It's been 4 weeks since we were gamma positive, Sept 27 and 28 when price was at mid 280s. From there we got here, not good. Today we are gamma neutral, gamma flip is 210, MM shorting/delta-hedging may temporarily quell. It'd be a nice change to go a week without the need to monitor time value, roll at debit, commiserate over lousy premiums to choose from.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
Does the Twitter deal close *before or after* market close?
I have some calls expiring...
I don't use much margin and am therefore not all that knowledgeable, but the little I've used it, house surplus is what I focus on always. That's the number I make sure stays comfortably large.
Closed my 28/10 230CCs this morning for a 70% profit profit in one day and sold 28/10 220 CCs at the end of the market today because I am betting on Elon selling tomorrow or Wednesday. I will close these calls tomorrow and then sit out.
I don’t know if that is a good bet or a bad one. Let’s see.
Also added shares at $200.
I don’t know if that is a good bet or a bad one. Let’s see.
Also added shares at $200.
Knightshade
Well-Known Member
AFAIK it can close any time up until 5pm Oct 28th. At that time if it's not closed they have to inform the judge who will set a trial date. But there's no reason it couldn't close, like, literally right now if they wanted it to- so sooner remains possible if there's nothing else in the way (like Elon needing to wait for $ from selling shares to settle or something)
I do the same, I consider house surplus headroom. The mistake I recently made, not much of an alternative, was to roll out a -300CSP with little time value to March. I now have a huge put reserve and little non-reserved cash available to write new CSP... looking at cash balance alone isn't enough.
My understanding is that if you have a "House Call", but you have cash in your account to cover it, then it is a "phantom call," and you are ok. But it probably means things are getting tight.... If you don't have the cash to cover it, then you probably don't have any "non-margin buying power" left either, which is bad.
All this margin consideration is scary doubly-so the your brokers decide to change the rules, which you're then in contravention of, so they liquidate your portfolio instantly...
I don't have margin, but can sort of use it via the cash-reserved against sold puts - don't need 100% covered, can write approximately 3x my ability to buy the shares, but I don't go anywhere near that. If I did and they got exercised without the ability to pay, I have 5 days to fix the shortfall
Still no Elon selling by the looks of it, encouraging to see some green...
STO 15x Jan 24 -c300's @$34 - to be rebought in event of a dump
I don't have margin, but can sort of use it via the cash-reserved against sold puts - don't need 100% covered, can write approximately 3x my ability to buy the shares, but I don't go anywhere near that. If I did and they got exercised without the ability to pay, I have 5 days to fix the shortfall
Still no Elon selling by the looks of it, encouraging to see some green...
STO 15x Jan 24 -c300's @$34 - to be rebought in event of a dump
Xepa777
Banned
Rookie numbers, pump that up!$250 next week?
corduroy
Active Member
I've been sitting on the sidelines. I had orders in to make some big moves at 190 that never filled. I'm OK missing out.
Hopefully we don't go sub 200 again and today's move provides some much needed extrinsic value and margin relief for all of us.
Edit: just sold a few -240Cs for Friday to encourage the rally.
Hopefully we don't go sub 200 again and today's move provides some much needed extrinsic value and margin relief for all of us.
Edit: just sold a few -240Cs for Friday to encourage the rally.
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Just sharing if anyone is in the same boat. On the bench sitting on shares from exercised puts at 300 strike. Held for p&d and earnings. I don't have the confidence in playing the call side of the wheel so far down my cost.
SebastienBonny
Member
SebastienBonny
Member
I was at an average cost base of 300 but moved some shares to long ones and bought the same amount at the lows (200-220) to lower my cost base to 260. Will buy some more at these levels to lower the cost base further and sold a 240 CC for next week. Gap between the current cost base of those 100 shares and the 240 strike is manageable, but could get narrower by buying more shares at the current levels.
I was thinking of selling some 10/28 calls, then saw the paltry premiums for anything > 10% OTM, so starting thinking 11/4, now I’m wary of a big jump 10/28-31 on the likelihood of the Twitter deal closing without massive Elon selling. More and more reason to procrastinate 
chiller
Member
Xepa777
Banned
I’m selling CC now for the reverse jynx. Reporting for duty!
Why would buying shares increase your margin (unless they went up, and then only relative to the older purchased situation)?
[Or offsetting naked calls]
Bought shares at ~220 with a reserve requirement of 40% - I thought I would only take a 60% hit ($13,200) because the other 40% would come back to margin from collateral from the new shares. Is that not right?
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