Wiki Selling TSLA Options - Be the House

[strago13]

This morning near open:

Sell XXX shares that are under water this year for tax harvesting loss purposes
BTC XX Jun 2024 367 puts
STO XX Jan 2025 270 puts
STO XX Jan 2025 350 CC on all my shares

I didnt buy any leaps yet and chose to keep the cash incase we kept going down per @vikings123 , glad I did at this point. The other moves were necessary for me to survive.

 

[vwman111]

Join the club. BPSs have caused me to lose 90% of my wealth now. Either take the loss or roll to Jan 2024 with strikes as low as possible so they don't get assigned early again. Many of us had strikes in the low 300s assigned last week for Jan 2024 already.

Thank you, I'm currently sitting on Jan 24 BPS at various strike levels in the 300s. They seem be assigned on a regular basis. Trying to decide what scenario will reduce the chance of assignment.

My understanding is once they are assigned, and if one is already tight on margin, then you lose. No ability to reopen a similar position.

 

[Yoona]

Ideas In-Focus: TSLA Overpriced Bull Put Spread has 2% Downside Cushion

Take a deep dive into some of Market Chameleon's most relevant trade ideas. Includes detailed breakdowns of strategies and payout diagrams.

marketchameleon.com

"This TSLA Credit Put Spread Could Pay 57% Return in 4 Days

Expiration	23-Dec-22
Buy	140 Put
Sell	145 Put
Credit:	$1.81

The optimal stock price for this option strategy is to close at or above $145.00 on the expiration date, December 23, 2022. In that scenario, both puts would expire worthless, allowing you to keep the entire $1.81 you received when selling the spread. That corresponds to a potential +57% return on the amount at risk with 4 days left until expiration."

 

[OrthoSurg]

Are we expecting strong bounce at the magic number of $140 target spread by CGS? Or is there Technical analysis support at $138?

Where is the signal for all buyers to chip in and start buying TSLA now that we are approaching P&D, New Twitter CEO, Elon back at TSLA, Christmas Rally, Santa Claus buying shares to bring to our homes to make us feel less like sh1t?

I just have to be mentally prepared for a margin call that’s going to happen at $136. I promised myself to stay safe and never be margin called again. I don’t wanna fail again.

 

[Yoona]

Are we expecting strong bounce at the magic number of $140 target spread by CGS? Or is there Technical analysis support at $138?

Where is the signal for all buyers to chip in and start buying TSLA now that we are approaching P&D, New Twitter CEO, Elon back at TSLA, Christmas Rally, Santa Claus buying shares to bring to our homes to make us feel less like sh1t?

I just have to be mentally prepared for a margin call that’s going to happen at $136. I promised myself to stay safe and never be margin called again. I don’t wanna fail again.

buy signal detected at 145.85, possible res 149.42

 

[Yoona]

https://twitter.com/x/status/1604880077355122689

 

[Yoona]

"Tesla Continues To Break Down From This Bearish Pattern, Here's Why A Bounce Is On The Horizon

• Tesla’s most recent lower high within the downtrend was formed on Friday at $160.99 and the most recent confirmed lower low was printed at the $150.04 level on that same day. On Monday, Tesla was falling further but the stock hasn’t suggested that the next lower low has occurred.
• If Tesla closes Monday’s trading session near the low-of-day, the stock will print a bearish Marubozu candlestick, which could indicate lower prices will come again on Tuesday. If the stock bounces up later on Monday to form a lower wick, Tesla will print a hammer candlestick, which could indicate the next low is in and a bounce is on the horizon.
• A bounce is likely to come over the next few days because Tesla’s relative strength index (RSI) is measuring in at about 26%. When a stock’s RSI reaches or falls below the 30% level, it becomes oversold, which can be a buy signal for technical traders.
• Tesla has resistance above at $152.19 and $166.71 and support below at $139.53 and $134.70.

