Wiki Selling TSLA Options - Be the House

[AquaY]

Heads up for people using etrade and trying to figure out margin effects either using Portfolio Margin Analyzer, Margin Calculator or Power Etrade previews and how a trade will effect Remaining Margin Buying Power.

Etrades margin calculations for how a trade will affect buying power are often completely wrong.
They calculate as if the trade stood alone. Not taking into account their algorythm for margin calculations.
Not taking into account if you have a short naked put and you buy a put to create a vertical spread.
I've documented this several times and have discussed it with them.
They admit it but they also admit that it is unilikely anything wiill change.

I have no answer to what you can do to calculate how a trade will effect your margin.
Just understand that you may not get accurate information from a trade until after it is actually executed.

 

[mongo]

Heads up for people using etrade and trying to figure out margin effects either using Portfolio Margin Analyzer, Margin Calculator or Power Etrade previews and how a trade will effect Remaining Margin Buying Power.

Etrades margin calculations for how a trade will affect buying power are often completely wrong.
They calculate as if the trade stood alone. Not taking into account their algorythm for margin calculations.
Not taking into account if you have a short naked put and you buy a put to create a vertical spread.
I've documented this several times and have discussed it with them.
They admit it but they also admit that it is unilikely anything wiill change.

I have no answer to what you can do to calculate how a trade will effect your margin.
Just understand that you may not get accurate information from a trade until after it is actually executed.

But it shouldn't be worse than the calculator says?

 

[AquaY]

But it shouldn't be worse than the calculator says?

It depends on the trade.
I have seen it be worse. I haven't figured out what it is doing but I know it is often wrong.
That's been my experience. Your mileage may vary depending on your positions

 

[OrthoSurg]

Futures are BAD right now....

I don’t remember the last day I saw green.
I’m shocked.

edit: I should have not said that

Edit2: if we have another -10% week my margin calculator will start to heat up

 

[juanmedina]

Cory thinks if we break $219 it would be extremely bearish and we would go into capitulation; if we bounce at $219 the first price target is $231:

 

[BornToFly]

I ment to do a trade in my mom's IRA, and it accidentally went in my account. I need a big SP bump to reverse the transaction without losing money (Bid/Ask spread issue). I HATE when I do that....

 

[juanmedina]

Sold 255 for $.6 twice already today. Close them the first time at 25% profit and the second time at 50%. I am so broke ... I need to raise some cash before the next leg down lol.

 

[Knightshade]

My 10/21 $296.67puts are down to like 25-30 cents extrinsic, so early assignment seeming likely again.... rolls are all pretty garbage though... a week further out only has strike at 295 (for $1.50/sh debit) or 300 ($3.25/sh credit). I suppose the 295 one technically would save me 17 cents a share on exercise, but with fees it's close enough to even.

Could roll out further, but the credits don't get much better week over week (tens of pennies)... Going to Nov 25 instead of Oct 28 for example bumps credit to about $5 at 300 strike, or 73 cents debit at 295...


Anybody have a great argument for rolling out to like January 20th '23 where I can get like 8 bucks for 300 strike or even credit at 290--- rather than just taking the early assign this week and riding it up assuming we get back up a fair bit between now and Jan? (these are cash secured puts in an IRA FWIW, no margin involved)

 

[Yoona]

sp is currently consolidating at ~223, which is

• today's Open
• today's fib 61% (Hi-Low)
• previous day's Close

today's fib 50% decided to be supp after noon

5-min chart:

 

[OrthoSurg]

Sold 14/10 245 CCs because you know… I need the stock price to climb up again

 

[intelligator]

My 10/21 $296.67puts are down to like 25-30 cents extrinsic, so early assignment seeming likely again.... rolls are all pretty garbage though... a week further out only has strike at 295 (for $1.50/sh debit) or 300 ($3.25/sh credit). I suppose the 295 one technically would save me 17 cents a share on exercise, but with fees it's close enough to even.

Could roll out further, but the credits don't get much better week over week (tens of pennies)... Going to Nov 25 instead of Oct 28 for example bumps credit to about $5 at 300 strike, or 73 cents debit at 295...


