Wiki Selling TSLA Options - Be the House

[SebastienBonny]

Sold 185 CC for 12/2 for 1.80.
As we’re in a short week with only 1.5 trading days left, premiums for next week are rapidly falling.

 

[Max Plaid]

With this week running out of time and TSLA going nowhere despite the factual debunking of the "China demand" myth, I decided to roll already to next week and to simplify things a bit:

11/25: 5x -p180/-c180 + 5x -p185/-c185 + 5x -p190/-c190 -> 2/12 15x -p180 + 20x -c180 net +$2k

I guess you'd term that a "3:4 ratio straddle", but I'm making this up as I go along... in any case, I'm quite OK to sell 2000 TSLA @180, and happy to roll all my puts closer ATM

 

[Jim Holder]

I got assigned overnight 1,000 TSLA shares overnight at $266.66 CB from an old 12/16 266.66 CSP, bringing my total to 4,900 shares, and added around $266k to my margin owed (grrrr!)

I want to sell covered calls against my 4,900 shares to help cover the margin interest (6%) at least until the SP recovers and I can sell for smaller loss and go to cash.

Trying to get a feel for the consensus here, is 11/25 (3 days from now, with Thanksgiving/market closed in the middle) $180 C x49 for around $2k in premium safe(ish)?

I prefer to be a bit conservative because I don’t want to lose all of my shares over it, and I don’t know what’s “too risky” for a strike for this Friday.

Thanks in advance!

 

[SebastienBonny]

I got assigned overnight 1,000 TSLA shares overnight at $266.66 CB from an old 12/16 266.66 CSP, bringing my total to 4,900 shares, and added around $266k to my margin owed (grrrr!)

I want to sell covered calls against my 4,900 shares to help cover the margin interest (6%) at least until the SP recovers and I can sell for smaller loss and go to cash.

Trying to get a feel for the consensus here, is 11/25 (3 days from now, with Thanksgiving/market closed in the middle) $180 C x49 for around $2k in premium safe(ish)?

I prefer to be a bit conservative because I don’t want to lose all of my shares over it, and I don’t know what’s “too risky” for a strike for this Friday.

Thanks in advance!

View attachment 877289

Not advice obviously, but 180 in 1.5 trading days seems out of the question in current circumstances, but market can be strange.
Why not go for next weeks 185 CC with 10 contracts for same premium? That gives you more options to manage with extra contracts should that be needed.

 

[Jim Holder]

Not advice obviously, but 180 in 1.5 trading days seems out of the question in current circumstances, but market can be strange.
Why not go for next weeks 185 CC with 10 contracts for same premium?

I like the idea you raise of using less contracts for getting the same premium, basically putting less at risk. I’m just afraid of the risk of it hitting 185 within the next 10 days as we head into December.

Decisions, decisions! Grrr!

 

[SebastienBonny]

I like the idea you raise of using less contracts for getting the same premium, basically putting less at risk. I’m just afraid of the risk of it hitting 185 within the next 10 days as we head into December.

Decisions, decisions! Grrr!

If it hits 185 you‘ll not lose your shares right away. Just keep an eye on the extrinsic value.
if SP reaches 185, I’m not taking risks and I’m rolling two or three weeks out until strike 200.
To not lose weekly premium, I would then sell a new (extra) contract for the next week at 200 or preferably a bit higher.

 

[Jim Holder]

If it hits 185 you‘ll not lose your shares right away. Just keep an eye on the extrinsic value.
if SP reaches 185, I’m not taking risks and I’m rolling two or three weeks out until strike 200.
To not lose weekly premium, I would then sell a new (extra) contract for the next week at 200 or preferably a bit higher.

Interesting strategy!

When you roll up and out, the old contacts will be red, locking in the loss, right?

 

[SebastienBonny]

Interesting strategy!

When you roll up and out, the old contacts will be red, locking in the loss, right?

My strategy is to roll break/even at least. That’s why 10 or 15 higher will need a 2 or 3 weeks roll out.
Basically you close the old contract red and open a new one for the same premium In that case.
that’s how my broker works.

 

[vikings123]

Interesting strategy!

When you roll up and out, the old contacts will be red, locking in the loss, right?

My strategy is to roll break/even at least. That’s why 10 or 15 higher will need a 2 or 3 weeks roll out.
Basically you close the old contract red and open a new one for the same premium In that case.
that’s how my broker works.

When you roll you lock in the loss, it does not matter which broker it is. And be careful with rolling in the December/January months and taking a loss as that could have some tax implications. I think somebody posted a video a while back but worth looking for it.

