Wiki Selling TSLA Options - Be the House

[dl003]

Thank you! Planning to sell any CC’s?

I will probably do some 220 tomorrow while waiting for more clarity. It's hard to make any plan after 3% SPY day. This upward channel is pretty steep so I don't see how TSLA can break above it and stay up in a sustainable fashion. It's not that it's impossible - it's actually a TSLA staple. It just doesn't occur at this stage. After P&D or ER or once QT has ended maybe.

 

[dl003]

75M share short interest is only about 2.5% of TSLA float. Not much.

 

[Jim Holder]

I will probably do some 220 tomorrow while waiting for more clarity. It's hard to make any plan after 3% SPY day. This upward channel is pretty steep so I don't see how TSLA can break above it and stay up in a sustainably fashion. It's not that it's impossible - it's actually a TSLA staple. It just doesn't occur at this stage. After P&D or ER or once QT has ended maybe.

View attachment 880029

Godspeed! And thanks for offering so much value to us here. It definitely eases the anxiety!

 

[MrMoo]

It’s not a lot but it’s headed in the right direction.

I think Xi likes the control over the population that the policy gives him, but I don’t think he has any desire to shut down any more factories while their economy is struggling and companies are looking to lessen their dependence on them (Apple shifting to India; Tesla maybe South Korea).

https://twitter.com/x/status/1598100510837739520

Thanks mate. That is good to see!

I saw this one so i just assumed it was the same old same old.

A massive show of force by China’s police for anti-lockdown protesters, silence from Xi Jinping

Xi and the party have yet to directly address the unrest, which spread to college campuses and the semi-autonomous southern city of Hong Kong, as well as sparking sympathy protests abroad.

www.smh.com.au

Well, I screwed that up spectacularly today. I tried buying back 5,000 shares in the am at 184.2, only to have the SP head straight down after. I sold them for a $1.5 loss shortly after. Then the SP went down below 181. After losing $7500 earlier in the morning, I was scared to buy back as the SP started rising during the Powell talk. Now I would be buying back at a huge loss, which is no big deal long term, as long as the SP doesn't go back down and force me to sell low for Margin reasons. So, my plan is to sell 185 or 190 Puts for next week so that the premium lowers my cost basis if the shares are assigned. I can also roll down if the SP starts to come back down too much.

I also have 190CC for Dec. 16.

(That's right, I am a master trader.... )

I'm expecting the SP to climb more tomorrow with Semi event and Macros. Hopefully there will be a small pullback Friday so I can manage positions. But if there is a Semi surprise, with my luck we might climb another 10-20% before we pullback....

GL on the day trading buddy. I ended up giving it up because
1. Huge time difference Australia to USA, i get really tired.
2. This markets just really hard to trade.

On the bright side, everything is so low now that if you do make a mistake you can just bag hold for a while and you should be ok.

 

[treb]

If get assigned on my $195 calls, I will buy DITM Leaps.

I also have several -195c expiring this friday. I'll roll tomorrow or friday if we see continued strength, but I'm curious about your DITM leaps strategy.

My limited foray into buying TSLA leaps has been nothing short of disastrous. I bought 6x ATM Jan 2023 366.67 (split-adjusted) last December when the SP was hitting all time highs - I rolled two of them forward to Jun 2024 at reduced strikes, but the remaining 4 are essentially worthless and I'm anticipating a complete loss at expiration.

So I'm a bit gun-shy at the moment on buying more leaps, even if logic tells me the upside potential is much greater now after the 50%+ drawdown this year. How far ITM do you like to go when you buy leaps? Do you have a particular delta target in mind?

 

[Yoona]

https://twitter.com/x/status/1598119696615837697

https://twitter.com/x/status/1598145787082715136

https://twitter.com/x/status/1598115406702850049

 

[juanmedina]

E-Trade changed the way my portfolio margin is calculated two days ago. They end up cutting my margin in half and they said that is because I am too concentrated in Tesla. Did this happened to any one else? Now I don't think I have enough margin if we go down to $160 for instance so I am looking to close some positions in this up trend and sell some LEAPS as protection.

 

[CHGolferJim]

E-Trade changed the way my portfolio margin is calculated two days ago. They end up cutting my margin in half and they said that is because I am too concentrated in Tesla. Did this happened to any one else? Now I don't think I have enough margin if we go down to $160 for instance so I am looking to close some positions in this up trend and sell some LEAPS as protection.

Are you looking at Jan25 $200 or ITM LEAPs?

 

[Jim Holder]

E-Trade changed the way my portfolio margin is calculated two days ago. They end up cutting my margin in half and they said that is because I am too concentrated in Tesla. Did this happened to any one else? Now I don't think I have enough margin if we go down to $160 for instance so I am looking to close some positions in this up trend and sell some LEAPS as protection.

I’m with TD Ameritrade and they set my account for TSLA concentration which freed up rather than reduced maintenance requirements significantly. Perhaps call your customer service and ask. Perhaps mention what TD allows and maybe consider switching/transferring there.

