Wiki Selling TSLA Options - Be the House

[adiggs]

I guess I'm a dip buyer

Converted shares to Jan '25 200 strike calls today - 4:1 conversion using nearly all cash. One benefit of that particular contract is that there is enough volume that the bid/ask is under $1 (about $0.80 when I traded I think).

I've also opened another put spread - this one 135/120 (this week).

The new put spread goes with 160/140 expiring next week and 170/150 expiring the first week in Jan. I intentionally rolled the latter two assuming that this week would be another down week, with P&D getting close turning things around (or at least flattening out). These latter two positions are a high enough % loss that I'm also planning ahead now to either widen the spread and/or roll to a worse strike. The 170s are short enough duration that I've begun watching time value to make sure I don't cut that too fine.

 

[Max Plaid]

This is just soul-destroying, time for action, better or worse...

STO 15x 12/23 -p145/-c145 -> OK to "burn" 15x TSLA down here to de-risk, also OK to buy 15x TSLA down here and sell ITM calls

Note that a lot of -p145's traded today

Edit: used the straddle proceeds to close-out 4x -p180, 11x still remain, will look to reduce that with next week's roll

 

[OrthoSurg]

I guess I'm a dip buyer

Converted shares to Jan '25 200 strike calls today - 4:1 conversion using nearly all cash. One benefit of that particular contract is that there is enough volume that the bid/ask is under $1 (about $0.80 when I traded I think).

I've also opened another put spread - this one 135/120 (this week).

The new put spread goes with 160/140 expiring next week and 170/150 expiring the first week in Jan. I intentionally rolled the latter two assuming that this week would be another down week, with P&D getting close turning things around (or at least flattening out). These latter two positions are a high enough % loss that I'm also planning ahead now to either widen the spread and/or roll to a worse strike. The 170s are short enough duration that I've begun watching time value to make sure I don't cut that too fine.

I’m hesitating to liquidate my portfolio and buy Jan25 LEAPS too.

I just don’t know if the MM will push the SP down 50% in 2 years too just because covid24 will hit Mexico and GigaMexico goes into lockdown 4 weeks

 

[ABC2D]

I really dont know what to do at this point. Any thoughts not-advice would be tremendously welcomed.
I hold a few JAN24 $200 calls that are -85% (paid $131.67 now $20.50) and few JAN24 $166 calls that are -82% (paid $168 now $30.40). No margin. I just dont know what to do at this point. Eat the loss and buy something further? Or sell and park in stock for now?

 

[UltradoomY]

I really dont know what to do at this point. Any thoughts not-advice would be tremendously welcomed.
I hold a few JAN24 $200 calls that are -85% (paid $131.67 now $20.50) and few JAN24 $166 calls that are -82% (paid $168 now $30.40). No margin. I just dont know what to do at this point. Eat the loss and buy something further? Or sell and park in stock for now?

You don't have to do anything. There is a whole year left on those (not advice) you should probably at least wait until next year unless you need the tax write off.

 

[mongo]

I really dont know what to do at this point. Any thoughts not-advice would be tremendously welcomed.
I hold a few JAN24 $200 calls that are -85% (paid $131.67 now $20.50) and few JAN24 $166 calls that are -82% (paid $168 now $30.40). No margin. I just dont know what to do at this point. Eat the loss and buy something further? Or sell and park in stock for now?

Not advice:
Taxed or tax free account?
If tax free especially, look at it as a dollar amount and decide where you would put that money. Ignore original value & position.
Holding is rebuying in place.

 

[ABC2D]

You don't have to do anything. There is a whole year left on those

I know, but every new day in Tesla world is more doomy and gloomy that yesterday, with no end in sight. I'm holding these for over a year now and, as of today, the stock has to more than double for me to just break even.

Taxed or tax free account?

Taxed account.
I know people are converting to LEAPS, but Jan 24 LEAP is not far enough, I think, for stock to recover and being that far OTM. I'm still confident in Tesla but think it could require some time to recover. I have bunch of Jan 25 LEAPS that are also under water but I'm less worried about those.
I also started to take into equation a possibility of EM being assassinated in light of the shenanigans he is doing with twitter.

 

[UltradoomY]

I know, but every new day in Tesla world is more doomy and gloomy that yesterday, with no end in sight. I'm holding these for over a year now and, as of today, the stock has to more than double for me to just break even.

Taxed account.
I know people are converting to LEAPS, but Jan 24 LEAP is not far enough, I think, for stock to recover and being that far OTM. I'm still confident in Tesla but think it could require some time to recover. I have bunch of Jan 25 LEAPS that are also under water but I'm less worried about those.
I also started to take into equation a possibility of EM being assassinated in light of the shenanigans he is doing with twitter.

