margin death spiral. Could certainly use a sp bump right about now 
Open 'til noon look at option volume where contracts > 500
The morning trades of calls and puts relative to price, most of the trades were done before 10:45 or so.
EDIT: I'd trimmed the view to top out at 280 to remove the few outliers.
The morning trades of calls and puts relative to price, most of the trades were done before 10:45 or so.
EDIT: I'd trimmed the view to top out at 280 to remove the few outliers.
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TheTalkingMule
Distributed Energy Enthusiast
Ten minutes later Tesla gets upgraded to investment grade by s&p. Ask for something more!Got some -260/+240 BPS expiring tomorrow that i'm trying to de-risk/slip out of. Options for rolling are not looking too great, would likely have to widen the spread and not at all keen on entertaining another margin death spiral. Could certainly use a sp bump right about now
SebastienBonny
Member
Well, now we know why we've ALL been getting assigned early (for me it was 6 flippin' weeks early).
This smells/wreaks of insider trading. They must have known this upgrade was coming as of the weekend.
SebastienBonny
Member
Yes. Can’t be coincidence.
Tesla down big, investment grade upgrade and now they can load up cheap...
I hope that's a typo otherwise you really had some balls to sell deep ITM puts lol.
I'm not sure I fully agree with this. Early put assignment is likely because more people are moving to cash.
What does the upgrade have to do with it? Isn't it a good thing for you as a put seller to get exercised and get brand new shares?
edit: and also pocket the time value?
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