Good luck!

 

[Jim Holder]

So it seems those of us that have 200 strike sold CC’s expiring tomorrow need 188-187 to get out, depending on the premium received when selling (me 0.43). Hopefully we see that dip as part of the MMD or throughout the day. The risky/scary part is if the SP keeps racing up it’ll cost double and triple to BTC…grrr! This is a great lesson for me of how careful I need to be in choosing strikes and not being lured by more premium.

 

[juanmedina]

Are you looking at Jan25 $200 or ITM LEAPs?

To sell leaps I am looking at Jan 24 $300 for $30-34 and I would be fine letting some shares go at that price. I will move my strike up if the SP keeps going up trying to receive the same credit. I will also try to sell those LEAPS before P&D or earnings trying to get an IV boost.

I did traded some shares for Jan 25 Leaps $340-150's currently at +30-15%, I am not sure how long should I lets those run. Q4 is looking good but Q3 was supposed to be good and we know how that turned out when we we missed the delivery consensus. I was going to get out of my positions on margin after Q3 ER.

https://twitter.com/x/status/1598119696615837697

$300? I would be golden at $300 .

 

[SebastienBonny]

Well thanks to PCE my 12/16 195 CC will be rolled today.
When reaching my strike I roll 10 higher at current SP. Will have to go to next year (1/06) to reach that for a slight credit.
Can always roll back lower should we go down again, but I don't think we will considering macro circumstances getting better and better.
Can luckily add another contract to keep on selling weeklies as well, but I tend to wait until tomorrow to see what Semi event causes.

 

[strago13]

E-Trade changed the way my portfolio margin is calculated two days ago. They end up cutting my margin in half and they said that is because I am too concentrated in Tesla. Did this happened to any one else? Now I don't think I have enough margin if we go down to $160 for instance so I am looking to close some positions in this up trend and sell some LEAPS as protection.

I am cash, 95% TSLA, and 5% my employer stock in eTrade. I suspect they would do the same thing to me...but I havent noticed any changes. Hope that helps?

 

[Yoona]

does anyone remember what is the approx OI/vol counts of 12/9 200 yesterday or before 7am today? TIA!

 

[Discoducky]

I also have several -195c expiring this friday. I'll roll tomorrow or friday if we see continued strength, but I'm curious about your DITM leaps strategy.

My limited foray into buying TSLA leaps has been nothing short of disastrous. I bought 6x ATM Jan 2023 366.67 (split-adjusted) last December when the SP was hitting all time highs - I rolled two of them forward to Jun 2024 at reduced strikes, but the remaining 4 are essentially worthless and I'm anticipating a complete loss at expiration.

So I'm a bit gun-shy at the moment on buying more leaps, even if logic tells me the upside potential is much greater now after the 50%+ drawdown this year. How far ITM do you like to go when you buy leaps? Do you have a particular delta target in mind?

I also have Leaps that are negative expiring in Jan23 bought during the split.

My strategy is to sell CC's as the stock rises and roll with dips or take assignment and buy DITM Leaps (when the stock is oversold, macros are bullish and below the 200MA) about 20% below current SP.

I only do this for ~10% of my core taxable shares. Non-tax is more like 30% of shares.

 

[intelligator]

Was going to ask but am answering as I write... haha. What's the consensus on rolling 12/2 185 to 12/2 205? Similar situation with 197.5 and 200 for Friday. It's slightly less debit. But that's throwing good money at a setup that could be a problem just the same.

 

[Chenkers]

does anyone remember what is the approx OI/vol counts of 12/9 200 yesterday or before 7am today? TIA!

Have a look at Papafox's daily trading charts thread. He records OI and Volume from MaxPain.com for each day.

Papafox's Daily TSLA Trading Charts

TSLA chart above QQQ chart above Friday was yet another high volume day with positive TSLA trading and suggestions that Elon is still selling. Although Friday's volume dipped below Wednesday's and Thursday's 125+M volumes, we still saw 114M shares trade hands. Noteworthy is the suggestion on...

teslamotorsclub.com

 

[traxila]

Market action appears tepid compared to TSLA action. Perhaps will make SP sluggish enough for us not to worry about CCs.

Or not. TSLA can be very solitary in its movements, as we already know.

 

[intelligator]

does anyone remember what is the approx OI/vol counts of 12/9 200 yesterday or before 7am today? TIA!

Let me know if you need more for December. I use the CBOE data source for the gamma charts and leave the collection open in a tab for the next day.

 

[Yoona]

Have a look at Papafox's daily trading charts thread. He records OI and Volume from MaxPain.com for each day.

Papafox's Daily TSLA Trading Charts

TSLA chart above QQQ chart above Friday was yet another high volume day with positive TSLA trading and suggestions that Elon is still selling. Although Friday's volume dipped below Wednesday's and Thursday's 125+M volumes, we still saw 114M shares trade hands. Noteworthy is the suggestion on...

teslamotorsclub.com

thx, he does, but for 12/2
i need 12/9