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Wiki Selling TSLA Options - Be the House

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Tesla on pace to almost double the previous China record for the first two months of a quarter. I'm sure this will be replaced by - Tesla still losing to BYD, and the SP will continue to drop for no reason....
Yeah I understand your cynicism but I think the Tesla news from China today will help place a floor on the stock price. Tesla China also stated there will be no more price cuts this year and refuted rumors that demand was low.
 
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Assigned on 23x -p350 09/2023 last night

Getting assigned on option 10 months out is pissing me off
Yeah, that happened to me with some -P400 09/2023s I had a couple weeks ago. What a bummer! They still had about $1 of time value left, which is typically the point I look to roll, but Fidelity assigned them to me before I could make the move. When I called to ask them about it, their answer was something to the effect of "you drew the short straw." :confused:

I've upped my threshold. I'm now trying to keep at least $2 or more of time value, but this is clearly their game to play. We need JPow to pause on rate hikes.
 
Yeah, that happened to me with some -P400 09/2023s I had a couple weeks ago. What a bummer! They still had about $1 of time value left, which is typically the point I look to roll, but Fidelity assigned them to me before I could make the move. When I called to ask them about it, their answer was something to the effect of "you drew the short straw." :confused:

I've upped my threshold. I'm now trying to keep at least $2 or more of time value, but this is clearly their game to play. We need JPow to pause on rate hikes.
I think you're mistaken on the amount of extrinsic value they had left.
 
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Perhaps. I’m simply adding the share price and option price, then subtract the strike price of the option. The result is what I’m calling time value, or theta. Is that not right?
That works as long as the option is regularly traded. Otherwise you need to use bid/ask instead of price.

Currently a $1 difference or so since it hasn't traded since yesterday.
SmartSelect_20221122_114715_TD Ameritrade Mobile.jpg

Minor clarification, time value is the total extrinsic, theta is the change in time value per day.
 
Last night was assigned 6x March 23 300p last night. Had to sell the shares and the long leg and previously assigned shares as well. They finally really got me on the puts I had been managing all year. The is really frustrating. I'm now officially at a loss overall in my TSLA holdings and I still have margin on the books that I'll need to manage. I really hope we're hitting bottom here so I can try to pick up the pieces of whatever's left. Still believe in the company 100% but this market is ruthless
 
Perhaps. I’m simply adding the share price and option price, then subtract the strike price of the option. The result is what I’m calling time value, or theta. Is that not right?
Close but not exactly.
Most systems use the mid of the Bid/offer spread.. Problem with DITM is they can be illiquid and the spread can be huge.
I know etrade has a screen that shows the Extrinsic and I've been following that for awhile for my problematic short puts
 
Last night was assigned 6x March 23 300p last night. Had to sell the shares and the long leg and previously assigned shares as well. They finally really got me on the puts I had been managing all year. The is really frustrating. I'm now officially at a loss overall in my TSLA holdings and I still have margin on the books that I'll need to manage. I really hope we're hitting bottom here so I can try to pick up the pieces of whatever's left. Still believe in the company 100% but this market is ruthless
I think we have more pain to feel and for awhile.
Sorry to hear about your hit. I've been hurt too
 
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Given all of the early short put assignments that are being reported here, I set up an area in my google sheets trade journal to automatically show me how much intrinsic value and extrinsic value I have for each open short put position.

Intrinsic value is 0 when the strikes are OTM so I don't really focus on those. But when intrinsic is positive, it means the strikes are ITM and I want to pay very close attention to how much extrinsic is left.

The debit column is the current price of the option. I'm using a service from marketdata.app that automatically updates the option price, delta, and implied volatility (IV) in real time within my google sheet. UAP is the SP when I sold the option. Current is current SP.

Hoping this will help me avoid any unpleasant early assignment surprises.


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I think we have more pain to feel and for awhile.
Sorry to hear about your hit. I've been hurt too
We're going to need to organize weekly TBA meetings. No, it's not Tuberculosis Anonymous. TSLA Bagholder Annoynymous, although the symptoms are pretty much identical: shortness of breath, night sweat, sudden weight loss, etc...