Same here and now I am just hoping that at least we can hit $320ish by the end of the year.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Same here and now I am just hoping that at least we can hit $320ish by the end of the year.
I had to liquidate 10% of my shares today to roll some December BPS to January 2024, and for more margin. Will have to do more if we keep dropping. If we aren't over 360 in 2024 I'm screwed. 
I had to liquidate 10% of my shares today to roll some December BPS to January 2024, and for more margin. Will have to do more if we keep dropping. If we aren't over 360 in 2024 I'm screwed.
The good news is that you still have 90% of your shares
The good news is that TSLA is the best growth stock available in the world
The bad news is that it is the most manipulated stock ever
The bad news is that we might be ending the Nuclear winter in 2024 and Tesla reopening its factories after the Armageddon
Rough day for a few of us ... hope you each come out of this tailspin whole. The morning looked promising, we should have flipped to the upside and stayed ! More interest developed on the put side at 200 and 210. Nice fan out forming to 230 - 235.
TheTalkingMule
Distributed Energy Enthusiast
when we were at 270 12 days ago, i thought 216 would be possible for next Fri
today's Close = 216
stay safe out there...
Well I thought I'd made it through yesterday but just now got assigned 24 x Jun'23 383.33 across 2 accounts out of a total 50 x 383.33/416.67BPS.
The 14 in the cash account I will early exercise but I expect to trade the shares/puts of 10 in the margin account shortly after open to narrow the loss. I'd already shuffled around 30 of these yesterday to safer expiries so will deal with the rest tonight.
The 14 in the cash account I will early exercise but I expect to trade the shares/puts of 10 in the margin account shortly after open to narrow the loss. I'd already shuffled around 30 of these yesterday to safer expiries so will deal with the rest tonight.
Does anyone have an explanation for the avalanche of assignments going on? Is it tax related? We've seen other periods with the stock going down the drain and puts going deep ITM, but I can't remember so many people getting assigned. Who are these people selling shares this way? I thought we were mainly dealing with market makers.
It happened to me too, four times so far in the last two months. Fortunately there are no tax consequences where I live, it's just an annoyance. I always sell the shares the next day and resell the puts. But I try to spread them over different strikes and expiry dates, to lower the chance of a large number getting assigned at the same time.
Who are these people trying to get rid of shares through assignment and why? It seems like a hassle.
It happened to me too, four times so far in the last two months. Fortunately there are no tax consequences where I live, it's just an annoyance. I always sell the shares the next day and resell the puts. But I try to spread them over different strikes and expiry dates, to lower the chance of a large number getting assigned at the same time.
Who are these people trying to get rid of shares through assignment and why? It seems like a hassle.
- Might be holders overleveraged getting liquidated (or deleveraging by exercising the put);
- might be chain reaction from too many retails selling put spreads, which fall like dominos once a substantial number of short legs is exercised and the long leg being automatically exercised;
- might have tax reasons (apparently by exercising the PUT and re-buying shares at the lower value you can reset the cost base for tax purposes in some jurisdictions);
- might be market participants going risk-off into cash because of fear.
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We discussed this a few days ago when TSLA was trading at 243 and the credit rating upgrade was announced. Some posters here said it was bullish that put sellers were getting assigned early. I don’t think it’s bullish or bearish.
Early exercise of puts happens more often than you would think. It is a convenient way to move into cash especially when the time value is negligible and/or the puts are deep ITM.
TheTalkingMule
Distributed Energy Enthusiast
I think it's likely this. For me personally, I'm only holding puts as part of spreads and am exercising a long put for every early assigned short leg. I would imagine there are tons of people doing exactly the same.
IMO these are all rolled remnants of positions opened earlier in the year that now can't really be rolled further. SP has moved so irrationally since 1Q earnings. For me it was easy enough to roll out spreads out to 3Q's "insane earnings", but SP is going in the opposite direction and now rolling is very difficult/impossible without adding considerable margin/cash margin.