 

[CHGolferJim]

I got assigned overnight 1,000 TSLA shares overnight at $266.66 CB from an old 12/16 266.66 CSP, bringing my total to 4,900 shares, and added around $266k to my margin owed (grrrr!)

I want to sell covered calls against my 4,900 shares to help cover the margin interest (6%) at least until the SP recovers and I can sell for smaller loss and go to cash.

Trying to get a feel for the consensus here, is 11/25 (3 days from now, with Thanksgiving/market closed in the middle) $180 C x49 for around $2k in premium safe(ish)?

I prefer to be a bit conservative because I don’t want to lose all of my shares over it, and I don’t know what’s “too risky” for a strike for this Friday.

Thanks in advance!

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+$10 in 2 days seems unlikely, but what is “safe” with TSLA? (Btw, I sold 12/2 $180 CC a few days ago on shares I want to convert to LEAPs, so I’m okay if they assign at $180 next week, but I may roll them if SP rises

 

[OrthoSurg]

I have been assigned so many times on underwater puts that my +300% position on TSLA from January is now -50%

Buying TSLA at 350 and selling at 170 is the fastest way to increase your DCA it seems.

I sold the 2300 shares assigned from the -p350 09/2023 and sold -p350 puts 06/2024.

I had no margin left or buying power to buy these $805,000 worth of shares.
Feeling the heat now.
This steaming pile of crap needs to take off again before my portfolio goes to 0

I sold 25/11 180CCs to make the stock reverse

 

[BornToFly]

Rare work day for me today, which meant I couldn't watch the SP. I was in the hospital parking lot watching the open, not sure what to do. I was kicking myself when I didn't sell shares at the open, but I see it wouldn't have mattered because my buy-stop loss order to buy them back on a rebound would have triggered.

As the SP was dropping a few minutes after the open I decided to sell 170CC for this Friday and buy 167.5 protective puts with the proceeds. I'm a little nervous I'll have to roll the CC up and out, but we will see if the short sellers continue to punish and control the stock.

 

[MrMoo]

Hi, I'm Treb, and I'm a TSLA bagholder

Hi im MrMoo and I'm a TSLA bag holder =)
Also no sudden weightloss but a steady gain in weight. Sigh

 

[intelligator]

Slightly positive gamma today. Yesterday, I didn't look but assume it would have been -0.03 or so given the put volume. Seems to me that we have just a good a chance at 172-177 Friday as we do 172-167. Sold -177.5c for this week, hope we tag it !

 

[OrthoSurg]

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...

Hurts, what was the time value left?

Did not have the time to check in the last 5 days worked like crazy and that’s what happens when you don’t follow extrinsic value, you get assigned.

 

[OrthoSurg]

Hi, I'm Treb, and I'm a TSLA bagholder

Hi, I’m banned from using margin ever again in my trading account if I emerge on the other side of the tunnel with money left still. I put a nice reminder under my name for the rest of my forum existence.

 

[elasalle]

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...

long way down from TMC - Tesla Millionaires Club

 

[dl003]

Heres where I come in with another episode of how to safely pick up pennies in front of a steam roller:

Start of crash: 315
Bottom of crash (potentially): 165
Conventional max for wave 1/A of the bounce: 225 (0.382 retracement)
Minimum retracement for wave 2/B: 195 (50%)
Which means if you want to be absolutely sure you will not lose your shares, dont go lower than 195 for now, 1 week at a time.

 

[ReddyLeaf]

WTF went on with December puts today? The volume chart shows 30,000 put contacts traded at $270 & $300 strikes, plus some smaller numbers at other similar strikes (and I’m assuming these were BOUGHT since they are dITM so no time value). Also, there were less than 5,000 contracts of open interest, so these had to be traded today. So, WHO is buying and WHY? Math calcs: 30,000 x 100 x ($300-$170) = $390,000,000. Not just anyone can dump $390M on a bet, and that’s just one strike. Furthermore, these cannot be spreads because we’ve already seen plenty of posts about dITM puts, even out years, being assigned early. So what gives? Is someone so confident that the SP drops before 12/16, that they can bet $1B? Is this someone dumping 3M shares with 100% certainty at $170? Hedge funds trying to drop the stock?

Edit: MaxPain is currently $220, and given the put and call walls, the number seems reasonable. With no other information, I would expect that the SP rises slowly after Thanksgiving until we get close to $220, with a slow enough rise to allow the day traders to help “adjust” the MaxPain.

 

[CrunchyJello]

Slightly positive gamma today. Yesterday, I didn't look but assume it would have been -0.03 or so given the put volume. Seems to me that we have just a good a chance at 172-177 Friday as we do 172-167. Sold -177.5c for this week, hope we tag it !

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Not really sure how to interpret or use; do you have a clarifying link?