In most brokerages, you can execute even OTM options. With SP under 150, one could contact the firm, execute the put and buy the shares in the same trade.
However, the drop below 150 was minimal so no great incentive to do so.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
However, the drop below 150 was minimal so no great incentive to do so.
Probably another Twitter files is my guess. I agree with Gary that the first catalyst might be a new CEO but Elon’s having so much fun with Twitter that he will relinquish his Tesla CEO role first lol.
I bought puts on the morning pump. Bunch of Dec 23 150s and some Jan 150 puts. Will day trade these next week. I don’t have many CCs open for next week.
I saw a new twitter files but how do you that was the coup de grace?
scubastevo80
Member
I chickened out early today and rolled my 150/135 to next week 140/125 for a $0.45 credit. Happy that my 145 and 140s expired worthless.
Oh, you're right, was my assumption from the number of Elon emojis...
The S&P index takes care of this situation. Those funds have to maintain a certain ratio. This week's selling (aside from Musk) should be from the index rebalancing.
this week's -14.69% drop (Mon Open - Fri Close) is the 8th largest intraweek
in TSLA historyTop 50 TSLA IntraWeek Drops and Stock Price Growth 4-8 Weeks Later
- use Tue/Thu if Mon/Fri is holiday
- 12/16 has no data yet for 4 and 8 weeks in the future, default=0 for now
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corduroy
Active Member
Almost sold my about 20% of my shares to close my -250 and -245 Ps and be rid of them, but held off. I keep thinking about my big loss last year on the Hertz BCSs. With those, if I would have just held on 1-2 more weeks I would have got out with no loss. I'll see what next week brings.
Still doing great with SPY IC's this week, but they pale in comparison to the losses mounting in TSLA.
Still doing great with SPY IC's this week, but they pale in comparison to the losses mounting in TSLA.
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That’s the reason I sell all the shares of the puts I get assigned and sell the same contracts but now I am selecting lower strike price to avoid getting assigned every week. I am absorbing losses gradually. Once I get assigned on a Jan2025 put I sell the shares and STO a new contract by improving the strike price from. Biting one bullet at a time. Hoping for a recovery
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willow_hiller
Well-Known Member
Maybe a very basic question, but it really isn't covered in any of the options trading courses I've taken over the years, nor has paper trading adequately prepared me for this...
How do you all determine your limit prices for selling options? When paper trading on ThinkOrSwim, if a single option is actually traded at your limit price, your paper trade goes through. But I tried to sell covered calls twice this week, setting my limit locked at the ask, and wasn't able to get the order to fill in either case. Most frustratingly, I frequently saw the last trade price hit my limit, but I'm guessing my orders must be the lowest priority to fill.
Do you just suck it up and set your limit at the bid? Or hope the SP briefly spikes after sending your order?
How do you all determine your limit prices for selling options? When paper trading on ThinkOrSwim, if a single option is actually traded at your limit price, your paper trade goes through. But I tried to sell covered calls twice this week, setting my limit locked at the ask, and wasn't able to get the order to fill in either case. Most frustratingly, I frequently saw the last trade price hit my limit, but I'm guessing my orders must be the lowest priority to fill.
Do you just suck it up and set your limit at the bid? Or hope the SP briefly spikes after sending your order?
If you are selling, you will not get the Ask. Usually somewhere between the Bid and the Mid.
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Can you give an example of the mechanics on this? When you get assigned the Jan2025 and STO a new contract, is it for the same Jan2025 expiration? How do you decide how much to improve the strike price?
I'm approaching dangerously low extrinsic value on a number of march, april, and september 2024 puts. Trying to decide whether it's worth prolonging the pain by rolling, or taking assignment, then selling the shares and opening new CSPs - but would be interested in opinions on which is the better path...
I think it’s uncommon for trades to fill at the ask unless the share price is moving quickly. It helps to trade strongly traded options so the bid ask spread tends to be narrower.
You can try setting the limit between bid and ask
Edit: Ninjad by @BornToFly
I usually start at the mid and if it doesn't fill quickly, I'll ratchet it down a few pennies until it fills.
Really depends on the option premium for those covered calls. I will most times use market orders based on key resistance levels and support levels.
For example I will be ready with the market order and buy/sell based on a key level like this morning when TSLA hit 161 and triggered my market order.
For options farther with higher premium I have found that the mid point usually works.
Thank you for this. At least this gives me some hope, although I think we hit 140 next week.this week's -14.69% drop (Mon Open - Fri Close) is the 8th largest intraweek
Top 50 TSLA IntraWeek Drops and Stock Price Growth 4-8 Weeks Later
View attachment 885886
View attachment 885889
- use Tue/Thu if Mon/Fri is holiday
- 12/16 has no data yet for 4 and 8 weeks in the future, default=0 for now
I'm having a really hard time with the 50% drop in the last 3 months. My stress level is through the roof. I have a constant headache and difficulty sleeping. But I can't sell everything and move on because my financial future relies on the SP going back up and my account recovering some of its losses. I can't stay retired on what I have left.
Even though spreads got me into this mess, I thought about doing BCS of 175/225 for next week. But the reminder of how much TSLA can go up in 4-8 weeks is a good caution to everyone to be careful on the call side. I guess the only difference is that this time we may be in an extended Bear market, so not selling ANY calls might be a missed opportunity....
EVNow
Well-Known Member
Good question. Its good to hear what everyone else is doing as well.
It depends on a few things.
- How much time do I have ? If I have a lot of time I try to estimate the high value of the option and put a limit there. You can estimate by looking at the delta and how much higher the SP may go. If I don't have much time I'll use the mid and reduce. I rarely try market orders.
- If I'm setting a FTC order to basically catch the morning exuberance, I usually use an optimistic limit.
- A lot of times I also use the Ask limit if SP is going up.
EVNow
Well-Known Member
That's why I don't sell any options more than a week out ...
IMO, all it will take for SP to go up is Musk announcing he found a CEO for the bird.
PS : I feel your pain. Very similar situation for me in '19. I had bought a LOT of calls and SP kept dropping. I hated getting up early in the morning to follow the market only to see it drop even more.
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