"

Tesla Continues To Break Down From This Bearish Pattern, Here's Why A Bounce Is On The Horizon - Tesla (NASDAQ:TSLA)

Tesla, Inc (NASDAQ: TSLA) was sliding about 2.5% on Monday, in a continued breakdown from a bear flag pattern, which Benzinga called out on Dec.

www.benzinga.com

 

[JustMe]

EMA punching through the VWAP on volume. Very good sign for continued upward momentum

 

[bingoz]

I like the way tsla disconnect from SPY and QQQ right now and bounce on it own lane, same way that it went down while the marco was up. I hope to see it close the week above 160. TSLA failed at this level multiple times.

 

[elasalle]

sold some 172 CCs for this Fri ... 0.52 cents
Now pls announce the Mexico GF

 

[Max Plaid]

I have lost an unbelievable amount of money this year because I kept thinking that what ever positive news I heard (that WAS always noteworthy), would surely make the SP go up, and I was wrong every time. At some point the SP has to turn around if Tesla keeps executing, but I've finally learned to not bet on it. (How many days have we been up 2-3% in premarket and finished down 5% on the day...?) Yes, you can make more money with LEAPS than with stock, but you can also lose a lot more. I ruined my retirement because I thought I could safely trade options if I stayed far OTM. I still got killed. Be careful friends. I know some people can do it, but it is harder than it looks....

P.S. - It is really looking like I need to sell my plane....

I'm in the weird situation where I have decent realised profits for the year - around 8% of initial portfolio value, but my portfolio is 45% down overall

That's primarily because I also thought things would take-off with Q3 P&D, and I loaded up 9000 TSLA at $300, we all know what happened next! I made good $$$'s selling covered-calls all the way down, but from here the strategy is less clear, I'm just trying to get to the end of the year without doing something stupid, then see in January - the reason being that I have all year to recover any dumb moves I might (=will) make

Still have 15x -p180's to nurse, might just keep rolling those, using calls to reduce the number of contracts and/or strike weekly

For 2023 I'll be looking to target $10k per week realised. Of course depends on the IV at the time, but in principle: 15x ATM calls, 30x four strikes OTM, 70x 1% of SP or 100x $1 premium gets me to that. The positives of writing $1 premium calls is that nearly every time they will expire OTM, needs a very big move for those to get into trouble and then likely they wouldn't be *that* dITM and a roll would present itself, the opposite approach, with a small number of ATM calls will be ITM more often, but easy to roll given all the spare contacts available to facilitate

I don't know yet, I'm also thinking to write some DITM January calls to hedge to the downside - it's hard to not be affected by this crazy market, chronic fear and stress 24/7

 

[mickle]

I sold some 172.5 and 175 CCs, but waiting another day or so to decide on more.

Elon hasn't tweeted in 16 hours since the poll to step down, so I think we'll get some kind of confirmation tweet this evening, could be the market is waiting for that. And I think there's a good chance he'll show up in Mexico in the next day or two to announce the factory.

 

[CHGolferJim]

I'm in the weird situation where I have decent realised profits for the year - around 8% of initial portfolio value, but my portfolio is 45% down overall

That's primarily because I also thought things would take-off with Q3 P&D, and I loaded up 9000 TSLA at $300, we all know what happened next! I made good $$$'s selling covered-calls all the way down, but from here the strategy is less clear, I'm just trying to get to the end of the year without doing something stupid, then see in January - the reason being that I have all year to recover any dumb moves I might (=will) make

Still have 15x -p180's to nurse, might just keep rolling those, using calls to reduce the number of contracts and/or strike weekly

For 2023 I'll be looking to target $10k per week realised. Of course depends on the IV at the time, but in principle: 15x ATM calls, 30x four strikes OTM, 70x 1% of SP or 100x $1 premium gets me to that. The positives of writing $1 premium calls is that nearly every time they will expire OTM, needs a very big move for those to get into trouble and then likely they wouldn't be *that* dITM and a roll would present itself, the opposite approach, with a small number of ATM calls will be ITM more often, but easy to roll given all the spare contacts available to facilitate

I don't know yet, I'm also thinking to write some DITM January calls to hedge to the downside - it's hard to not be affected by this crazy market, chronic fear and stress 24/7

Zeroed out CC balance last week and will probably stay out until after P&D. Preliminary figures for 2022 are $48/share realized on CC, 80% of that in Jan-Jun. But like everyone else, YTD unrealized losses on HODL shares, LEAPs and short-term calls vastly exceeded that. I’m done with short-term calls forever. Count my lucky stars I didn’t spend time learning how to do (and lose big) on spreads, things are bad enough otherwise.