You can write calls against them... Just make sure they are over the strike - so over $200 and $166... won't pay much but it will help.

 

[Max Plaid]

I really dont know what to do at this point. Any thoughts not-advice would be tremendously welcomed.
I hold a few JAN24 $200 calls that are -85% (paid $131.67 now $20.50) and few JAN24 $166 calls that are -82% (paid $168 now $30.40). No margin. I just dont know what to do at this point. Eat the loss and buy something further? Or sell and park in stock for now?

I too have deep underwater LEAPS 15x Jan 24 -c233's, -88% - my strategy with these is (or perhaps was) to sell calls against them when the SP pops, rebut when drops, roll in-and-out. Managed that a couple of times before we went into this death-spiral. There my strategy was to sell -c300's, same expiry, the rationale being that if the SP did go back to ATH, I'd still make back most of my initial premium in the delta between the two strikes

As for converting shares to LEAPS now, I'm not at all comfortable with that. I know a lot of us did really well with LEAPS 2020 - 2021, but that was in the FED money-printing era, coming off the stock being manipulated for years. Seems like a big risk from here, I prefer to stick with shares and sell weeklies, try to recuperate the 45% drop in portfolio value this year without stressing about the time-risk

 

[strago13]

Weird feeling taking a 400% return on a *sugar* put you bought for margin protection

 

[MikeC]

Sold 100 shares, closed a -p190, bought 2x 2025 +c150. So got rid of another annoying put and increased leverage.

I would do more like that but I don’t want to book more than $3k loss this year so I may have to wait until January to do more.

 

[CHGolferJim]

Sold 100 shares, closed a -p190, bought 2x 2025 +c150. So got rid of another annoying put and increased leverage.

I would do more like that but I don’t want to book more than $3k loss this year so I may have to wait until January to do more.

Not sure exceeding $3k and carrying forward losses to 2023 is any different from waiting to do the transactions in 2023 — both losses hit the 2023 return. There could be other good reasons to delay, but not sure that’s one. ?

 

[MikeC]

Not sure exceeding $3k and carrying forward losses to 2023 is any different from waiting to do the transactions in 2023 — both losses hit the 2023 return. There could be other good reasons to delay, but not sure that’s one. ?

Why would losses in 2023 hit the April 2023 return?

 

[JSML]

You can write calls against them... Just make sure they are over the strike - so over $200 and $166... won't pay much but it will help.

I think you should able to write calls under the strikes. Just make them short term. If needed you can roll them over the strikes by rolling them out and up. I would do this incrementally, meaning you don't need to roll them over the strikes all at once, you can keep rolling them from short term to mid term, etc. etc..

 

[JSML]

Rolled my Dec 23 -c165, -c170, -c175 to Dec 23 -c155, -c157.5, -c165

Yesterday converted my last remaining BPS from Jan 25, -p300/+p310 to Jan 25 -p190/+p220. Reduced the put count by a little less than half. Received a small credit and took on more overall risk. It should be less likely to be assigned and also a better chance to expire out of the money.

 

[CHGolferJim]

Why would losses in 2023 hit the April 2023 return?

In other words, both additional losses beyond $3k deductibility limit for 2022 and losses recognized in 2023 would be taken against the 2023 return filed in 2024.

 

[JustMe]

RSI is oscillating in a gently rising channel. If this continues, the share price will eventually recover…

 

[ReddyLeaf]

This is just soul-destroying, time for action, better or worse...

STO 15x 12/23 -p145/-c145 -> OK to "burn" 15x TSLA down here to de-risk, also OK to buy 15x TSLA down here and sell ITM calls

Note that a lot of -p145's traded today

Edit: used the straddle proceeds to close-out 4x -p180, 11x still remain, will look to reduce that with next week's roll

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I can’t believe it either. Soul destroying is the perfect description. I rolled down some to 145 as well. Crazy. Bought a few shares in the $143s just for spite. I’m really starting to wonder if there is a bottom for 2022.

Edit: 12/30 MaxPain is $160. Santa rally?

Interesting experience this time was that the MM always seemed to “know” what I was doing and “adjusted” the bid/ask to be in their favor. This was for all four trades (BTC puts, BTC calls, STO puts, STO calls). Amazing how they do that. Oh well.

 

[MikeC]

In other words, both additional losses beyond $3k deductibility limit for 2022 and losses recognized in 2023 would be taken against the 2023 return filed in 2024.

I see what you mean. It’s mainly for bookkeeping purposes so I don’t have to remember my prior year loss.

 

[intelligator]

Missed the opportunity to sell CC before the never ending MMD. Opened 12/23 -130p/+135p earlier for .8 , now waiting for the reversal.