Wiki Selling TSLA Options - Be the House

[OrthoSurg]

Closed my calls I bought in Friday for 33% gain at open

Will sell CC for 240 I think, I don’t know when

Edit: Finally sold when I saw +4.5% for 1.50 for 240 strike for Friday

Hope I have to roll them!

 

[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)

Following up on this BTW, a week later and still never got assigned.

extrinsic actually went up to like 60 cents presumably due to IV bump ahead of earnings.

Still expect I'll be taking shares on these though as rolls still suck unless I go a fair bit further out so not sure there's any better plans for em.

 

[Max Plaid]

Are you all actually considering selling covered calls into this just to take advantage of the IV drop? I'm looking for an entry or short-term bounce trade. Likely eyeing either a bull call spread that I'll close before earnings release.
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Yep, STO 10/21 -c250's @0.75, needs +15% from here for those to go ITM, which isn't very likely, even with good earnings and if they did go ITM, likely wouldn't be by much and the roll would be straight-forward enough

On the other hand, of you'd asked me last Friday at close if I would sell all my shares for $250, I may well have said "yes" - I suspect there will be plenty of chances in the next year to get back in at that price and selling puts also brings in the $$$

 

[BornToFly]

Yep, STO 10/21 -c250's @0.75, needs +15% from here for those to go ITM, which isn't very likely, even with good earnings and if they did go ITM, likely wouldn't be by much and the roll would be straight-forward enough

On the other hand, of you'd asked me last Friday at close if I would sell all my shares for $250, I may well have said "yes" - I suspect there will be plenty of chances in the next year to get back in at that price and selling puts also brings in the $$$

I'm not as brave. Sold 200X 10/21 -c260 for .31
Almost 20% up from here.
If they hit on Friday the rest of my portfolio will be so happy....

 

[chiller]

I sold 10x 240 calls for oct21.
Got 1.86 per contract.
At this point I am content with them getting into trouble...

 

[intelligator]

Same thought, sold 240 for the 21st at the first top, 2.00 per contract.

EDIT: They just went on sale , 2.25 now Looking at 245 for next batch , writing an order for same premium, same expiry.

 

[juanmedina]

I sold 240, 245 and 250. I need cash and after earnings the premiums will be crap.

 

[Yoona]

does anyone know why the markets are up? what's the good news? TIA!

 

[mongo]

does anyone know why the markets are up? what's the good news? TIA!

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Dump on Friday, buy on Monday.

That's the sound of the market
working on the option chain gang...

Maybe?
Uk finance minister reversing last week's trajectory?

 

[CHGolferJim]

I’m so mentally and actually burned on buying calls that I couldn’t pull the trigger on the what-seemed-obvious Friday 3pm to Monday AM surge into earnings. Tuesday and Wednesday? Just going to stop buying calls other than 2-year LEAPs. My trading acumen seems negligible, so will just keep to HODLing shares and selling/closing CC and do the best I can.

At the moment, recent closings of 1-6 month covered calls pre-earnings seems to have been a good move, although I haven’t compared prices to current. Why give myself another headache? Holding off on selling more CC until mid-day Wednesday, probably/maybe…….

 

[chiller]

I sold 10x 240 calls for oct21.
Got 1.86 per contract.
At this point I am content with them getting into trouble...

That was clearly too early.
Sold another 10x for 2.6

 

[adiggs]

In on the action - sold 235 calls for next week on the b/w shares. In for 6.30ish - these shares were assigned at 230, so the opportunity to have these assigned at 235 would be much to my liking.

I went for next week as I'm expecting the shares to be more down than up after earnings (good earnings, but it'll be priced in by then), and I wanted to get a better strike and credit / income in place for if that happens. I also like having -something- open that creates realized gains when the share price goes down.


Also in with 250 strike cc for this Friday. Waiting for Wednesday may well have been a better choice, but I don't know that. I do know that I'm comfortable with rolling these cc if necessary, and kind of hoping that I need to do so. As with the first position - I know that I don't want to be hoping for something better when I have something good in hand.

 

[adiggs]

if my count is correct, we completed wave 4 of this down leg this morning and now in the middle of wave 5. my initial target for it is 195. We should get there by Monday / Tuesday. Worst case scenario we might get down to 180 before or right after ER.

Macro-wise, SPX is in the middle of wave 3 - very nasty and destructive. My target for early next week is 3390. That should coincide with TSLA 195. After a small bounce, SPX will complete its 5th wave around 3250 the week after

What does it mean?