 

[SebastienBonny]

Zeroed out CC balance last week and will probably stay out until after P&D. Preliminary figures for 2022 are $48/share realized on CC, 80% of that in Jan-Jun. But like everyone else, YTD unrealized losses on HODL shares, LEAPs and short-term calls vastly exceeded that. I’m done with short-term calls forever. Count my lucky stars I didn’t spend time learning how to do (and lose big) on spreads, things are bad enough otherwise.

I’m at 14/share since I started trading TSLA options after the split. So 17 weeks now. Annualized that’s 42ish so not bad. Certainly not considering it wasn’t easy after the split, because taking way less risk selling below cost base. Premium also way lower now.

 

[ReddyLeaf]

……don't know yet, I'm also thinking to write some DITM January calls to hedge to the downside - it's hard to not be affected by this crazy market, chronic fear and stress 24/7

Don’t do it. I thought I was very aggressive a couple weeks back with one 12/30 -c160 B/W. Now, that looks prescient and very tame. However, just today I rolled half my straddles down to 12/30 150s, daring the market, but that early afternoon bump made me very nervous, so may roll back up later. Still there’s a possibility of continuing tax-loss selling right into EOY, but can’t be sure. I’m hedging with near ATM straddles, but my financials are at a much lower level than others here and I’m still trying to acquire more TSLA shares. For someone with 10,000+ shares, it may be more appropriate to hedge with some ITM CCs, CSPs, and +p.

Still, 2023 is a completely different beast and I expect a bounce toward $200, at least short-term, unless the financials come in really below expectations and kill it. Of course, there are still massive macro risks and nuclear war (not much to do there), but Tesla is in a very strong position and will continue to sell products at decent profits in the future. I really don’t want to be short when the SP takes off and I don’t see a lot of downside risk at $140-$150.

Edit: I plan to continue selling near-ATM weekly straddles, rolling each week, slightly skewed towards above the SP, knowing that one side wins and the other loses. This technique seems to be netting $4+/shr/wk and helps me sleep at night.

 

[Max Plaid]

Zeroed out CC balance last week and will probably stay out until after P&D. Preliminary figures for 2022 are $48/share realized on CC, 80% of that in Jan-Jun. But like everyone else, YTD unrealized losses on HODL shares, LEAPs and short-term calls vastly exceeded that. I’m done with short-term calls forever. Count my lucky stars I didn’t spend time learning how to do (and lose big) on spreads, things are bad enough otherwise.

Yeah, my paper-losses on shares are epic, well into 7-digits, it's hard not to panic and sell them, emotions run high, but in principle I don't need the money now, so as long as something doesn't come up, I can wait. Seems logical that there's more upside than down from here, even though it may take a while to play out. Surely a Q4 "miss" and lower-guidance is priced-in, no?

In any case, selling calls from here is more likely to yield profits than selling the shares, although it's also tempting to get a pile of cash and sell puts all the way back up

 

[Max Plaid]

Don’t do it. I thought I was very aggressive a couple weeks back with one 12/30 -c160 B/W. Now, that looks prescient and very tame. However, just today I rolled half my straddles down to 12/30 150s, daring the market, but that early afternoon bump made me very nervous, so may roll back up later. Still there’s a possibility of continuing tax-loss selling right into EOY, but can’t be sure. I’m hedging with near ATM straddles, but my financials are at a much lower level than others here and I’m still trying to acquire more TSLA shares. For someone with 10,000+ shares, it may be more appropriate to hedge with some ITM CCs, CSPs, and +p.

