corduroy
Active Member
Thanks for the heads up on NFLX. I read this and jumped into the chart and saw the perfect setup for BCS. Sold a bunch of -305/325 for .75, then got out 15 minutes later at 60% profit. Quick and easy!
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
dc_h
Active Member
I'd say stop loss orders are dangerous after earnings. We often swing 10% in both directions, allowing market makers to make a ton of money off of stop loss orders. They'll know the order numbers and know how to force 90% or some target number into sold shares.
I do have a pessimistic view about the call. Earnings will beat, Q4 delivery target will miss or they won't discuss and Elon may need to sell another 2 billion or more to cover the twitter sale. If he announces sales are over and share buyback is on, 250 open tomorrow seems reasonable. If no buyback and no or low delivery targets for Q4, 180-200 is on the table. Some wide ass condors could get hit the next 24 hours, good luck.
I will sell some CC's for next week, way out of the money for small change, at a price I'm ok to take. I'm getting conservative and generally selling calls at a price I'm happy with and will sell puts for the wheel. Missing the wheel since our drop from 300, those puts are like printing money.
I’m hesitant to roll my 21/10 240 CCs of this week to 4/12 260 before earnings.
Seeing how NFLX behaved, TSLA could do the same. However I am also pessimistic
I closed my NFLX PUTS (with gains), just because I'm not sure what TSLA will do tonight to my margins (margin protection)
If we are up, I think I will sell some far OTM LEAP PUTS for NFLX again.
Still thinking whether I should sell Jan 24 650 CC's against all my shares ? I can always manage this. If SP goes south, will not have options tomorrow morning ... but might be better not doing anything till Q4
(Options wise, I am just a 1-trick pony )
++ split decision
my personal account is where I need most protection, and I have sold PUTS on margin as well. So sold Jan 24 650 CC's for ~$5 each. I hope to get opportunity to manage my 650 CC's
Let's milk em babies If SP hits 650 by next year, I move into bigger house with proceeds (will make sure it has Tesla Solar Roof as well )my IRA's , doesn't matter .. no margin, will let em ride without CC protection.
Also have Model X coming in this month, so will use all proceeds for the initial down payment.
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Going into today I had 10x -c200 for Friday, which I sold last week expecting a crappy Monday, didn't happen... I was planning to let them expire and exercise, but saw another possibility and rolled them up to -c220 for close to break-even on the premiums, the end result is that if they do exercise at that price it's +$7k gained on the whole set of trades... or they're easier to roll to next week
Of course if the SP tanks after earnings then it will have been a poor decision, but I remain the eternal optimist at heart
I note IV went up a lot -c250's are nearly 50% up compared to yesterday's close, almost same SP, interesting!
Of course if the SP tanks after earnings then it will have been a poor decision, but I remain the eternal optimist at heart
I note IV went up a lot -c250's are nearly 50% up compared to yesterday's close, almost same SP, interesting!
Yep...there seems to be a lot of demand for these c250 lotto tickets today. The price has been consistently climbing all day despite the up/down price action of the underlying.
Edit: IV will likely plummet tomorrow so for these to pay out (if held til tomorrow) you are likely going to need a 15% move. I hope this happens, but I don't like the risk/reward.
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scubastevo80
Member
I closed out my deep ITM BPS for close to max loss, and am still sitting on the other ones that expire in Jan 2023. As of now, I've decided to no longer trade weeklies every week but rather to make tactical trades in weeklies when I feel extremely confident. I've realized I'd rather be predominately long and want to diversify away from a single stock into other opportunities. For those that say diversification is di-worsification, I wasn't in early enough to be sitting on millions and to comfortably hang my hat on that statement. I also spent way too much time on options to lose money for that time spent. I'll continue to post, but this year has made me change my overall view on what could be for the next few months or years. As I've said before, I'm a buyer below $600 in this market (likely via LEAPs), but I'm still waiting for the inflation story to show some definitive signs of a turn around. Here's to a strong earnings report 
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corduroy
Active Member
With IV climbing I was looking at ways to play earnings and the IV crush from our old friend OA: The Three Best Option Strategies For Earnings
Not advice and don't follow me, but I sold these ICs for tomorrow.
-190/180/-260/270
Note: I don't believe that POP
Not advice and don't follow me, but I sold these ICs for tomorrow.
-190/180/-260/270
Note: I don't believe that POP
That's fine, I sold 105x of them earlier this week, unfortunately only at 0.76, but it all adds up...
Same here. I sold a lot of these last week and I am now seeing that I it would have been smarter to wait until today and gotten significantly more premium with less risk.
Live and learn.
Note to self. Before earnings wait until later in the day to sell the covered calls.
The stock has been bouncing around more or less flat while the CC prices continue to climb throughout the day.
The stock has been bouncing around more or less flat while the CC prices continue to climb throughout the day.
Up 70% now, crazy!
Thing is though, I wouldn't sell these today, I'd probably be looking at 260's given that the SP is $10 higher than when I sold the 250's, then the premium is less than I got, so all is good...
Edit: 100% up now, guess will crash-and-burn at open tomorrow, unless we get a NFLXesque pop
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SP and vol might have changed a little but I'm seeing $0.92 and 84% POP.
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bkp_duke
Well-Known Member
Theta play? Someone betting we trade sideways for the next 2 months?
Not sure what this says ... it's options volume where contracts > 500 , sharing for those with better insight. I personally am not digging the put volume at these lower strikes.
protective puts in case of earnings miss?
Well, I went with the old adage: If you have no idea what to do, do half.
I would hate to lose money if the SP climbs, but if the SP climbs I get more margin and I can afford it.
If the SP falls, I can get into trouble.
So, I sold Jan 2024 230 CC X100
Bought Jan 2024 200 Putts X 300.
Paid a debit since I didn't want to do as many CC.
We'll see. I hope to lose some money because the SP climbs and holds the next two months.
I would hate to lose money if the SP climbs, but if the SP climbs I get more margin and I can afford it.
If the SP falls, I can get into trouble.
So, I sold Jan 2024 230 CC X100
Bought Jan 2024 200 Putts X 300.
Paid a debit since I didn't want to do as many CC.
We'll see. I hope to lose some money because the SP climbs and holds the next two months.
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Knightshade
Well-Known Member
Another followup... rolling out a week and down to 295 (from 296.67) kept bouncing around 1.50-1.75 most of the day... for heck of it I put in a $1.40 order and it filled JUST as market was closing... so even if we don't get a huge bounce and I end with assigned on these eventually I saved a solid 27 cents a share...so I've got that going for me.
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