A. Hopefully TSLA will bottom before SPY as its wave 5 will have bottomed before that of SPY
B. How deep our wave 5 goes will depend a lot on how well ER goes.
C. However deep this wave 5 is, it will mark the end of the crash and we will begin a strong and sustained bull run.

Be careful it will get worse before it gets better. I hope everybody has stayed away from leverage.

View attachment 864000 buy SQQQ shares / calls if hedging is neccessary. My target for it is 90 before this crash is over.

If anyone needs advice during trading hours, feel free to reach out to me during the day. Hope I will see everybody on the other side, unscathed.

I've been assuming the waves you are referring to are Elliot Waves, though I realize I don't actually know.

What I'm really wondering about - do you have a resource that you used to learn about these, and/or would point people to to read / learn more? This is a topic that I find fascinating and really want to learn more about.

 

[dc_h]

In my mind it should not go down like Rivian becuase Tesla actually makes money.

Is anyone feeling like selling their Tesla shares? I feel like getting out of this stock and go all cash if we hit $300 again. I just don't think we will see AH for years which will happen IMO after the Fed pivots and inflation seems really under control. I really want to see what happens after the Twitter mess ends; I was really surprised how the stock split, S&P investment upgrade did nothing and wonder if the "shares buy back" if it happens will do the same. I think Q3 ER will be good but Q4 deliveries might again hurt the growth story which is what drives the stock:

View attachment 864593

I am just venting here....

A lot of us don't need to pay for Burnt Hair cologne.

 

[TheTalkingMule]

Trying to salvage some deeply ITM BPS for this Friday. Is there any way to eat a reasonable debit on these and roll to far higher strikes and just hope for the best? My alternative seems to be contract execution and total loss of cash margin, no?

Currently have in my IRA:
16x BPS 10/21 $310/$288.33 (holding $34,672 of cash margin)

Playing with a roll on Fidelity I'm seeing:
21x BPS 6/16 $450/$466.67 (requiring $35,007 of cash margin)

Debit at midpoint is showing $1.80 and a total debit of $228(including fees).

Am I missing something here? Obviously a doubling of SP in 9 months is a longshot. But certainly paying a debit of $228 + $335 more margin is worth the shot to salvage $35k in margin I'm about to lose?

Also, I don't understand why an estimated debit of $1.80 on so many contracts is showing such a small total debit of $288?

 

[BornToFly]

Trying to salvage some deeply ITM BPS for this Friday. Is there any way to eat a reasonable debit on these and roll to far higher strikes and just hope for the best? My alternative seems to be contract execution and total loss of cash margin, no?

Currently have in my IRA:
16x BPS 10/21 $310/$288.33 (holding $34,672 of cash margin)

Playing with a roll on Fidelity I'm seeing:
21x BPS 6/16 $450/$466.67 (requiring $35,007 of cash margin)

Debit at midpoint is showing $1.80 and a total debit of $228(including fees).

Am I missing something here? Obviously a doubling of SP in 9 months is a longshot. But certainly paying a debit of $228 + $335 more margin is worth the shot to salvage $35k in margin I'm about to lose?

Also, I don't understand why an estimated debit of $1.80 on so many contracts is showing such a small total debit of $288?

It seems like opening 5 additional contracts for 6/16 at 466 is just throwing more money away. Consider paying to roll same strikes to Jan 2024. Hopefully won't have to pay another debit in 2024. Or take the full loss now.

 

[adiggs]

It seems like opening 5 additional contracts for 6/16 at 466 is just throwing more money away. Consider paying to roll same strikes to Jan 2024. Hopefully won't have to pay another debit in 2024. Or take the full loss now.

FWIW - its not really 5 additional contracts. It is an increase in the number of spreads with a smaller spread width. So max loss remains the same - I guess the leverage increases, so gains and losses are magnified. WIth losses at max, magnified losses isn't exactly a worry.

 

[BornToFly]

FWIW - its not really 5 additional contracts. It is an increase in the number of spreads with a smaller spread width. So max loss remains the same - I guess the leverage increases, so gains and losses are magnified. WIth losses at max, magnified losses isn't exactly a worry.

But it costs more to roll again in the future when you have more contracts.

 

[BornToFly]

I wand to sell some CC to buy protective puts. Can't decide if we are Red tomorrow and now is the best time to do it....

 

[adiggs]

But it costs more to roll again in the future when you have more contracts.

That's certainly true. While my transaction costs are annoying and I keep thinking about doing something about it, they are still a rounding error on all of the positions we're talking about (at least US customers of US brokers, charging .65/contract). I hadn't considered the transaction costs though.