Still, 2023 is a completely different beast and I expect a bounce toward $200, at least short-term, unless the financials come in really below expectations and kill it. Of course, there are still massive macro risks and nuclear war (not much to do there), but Tesla is in a very strong position and will continue to sell products at decent profits in the future. I really don’t want to be short when the SP takes off and I don’t see a lot of downside risk at $140-$150.

Edit: I plan to continue selling near-ATM weekly straddles, rolling each week, slightly skewed towards above the SP, knowing that one side wins and the other loses. This technique seems to be netting $4+/shr/wk and helps me sleep at night.

Well I have 1500 "burner" shares that I could sell around this current price without too much problem, was thinking tow write Jan 27 15x -c120's, but maybe no point, just sell $1 weeklies, if the SP dumps further, switch to 50c premiums or 25c premiums, with 10500 shares to play with, it's the same as doing spreads, but without the hassle of the long side of the trade

Surely 2023 will be better, for Tesla things seem to be going along nicely, the IRA will give them even more advantage and hopefully the CyberTruck will come to market. Normally the FED should stop hiking rates and at some point pivot - doesn't look like the labour-market has collapsed in the US, so maybe recession can be avoided after all...

 

[traxila]

Well I have 1500 "burner" shares that I could sell around this current price without too much problem, was thinking tow write Jan 27 15x -c120's, but maybe no point, just sell $1 weeklies, if the SP dumps further, switch to 50c premiums or 25c premiums, with 10500 shares to play with, it's the same as doing spreads, but without the hassle of the long side of the trade

Surely 2023 will be better, for Tesla things seem to be going along nicely, the IRA will give them even more advantage and hopefully the CyberTruck will come to market. Normally the FED should stop hiking rates and at some point pivot - doesn't look like the labour-market has collapsed in the US, so maybe recession can be avoided after all...

As per our own Accountant, the labor market is a big question mark right now. Revised statistics for 2Q 2022 by the Philly Fed show a million missing jobs, and no one is talking about it.

The FED needs to stop immediately and wait six months or so to get a grasp on what it happening. The QT will not stop and that is sucking money out of the markets regularly.

https://twitter.com/x/status/1604121788333850632

 

[BornToFly]

Thank you, I'm currently sitting on Jan 24 BPS at various strike levels in the 300s. They seem be assigned on a regular basis. Trying to decide what scenario will reduce the chance of assignment.

My understanding is once they are assigned, and if one is already tight on margin, then you lose. No ability to reopen a similar position.

If you are really tight on margin, then you may be in trouble. Otherwise you can sell the shares, and in a three legged roll - Sell to close the long leg, buy to open new long leg as you sell to open a new short leg.

I was surprised that I was able to roll down Jan 2024 -330/+300 down to Jan 2024 270/236 for a slight credit (and slight increase in margin requirement from widening). If the BPS is at full loss, you might be able to roll it down with the same expiration to something safer, for minimal debit.

 

[dl003]

I have lost an unbelievable amount of money this year because I kept thinking that what ever positive news I heard (that WAS always noteworthy), would surely make the SP go up, and I was wrong every time. At some point the SP has to turn around if Tesla keeps executing, but I've finally learned to not bet on it. (How many days have we been up 2-3% in premarket and finished down 5% on the day...?) Yes, you can make more money with LEAPS than with stock, but you can also lose a lot more. I ruined my retirement because I thought I could safely trade options if I stayed far OTM. I still got killed. Be careful friends. I know some people can do it, but it is harder than it looks....

P.S. - It is really looking like I need to sell my plane....

I'm really sorry about what you've gone through this year. It could have been me if I didn't nearly get blown up in March 2020. I quadrupled my money in about 3 months in TSLA. Drunk on this insane return, I decided to take a 50% 401k loan and take out max margin on the entire account. The rest was history. Down 75% in 3 weeks. I was lucky I was still able to hang on by a thread right at the bottom. Since then, I've been staying away from long margin like the plague. It's taken me 3 years just to get back to where I was before COVID in term of share count. You'll make it back, too. We live and learn.