Anybody have a great argument for rolling out to like January 20th '23 where I can get like 8 bucks for 300 strike or even credit at 290--- rather than just taking the early assign this week and riding it up assuming we get back up a fair bit between now and Jan? (these are cash secured puts in an IRA FWIW, no margin involved)

Not the same but similar dilemma , can't roll 10/21 BPS for anything but a debit because of how deep ITM they are. Near or far out, same poor value. @adiggs commented in this post Wiki - Selling TSLA Options - Be the House

Unless we magically clear 265, I've decide to take assignment (if they assign this Friday) and write near the money calls now for this week (-230c) and repeat for next. The calls will be against a set of shares that I bought at 220 a few months ago through a BW. Alternatively, I may assign the same size lot from a BW at $273 to offset capital gains from shares called away at low cost basis. Either way, I can let shares get called away or prefer to not roll anymore, ideally expire worthless.

 

[OrthoSurg]

Finally never managed to sell my 245 CCs @1.20, by the time the representative of the bank reviewed the trade it was already down to 0.85

Maybe in their system the CC I bought back last Monday didn’t clear yet ti free up the buying power to sell Covered calls again but it would have been a nice +25% in 15 minutes

 

[corduroy]

My -250P's were at about .30-.40 extrinsic, so as much as I dislike rolling on a Monday, I rolled down and out 10/21 for a small credit. I'm in assignment avoidance mode now and just wanting to preserve cash.

 

[Max Plaid]

Not the same but similar dilemma , can't roll 10/21 BPS for anything but a debit because of how deep ITM they are. Near or far out, same poor value. @adiggs commented in this post Wiki - Selling TSLA Options - Be the House

Unless we magically clear 265, I've decide to take assignment (if they assign this Friday) and write near the money calls now for this week (-230c) and repeat for next. The calls will be against a set of shares that I bought at 220 a few months ago through a BW. Alternatively, I may assign the same size lot from a BW at $273 to offset capital gains from shares called away at low cost basis. Either way, I can let shares get called away or prefer to not roll anymore, ideally expire worthless.

If the puts aren't too far ITM then you can aways straddle with some calls and get a strike or two lower, or if you think the SP is going to stay down a bit go more agressive. I guess you have 10/14 -p265, which are valued at close today $42.07?

Rolling to -p265 10/21 only yields 23c!! However, you could write -p262.50/-c262.50 and get about the same premium, of course there's always the risk that the SP rises above 262.50 then you might get an issue in the opposite direction, but even with god earnings, that seems unlikely from here. In any case you've essentially reduced the cost of your puts by $2.5 and you can repeat the trade weekly, depending on the SP, lowering the put cost, bringing it closer to the money, with more extrinsic, etc.

Not advice, but just one approach I've used over the last months with great success

 

[kabin]

You can always go long once the trend is your friend. In the meantime....

 

[intelligator]

If the puts aren't too far ITM then you can aways straddle with some calls and get a strike or two lower, or if you think the SP is going to stay down a bit go more agressive. I guess you have 10/14 -p265, which are valued at close today $42.07?

Rolling to -p265 10/21 only yields 23c!! However, you could write -p262.50/-c262.50 and get about the same premium, of course there's always the risk that the SP rises above 262.50 then you might get an issue in the opposite direction, but even with god earnings, that seems unlikely from here. In any case you've essentially reduced the cost of your puts by $2.5 and you can repeat the trade weekly, depending on the SP, lowering the put cost, bringing it closer to the money, with more extrinsic, etc.

Not advice, but just one approach I've used over the last months with great success

Thanks for pointing out this pairing, will explore the mechanics of it. They are 10/21 265/215 bps that I debit rolled last week for stay alive extrinsic.

 

[corduroy]

but even with god earnings

Even god earnings can't save our ITM puts these days.

 

[Yoona]

sp is currently consolidating at ~223, which is

• today's Open
• today's fib 61% (Hi-Low)
• previous day's Close

today's fib 50% decided to be supp after noon

5-min chart:
View attachment 862073

add:

• AH 8pm is exactly 223.0

that.number.again.

 

[Yoona]

add:

• AH 8pm is exactly 223.0

that.number.again.

*perhaps* i found the significance of 223? i think it goes back to the 8/31/2020 5:1 stock split and been a strong supp for almost 2 yrs now

hoping that's the tsla bottom, even if there's an occasional intra-week drop below it

TSLA 3yr-1wk chart:

 

[intelligator]

223 it is ! The gamma exposure seems to be concentrated in the 220 to 240 range, 235 would be a nice place to land by Friday. We ended green but pre-market is red. More sideways trading Tuesday?