The rest of my 366.xx short legs were assigned. 60X. Hopefully I can sell the shares and close the long legs without another hiccup from Fidelity....
I need advice. I don't know what to do. I have so many ITM BPSs that I will run into serious margin trouble if the SP keeps dropping.
Option 1) Selling enough shares to take the full loss on all of them and just be done. This will leave me with 1/3 of the shares I had at the beginning of the year, and forever limit my upside potential. This will affect my lifestyle and eliminate any possibility of the massive charitable contributions I wanted to do later in life.
Option 2) Sell just enough shares for a little more margin cushion, and pray we don't go much lower, and we recover by Jan 2024. Riskier, but life goals may survive. However, if we do go lower, I will have to sell even more shares than in #1 and be even worse off than I would be with Option 1.
P.S. - What is really making me mad, is that I know as soon as I'm fully destroyed, the stock will climb just like we have all expected it to do for months.
Edit: Taxable account, so I will get wrecked on taxes selling lots of shares too....
Option 1) Selling enough shares to take the full loss on all of them and just be done. This will leave me with 1/3 of the shares I had at the beginning of the year, and forever limit my upside potential. This will affect my lifestyle and eliminate any possibility of the massive charitable contributions I wanted to do later in life.
Option 2) Sell just enough shares for a little more margin cushion, and pray we don't go much lower, and we recover by Jan 2024. Riskier, but life goals may survive. However, if we do go lower, I will have to sell even more shares than in #1 and be even worse off than I would be with Option 1.
P.S. - What is really making me mad, is that I know as soon as I'm fully destroyed, the stock will climb just like we have all expected it to do for months.
Edit: Taxable account, so I will get wrecked on taxes selling lots of shares too....
chiller
Member
Can you sell covered calls to keep you afloat for a while? Since everyone is now thinking there is no bottom, I guess that the bottom is close.
If this selloff continues, we will be at a share price of -125 by 1. jan 2023.
my 11/4 -p285 was 0.01 extrinsic last night and then -0.337 at 4am today
didn't get assigned
so at today's open, i rolled them to 6/16 -p280, 11.32 credit and lower strike
my reasoning is: if they were going to be assigned anyway, why not make $ from them in the meantime even if the credit is low compared to weeklies? plus, it gives instant bump up to margin room... what am i doing wrong - did i miss anything?
didn't get assigned
so at today's open, i rolled them to 6/16 -p280, 11.32 credit and lower strike
my reasoning is: if they were going to be assigned anyway, why not make $ from them in the meantime even if the credit is low compared to weeklies? plus, it gives instant bump up to margin room... what am i doing wrong - did i miss anything?
I already have CC sold against all my shares. I could make money rolling them to lower strikes - like 233, but then I've limited all upside potential.
I did sell another 12% of my shares. I now have margin to a little below 200 SP.
I feel like this is Jan/Feb. all over again, where we had excellent Q4 Earnings, and the stock tanked anyway. I don't know if Earnings next week will do anything. We have been giving thumbs down to everyone that calls for ridiculous lows, but 180 is definitely in the cards now.
I don't know if it's option 1 or 2 but make sure you are thinking about the potential impacts wash sale rule. I'm not an expert in this but I suggest talking to an accountant or a tax expert who specializes in day trading just to make sure you are not overlooking something.
Had to buy some protective puts.. 1% of margin left on IBKR.
Brutal Scheiße..
To me this smells like massive shorting of Tesla. Big oil see this as their last chance to really drive the stock down.
But I'm not sure what that accomplishes - tesla will not need to borrow or raise more equite, so stock price isn't really that relevant to the business.
Brutal Scheiße..
To me this smells like massive shorting of Tesla. Big oil see this as their last chance to really drive the stock down.
But I'm not sure what that accomplishes - tesla will not need to borrow or raise more equite, so stock price isn't really that relevant to the business.
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